CUNA wrote in support of the Senate’s Financial Services and General Government (FSGG) Act for Fiscal Year 2019 and its funding levels for several vital credit union funds this week. The Senate is expected to finish consideration of the bill Thursday.
“We thank the [Senate Appropriations] Committee for fully funding the Community Development Financial Institutions (CDFI) Fund at $250 million… It makes capital grants, equity investments and awards for technical assistance to CDFIs,” the letter reads. “We also strongly support the bill’s funding level of $2 million for [NCUA’s] Community Development Revolving Loan Fund (CDRLF)... CDRLF funds a revolving loan program and a technical assistance program.”
CUNA also noted its appreciation for the bill’s loan limit designations for two Small Business Administration funds, $30 billion for the 7(a) loan program and $7.5 billion for the Section 504 loan program.
The 7(a) program allows the government to guarantee up to 85% of loans, with the guaranteed portion not counting against credit unions’ cap on member business lending. Section 504 loans are used for long-term, fixed-rate financing on major fixed assets, such as equipment and real estate.
The House passed its FSGG bill last week, legislation that contains significant regulatory relief for credit unions.