WASHINGTON (5/21/14)--In a letter to the Senate Appropriations subcommittee on financial services, the Credit Union National Association encouraged the committee to maintain the current level of funding to the Community Development Financial Institutions Fund (CDFIF).
The CDFIF makes capital grants, equity investments and awards for technical assistance to community development financial institutions (CDFIs), such as community development credit unions.
"CDFI-funded credit unions offer alternatives to predatory payday lenders and check-cashing services. They also promote economic revitalization and community development in distressed communities," the letter reads.
Funded institutions supply low-income, distressed communities with traditional banking services such as savings accounts and personal loans.
The Consolidated Appropriations Act for fiscal year 2014 funded the CDFIF at $226 million. This year's draft, for the fiscal year ending Sept. 30, 2015, does not yet have a CDFIF amount in the language. The bill was passed by the house May 1, and will next go to the Senate for consideration.