Committee passes bill w/ $300M for CDFI Fund, $2M for CDRLF
CUNA supported appropriations levels for two credit union-related funds in the Financial Services and General Government (FSGG) Act for Fiscal Year 2020 in a letter to House Appropriations Committee leadership Tuesday. The committee passed the bill Tuesday.
The legislation allocates $300 million for the Treasury’s Community Development Financial Institution (CDFI) Fund, a $50 million increase over last year. The fund makes capital grants, equity investments and awards for technical assistants to certified CDFIs.
As of May 1, there are 291 credit unions out of 1,083 certified CDFIs nationwide.
CUNA also supported $2 million in funding for NCUA’s Community Development Revolving Loan Fund (CDRLF). The CDRLF funds a revolving loan program and a technical assistance to help credit unions serving low-income communities:
- Provide financial services to their communities;
- Stimulate economic activities in their communities, resulting in increased income and employment; and
- Operate more efficiently.
The bill’s report was released Monday and it contains language that:
- Calls on federal financial regulators to study the impact of the current expected credit loss (CECL) standard;
- Directs NCUA to issue a report on its efforts to support and advance community development credit unions in low-income communities;
- Encourages the Treasury to work with the Financial Literacy and Education Commission to develop materials to serve at-risk groups;
- Urges Treasury’s Financial Crimes Enforcement Network to work with regulators and financial institutions on innovative approaches to detecting and combating money laundering and terrorist financing;
- Dedicates $10 million to a Small Dollar Loan Program to encourage Community Development Financial Institutions to address the issue of predatory lending in their communities and provide an alternative to payday lenders.