WASHINGTON–The House Appropriations Subcommittee on Financial Services and General Government has passed legislation for fical year 2020 that includes a number of credit union priorities and even increases funding in some areas. That includes $300 million for the CDFI Fund, which would represent an increase of $50 million in funding should it be approved by Congress, as well as $2 million for NCUA's Community Development Revolving Loan Fund.
The House Appropriations Committee is scheduled to begin markup on the bill today. Congress adjourns on midday on Wednesday.
CDFI funding has been a target of the Trump Administration, which has sought to eliminate it since taking office only to have Congress restore the funds each year.
In total, the draft bill includes $24.55 billion in discretionary funding, an increase of $1.4 billion over the 2019 enacted level and $355.5 million over the president’s 2020 budget request.
Headlines Sensationalized
"For the prior two years Congress appropriated funding to CDFI at historic levels," said Jamie Strayer, founder of CDFI grant writing firm CU Strategic Planning. "Our representative in D.C. advises our credit union clients that CDFI funding is expected to be maintained at the historic high or even increase this year, as this budget draft suggests. Headlines claiming it may be eliminated are sensationalized."
As part of the CDFI funding, it includes first-time funding of $10 million for an initiative to increase the availability and affordability of small-dollar loans.]
Funds for SBA
The draft fiscal year 2020 funding bill also includes $995.8 million for the Small Business Administration, $280.4 million above the 2019 enacted level and $228.7 million above the President’s budget request. Of this amount, the bill includes $281.8 million, an increase of $34 million, for Entrepreneurial Development Programs, including:
- $150 million for Small Business Development Centers
- $35 million for Microloan Technical Assistance
- $20 million for the State Trade Expansion Program
- $30 million for Women’s Business Centers
In addition, the bill increases the authorized levels for SBA’s Business Loans Programs and supports a level of $30.5 billion for the 7(a) loan program and $8 billion for the 504/Certified Development Company program.
For all this is included in the bill, go here.