TACOMA, Wash.–CU Strategic Planning has sent a letter to members of the House Subcommittee on Financial Services and General Government Appropriations urging Congress to restore full funding to the Community Development Financial Institutions Fund.
CU Strategic Planning, which said it has worked with more than 500 credit unions nationwide, including 200 credit unions with the CDFI designation, called on Congress to provide the funding of at least $248 million for FY 2018 and 2019 as the committee begins its work on bills for funding in those fiscal years.
“Using $248 million as a starting point and considering an increase based on the budget framework recently passed would allow CDFI credit unions to assist small business owners with small and micro business loans, and many innovative first time and other mortgage programs as well as small consumer loans to combat the cycle of payday lending,” wrote Mike Beall, chief strategic and advocacy officer with CU Strategic Planning. “Additionally, we believe CDFI should be urged to restore the maximum Financial Assistance (FA) award to the previous level of up to $2 million per grant award to a CDFI institution.”
CU Strategic Planning works with credit unions to secure CDFI funds.
“It has been a significant partner for our credit union clients working to lend to small businesses, an effort that has resulted in the addition of more than 10,000 jobs to the economy,” the letter states. “CDFI has also helped retain jobs that would otherwise be threatened. The partnership between credit unions and CDFI has also led to tens of thousands of small dollar loans and used auto loans that have helped low to moderate income families have access to affordable transportation to their jobs, helping families avoid utilizing other support programs. Additionally, housing projects with credit unions in urban and rural areas have helped thousands of Americans obtain the American dream of homeownership even though they were from low to moderate income families.”