WASHINGTON—Ahead of a House Financial Services subcommittee hearing examining the challenges that women- and minority-owned businesses may face when accessing capital and financial services during the pandemic, NAFCU offered support for the subcommittee's efforts to address those issues.
“As we have shared with you before, credit unions are proud of their record of diversity and commitment to helping the portions of their communities that are most in need with high-quality financial products and services,” wrote Brad Thaler, NAFCU vice president of legislative affairs.
Thaler noted that there are 526 federally insured minority depository institution (MDI) credit unions and 292 credit unions that are designated community development financial institutions (CDFIs). He stressed the importance of “ensuring that these institutions have the resources they need to survive and serve their members during these challenging times.”
Specific Requests
Specifically, Thaler asked the subcommittee to include additional set asides in future relief packages specifically for CDFIs and MDIs, similar to what was included in the House’s HEROES Act.
Thaler also urged the subcommittee to consider measures to make it easier for credit unions to become a CDFI and called for an increase in funding for the NCUA’s Community Development Revolving Loan Fund (CDRLF) program.
“NCUA Board Member Todd Harper has specifically called for at least $10 million more for grants in 2020 to help low-income credit unions,” wrote Thaler. “Increasing these grants can help ensure that these credit unions have work-from-home infrastructure in place that is appropriately secure during social distancing measures.”
Suggested Amendment
In addition, Thaler called on Congress to consider amending the Federal Credit Union Act to allow all credit unions to add underserved areas to their fields of membership.
“Currently, only multiple common bond federal credit unions are permitted to add underserved areas to their fields of membership,” noted Thaler. “Too many Americans are unbanked, underbanked or underserved by financial institutions, and credit unions stand ready to help with financial literacy education and access to loans and other financial products.”