Senate Approps Cmte passes FSGG bill with full CU funding
The Senate Appropriations Committee passed the Financial Services and General Government (FSGG) Act for Fiscal Year 2019 Thursday, a bill that includes several CUNA-supported provisions. Most importantly, it contains CUNA-supported funding levels for several programs used by credit unions.
“We’re pleased to see this bill move forward with its full funding for several government funds credit unions are able to leverage to better invest in, and serve, their communities,” said CUNA President/CEO Jim Nussle. “CUNA will continue to advocate for these funds, and other credit union priorities, as the appropriations process for fiscal year 2019 continues.”
The bill includes $250 million for the Treasury’s Community Development Financial Institutions (CDFI) Fund, and $2 million for NCUA’s Community Development Revolving Loan Fund. CUNA supports both funding amounts.
CUNA also supports the bill’s loan volume caps of:
- $30 billion for the Small Business Administration’s (SBA) 7(a) program, which allows the government to guarantee up to 85% of loans, with the guaranteed portion not counting against credit unions’ cap on member business lending. This amount is $1 billion more than Fiscal Year 2018’s enacted level of $29 billion; and
- $7.5 for the SBA’s 504 loan program, which is used for long-term, fixed-rate financing on major fixed assets, such as equipment and real estate. Credit unions also participate in this loan program.
The bill’s report language also contains items of interest for credit unions, including:
- Urging the Treasury’s Financial Crimes Enforcement Network to continue to work closely with the Department of Justice to combat money laundering through U.S. financial institutions; and
- Directing the Internal Revenue Service to brief the committee within 90 days on its efforts to protect personally identifiable information of minors.
The House Appropriations Committee passed its FSGG bill for FY2019 earlier this month. While it only funds the CDFI Fund at $216 million, it contains multiple CUNA-backed regulatory relief provisions.
Additional details on both bills can be found on CUNA’s Removing Barriers Blog.