The Treasury’s Community Development Financial Institutions (CDFI) Fund is being used to grow local economies and serve communities in need, CUNA wrote to the House Appropriations subcommittee on financial services and general government this week.
The fund makes capital grants, equity investments and awards for technical assistance to certified CDFIs. As of Nov. 30, there are 285 credit unions out of 1,066 certified CDFIs nationwide.
“CDFIs such as some Community Development Credit Unions (CDCUs) are charged with supplying low-income, distressed communities with traditional banking services such as savings accounts and personal loans, and offering individuals the tools needed to become self-sufficient stakeholders in their own future. The CDFI Fund uses small amounts of federal dollars to leverage significant amounts of private and non-federal dollars, and has added a tremendous boost to the CDFI industry (which relies heavily upon private sector funds from corporations, individuals, religious institutions, and private foundations).”
CUNA’s letter notes two specific examples:
“These examples represent just two credit unions and how the CDFI Fund is being used to grow local economies and serve the most economically distressed communities in the nation. Fully funding the CDFI Fund is a strong investment by the federal government,” reads CUNA’s letter.
The Treasury’s CDFI Fund levels were set at $250 million for fiscal year 2019 in the budget deal signed by President Donald Trump earlier this month. CUNA successfully fought for previous years’ funding when the CDFI Fund was zeroed out in early budget materials.