WASHINGTON–CUNA has sent separate letters to the House and Senate in support of a $2 million funding level for the Community Development Revolving Loan Fund (CDRLF) in fiscal year 2020, which is the same amount it has received every year since 2015, the trade group noted.
CUNA strongly supports the CDRLF and has fought to ensure it is funded in recent appropriations bills.
CUNA told Congress credit unions have been able to leverage these funds to best serve their members and communities, particularly those serving low-income communities. The CDRLF was created in 1970, with NCUA taking over responsibility for the fund in 1986.
“Some of these technical assistance grants have been used to help credit unions expand their digital services, such as mobile or home banking or electronic bill payment. Other grants have been used to help small credit unions fight fraud and embed EMV chips in their credit and debit cards,” CUNA stated in its letter. “…These grants enable small credit unions to offer a new product or service, such a new ATM or an asset liability management model. In an age of rapid consolidation in the credit union and small bank sector, it is vital to allow these small credit unions to compete and not have to close shop or merge with a larger financial institution that may not know the needs of the members of these small credit unions.”
CUNA said it is concerned that an elimination of this fund will result in fewer low-income credit unions having access to needed capital to provide critical services to low income credit union members.