Senate passes FSGG bill w/ CUNA-backed funding levels
The Senate passed its Financial Services and General Government (FSGG) Appropriations Act for Fiscal Year 2019 Thursday as part of a package of four appropriations bills. CUNA wrote Senate leadership last week to support the bill, which contains full funding levels for several federal programs that credit unions utilize.
“We thank the Senate for passing the bill, and for the attention of Senate appropriators to call for full funding for several important funds that credit unions are able to leverage to better serve their members and communities,” said CUNA President/CEO Jim Nussle.
Specifically the bill funds:
- $250 million for Treasury’s Community Development Financial Institutions (CDFI) Fund, which makes capital grants, equity investments and awards for technical assistance to CDFIs;
- $2 million for NCUA’s Community Development Revolving Loan Fund, which funds a revolving loan program and a technical assistance program;
- A loan volume cap 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; and . This amount is $1 billion more than Fiscal Year 2018’s enacted level of $29 billion; and
- A loan volume cap of $7.5 billion 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.
The House passed its FSGG bill last week, which contains numerous regulatory relief provisions for credit unions. The two chambers will meet in conference to work on the two bills.