WASHINGTON—As the threat from the coronavirus pandemic continues to spared, CUNA is calling on Congress to increase CDFI and CDRLF funds, while NAFCU has sent a letter to the Trump Administration and Congress outlining how CUs prioritize the health and safety of members.
CUNA sent a letter to House and Senate Appropriations Committee leadership in response to emergency legislation to combat the effects of the COVID-19 emergency.
In the letter, CUNA recommends that the Community Development Financial Institutions (CDFI) Fund and the Community Development Revolving Loan Fund (CDRLF) be given an emergency infusion of funds, $300 million and $3 million respectively, separate and apart from fiscal year 2021 funding.
“Both the Community Development Financial Institutions (CDFI) Fund and the Community Development Revolving Loan Fund (CDRLF) are both designed to help the types of community-based financial institutions, like credit unions, that are perfectly positioned to receive this funding the quickest and then turn it around and provide emergency financial assistance to the people and small businesses that need it the most,” wrote CUNA President/CEO Jim Nussle. “Credit unions have a long history of providing low-interest loans and other types of financial assistance to individuals and small businesses during government shutdowns and natural disasters.”
CUNA added the emergency funding request is both a good investment and fiscally prudent. The letter emphasizes the unique position that credit unions are in to help members in need to make a mortgage payment or receive a small loan to pay their employees.
NAFCU Response
Meanwhile, how credit unions are prioritizing the health and safety of members and employees and providing financial assistance in the wake of the coronavirus, as well as how lawmakers can strengthen these efforts, was shared by NAFCU in letters to President Donald Trump and Congress.
The letters from NAFCU President and CEO Dan Berger were also in response to a request from Democratic members of the Senate Banking Committee asking how financial trade groups and member institutions are supporting consumers as the threat of the virus increases.
"Similar to the immediate response we saw when credit unions stepped up to help members during the government shutdown, we are pleased to report that credit unions across the nation are working to proactively assist their members that are being impacted by COVID-19 uncertainty," Berger wrote.
Berger outlined steps credit unions provide to members, such as financial assistance through the waiving of fees, low- or no-interest loans, loan modifications, and more. In addition, as credit unions frequently work with members on an individual basis to find the right solution for their needs, Berger asked Congress to encourage regulators not to penalize institutions for these efforts during examinations.
Policy Concerns
On the policy side, Berger urged the President and lawmakers to support legislative efforts that would allow credit unions to better address coronavirus concerns and similar situations in the future, including:
- Raising the outdated limit on Federal Reserve Regulation D transfers
- Allowing all credit unions to add underserved areas to their fields of membership
- Modernizing outdated governance provisions included in the Federal Credit Union Act, including those that require in-person member meetings
- Providing NCUA with increased flexibility for loan maturity limits
- Including credit unions and associations in any relief efforts, such as payroll tax relief