WASHINGTON—As the Senate Appropriations Subcommittee on Financial Services and General Government (FSGG) considers 2020 funding, NAFCU highlighted the important role the Community Development Revolving Loan Fund (CDRLF) and the Community Development Financial Institutions (CDFI) Fund play in helping "promote access to capital and local economic growth in low-income communities."
Janelle Relfe, NAFCU associate director of legislative affairs, sent a letter to subcommittee Chairman John Kennedy (R-LA), Ranking Member Christopher Coons (D-DE), and subcommittee members ahead of the markup of the FSGG bill.
The House-passed version provides $2 million for the CDRLF and $300 million for the CDFI, in addition to funds for the Small Business Administration's 7(a) and 504 loan programs, and Relfe called on the same level of funding in the Senate bill.
"CDFI credit unions predominantly serve low-income areas and other target markets and often are the only financial services options for consumers that live paycheck to paycheck," Relfe said. "The CDFI Fund grant program helps credit unions serve communities and consumers that large banks do not focus on. Furthermore, SBA programs are an important tool for credit unions to meet the business lending needs of their members."