Investments in the Treasury’s Community Development Financial Institutions (CDFI) Fund pay off, CUNA Chief Advocacy Officer Ryan Donovan wrote to all 535 Congressional offices Thursday. CUNA has called for a $1 billion appropriation for the CDFI Fund, which gives grants, equity investments and other awards to certified CDFIs.
“Small but crucial investments can pay dividends in helping moderate- to low-income families who are particularly vulnerable during this economic crisis,” Donovan wrote. “CDFIs take a market-based approach to supporting economically disadvantaged communities, helping neighborhoods that lack access to financing foster and sustain a prosperous future.”
Donovan provided a link to CUNA’s latest one-page document on the CDFI Fund and how credit unions use it to enhance their communities. In its previous communications with Congress, CUNA has noted that during the last financial crisis CDFIs were able to leverage $12 for every $1 of federal funds.
The House-passed HEROES Act contains $1 billion for the CDFI Fund. As of May 14, credit unions make up 324 of the 1,142 certified CDFIs nationwide.