NEW YORK—The National Federation of Community Development Credit Unions (Federation) has launched a social media campaign it hopes will have an impact on decisions in Washington regarding the CDFI Fund.
The CDFI Fund has been targeted for cuts by the Trump Administration.
Called the CDFI Credit Unions Build Inclusive Economies, the campaign illustrates the overwhelmingly positive impact CDFI credit unions have on the low-income communities they serve, the Federation stated.
During April, the Federation plans to post stories of credit union members who have benefited from the safe and affordable financial products and services that CDFI credit unions provide to consumers in underserved urban, rural, and suburban communities across the U.S., with links to representatives from the Congressional district in which the credit union is located.
“The Federation urges the credit union industry and the public to share these stories with legislators in a kind of virtual town hall to protect the CDFI Fund from the budget cuts proposed by the Trump administration for 2017 and 2018. The proposed cuts would leave the CDFI Fund with only administrative funds to run non-discretionary programs,” the CDFI said.
"CDFI Fund awards are investments, not charitable donations," said Cathie Mahon, Federation CEO. "These small investments generate billions of dollars annually in the form of loans to build and improve homes, finance job mobility through wheels-to-work programs, grow businesses, increase jobs, expand access to affordable healthcare and childcare, and create greater financial capability to expand consumer purchasing power."
According to the Federation, the CDFI Fund is one of the Federal government's best strategies for leveraging private dollars to restore economic vitality. CDFIs leverage $12 of private capital for every $1 of public investment.
“Despite serving some of the most economically distressed communities in the country, CDFI credit unions consistently outperform their peers in growth, earnings and the services they offer, by building new markets of eligible and successful borrowers. They specialize in developing loans to consumers needing support to become financially stable, including credit builder loans, alternatives to payday or auto title loans, and micro and small business loans. CDFI credit unions also invest in their members by making sure that their borrowers not only have access to credit, but succeed with it, by offering financial coaching, homebuyer counseling, and foreclosure prevention services. CDFI credit unions reach consumers that other financial institutions are often unable, or unwilling, to help,” the Federation said.
The Federation represents more than 280 CDFI credit unions, which serve over seven million members with more than $70 billion in combined assets across 46 states. The Federation was instrumental in establishing the CDFI Fund and has a permanent seat of the CDFI Coalition board of directors.
The impact stories that the Federation will be sharing on Facebook, Linkedin, and Twitter throughout April will included expanded versions on the Federation's website, www.cdcu.coop. The Federation's first post can be found on Facebook at http://www.facebook.com/nfcdcu/, on Twitter at @CDCU_Federation, and on Linkedin at https://www.linkedin.com/company-beta/999948/.