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NAFCU calls on Congress to provide more funds for CDFIs, CDRLF
As the House Appropriations Subcommittee on Financial Services and General Government (FSGG) begins its markup of the fiscal year 2021 FSGG bill, NAFCU's Brad Thaler called for strengthening the Treasury's Community Development Financial Institutions (CDFI) Fund and NCUA's Community Development Revolving Loan Fund (CDRLF), which are utilized by credit unions to support low-income communities.
Thaler, NAFCU's vice president of legislative affairs, asked the subcommittee to fund the two programs at or above FY2020 levels and to provide supplemental funding in response to the coronavirus pandemic. He noted the House-passed HEROES Act's inclusion of an additional $1 billion in emergency funding for the CDFI Fund that "would allow more credit unions to access monies to provide specific programs to help their members."
"We would also urge you to consider measures to make it easier for credit unions to become a CDFI so that more credit unions can take advantage of this important program," Thaler wrote.
In addition, Thaler cited how the CDRLF allows credit unions to receive technical assistance grants to better serve low-income communities and highlighted NCUA Board Member Todd Harper's request for $10 million more for grants this year.
"Increasing these grants can help ensure that these credit unions have work-from-home infrastructure in place that is appropriately secure during social distancing measures," Thaler said. "NCUA has seen a strong increase in demand for these grants due to the pandemic and is unlikely to have enough funding currently to meet the demand without additional funding."
The NCUA in April said it would use the majority of the 2020 CDRLF for coronavirus assistance.
Thaler also touted the importance of the Small Business Administration's (SBA) lending programs and urged lawmakers to ensure these programs have the funding they need to support small businesses and lenders.
NAFCU remains in close contact with Congress and the NCUA to further discuss the association's requests for relief to help credit unions deal effectively with the coronavirus.
The association in May discussed with the NCUA's Office of Credit Union Resources and Expansion ways to expand credit unions' access to CDRLF grants and the CDFI Fund, and has also held calls with NCUA Chairman Rodney Hood and Board Members Todd Harper and J. Mark McWatters.