CUNA, the American Association of Credit Union Leagues, and all state Leagues wrote to House and Senate leaders Friday calling for a solution to Community Development Financial Institutions (CDFI) Fund issues. CUNA has engaged with the CDFI Fund to find solutions for CDFI credit unions receiving blanket cure notices and having their CDFI designation terminated without meaningful information or guidance.
The organizations call on Congress to urge the CDFI Fund to offer a provisional certification to any CDFI credit union which retained certification during the previous recertification year and has an application for recertification submitted by Sept. 30. The CDFI Fund will pause accepting applications from Oct. 1 to April 1, 2023.
“This temporary provisional status should allow these credit unions to continue serving their previously approved target markets and collect grants and awards through the completion of the application moratorium,” the letter reads. “Credit unions are the exact types of community financial institutions perfectly suited to use these funds to reach the neediest communities in America. We believe that this is in line with Congressional intent. We again implore you to help your community credit unions bring the relief that Congress intended.”
CUNA called for a delay in the application pause absent offering the provisional status.
The CDFI Fund issued guidance earlier this month, but that has led to its own issued which CUNA is currently analyzing.