WASHINGTON–CUNA has sent letters to both the House and Senate voicing strong support for funding the Community Development Financial Institutions Fund at $248 million for Fiscal Year 2018.
Funding for the CDFI Fund was threatened with full elimination by the Trump Administration earlier this year, before Congress approved a larger appropriation than had previously been allocated.
In the letter, CUNA CEO Jim Nussle says CDFI funding helps consumers in their local communities, is a good investment by the federal government, and provides examples of two credit unions that have used CDFI funding to help grow their local markets.
Nussle notes that CDFIs are required to provide a 1:1 match for most of the awarded funds, which are offered on a competitive basis, and that the funding goes toward a number of small businesses.
“The CDFI Fund uses small amounts of federal dollars to leverage significant amounts of private and non-federal dollars, and has added a tremendous boost to the CDFI industry (which relies heavily upon private sector funds from corporations, individuals, religious institutions, and private foundations),” wrote Nussle.
As an example, he cites work done by Appalachian Community FCU in Johnson City, Tenn., a CDFI CU that secured a CDFI grant to assist over 200 families in its community to become first-time home buyers, and work done by St. Louis (Missouri) Community Credit Union, a CDFI that has helped to launch a “Sure Rides” program to create economic impact through mobility. Nussle said SLCCU’s $849,000 grant was leveraged into $22.7 million in auto loans.
“Fully funding the CDFI Fund at $248 million is a good investment by the federal government,” said Nussle. “Good paying jobs lead to more tax revenue and less dependence on the federal social safety net.”
A full copy of the letter can be found in CUToday.info’s The gov.