CUNA wrote to the House Appropriations Financial Services and General Government Subcommittee Thursday with requests regarding several credit union priorities for fiscal year 2023. These include the Treasury’s Community Development Financial Institutions (CDFI) Fund and NCUA’s Community Development Revolving Loan Fund (CDRLF).
“The CDFI Fund and the CDRLF are both designed to help the types of community-based financial institutions, like credit unions, that are perfectly positioned to receive this funding the quickest and then turn it around and provide financial assistance to the people and small businesses that need it the most,” the letter reads. “Credit unions have a long history of providing low-interest loans and other types of financial assistance to individuals and small businesses during government shutdowns and natural disasters.”
The CDFI Fund makes capital grants, equity investments and awards for technical assistance to certified CDFIs. Credit unions are 469 out of 1,373 certified CDFIs as of June 14, the largest single depository institution type.
CUNA recommends the CDFI Fund receive an appropriation of $330 million in FY23. CUNA also supports President Joe Biden’s proposed $5 billion in mandatory funding for the CDFI Fund to address the affordable housing crisis.
The CDRLF funds a revolving loan program and a technical assistance program to help credit unions expand their digital services, fight fraud, open new branches in underserved areas, offer a new product or service, and more.
CUNA supported Biden’s request of $6 million for the CDRLF.