WASHINGTON—Reps. Andy Barr (R-KY) and John Rose (R-TN) have sent a letter to CDFI Fund Director Jodie Harris regarding CDFI application delays and what they said has been a lack of communication, inconsistent cure periods, and more.
In their letter, Barr and Rose addressed concerns around the lack of communication following the CDFI Fund’s announcement that increased funding and paused acceptance of new CDFI Certification Applications and Target Market Modifications requests for six months to prepare to launch its new application process.
As CUToday.info has reported, CDFIs that do not submit their recertification application by Sept. 30, 2022, will have to wait until April 2023 to submit applications, causing an inability to retain the CDFI status and lose grant awards under federal programs.
‘Lack of Meaningful Communication’
“We believe that the CDFI Fund’s lack of meaningful communication and guidance is placing unreasonable requirements on CDFI-certified credit unions as it works towards unveiling a new application for all entities currently scheduled to launch in April 2023,” wrote the congressmen.
In addition, Barr and Rose recommended that to address multiple concerns regarding the high number of CDFI credit unions currently in a cure status that the Fund should develop a pathway that does not threaten termination of CDFI certifications. Instead, the two representatives said the Fund should also offer a provisional CDFI certification to any CDFI credit union which retained certification during the previous recertification year and has an application for recertification submitted by Sept. 30, 2022.
Would Allow for a Shift in Focus
“The provisional status will allow credit unions to continue serving their previously approved target markets, collect grants and awards, and complete Emergency Capital Investment Program (ECIP) loans through the completion of the application moratorium,” Barr and Rose stated. “This will permit both CDFIs and the Fund to shift focus to the new application process in 2023.
“The confusion and disruption for the entities eager to serve CDFI target markets is hurting Americans and small businesses struggling to overcome the economic devastation left in wake of the pandemic,” the letter concluded.