CUNA wrote to House and Senate appropriators Friday in strong support of funding NCUA’s Community Development Revolving Loan Fund (CDRLF) at $2 million for fiscal year 2018. The administration’s budget submission to Congress eliminates CDRLF funding.
“We urge Congress to fully fund the CDRLF because this program makes a difference for many low-income designated credit unions and helps them provide important services to their members,” wrote CUNA President/CEO Jim Nussle. “The CDRLF usually receives requests that greatly exceed available funds and CUNA is concerned that an elimination of this fund will result in fewer low-income credit unions having access to needed capital to provide critical services to low-income credit union members.”
The CDRLF was established in 1979 and transferred to NCUA administration in 1986. It assists credit unions serving low-income communities to provide financial services to their communities, stimulate economic activities, and operate more efficiently.
Specifically, the CDRLF funds a revolving loan program and a technical assistance program. The revolving loan program had outstanding loans of $9.1 million as of Sept. 30, 2016, from 25 loans to 25 credit unions.
For the technical assistance program, the CDRLF made 309 technical assistance awards totaling $2.5 million in 2016.
These technical assistance grants have helped credit unions offer services such as: