WASHINGTON—NAFCU wrote to Housing, Transportation, and Community Development Subcommittee Chairwoman Tina Smith (D-MN) and Ranking Member Mike Rounds (R-SD) in support of newly introduced legislation that aims to jumpstart economic development in economically distressed areas.
The legislation also seeks to address disparities in access to capital for underserved communities by strengthening and expanding community development financial institutions (CDFIs).
"Many credit unions are also CDFIs, and as such are invaluable resources for the underserved areas they serve," wrote Vice President of Legislative Affairs Brad Thaler. "Congress has long recognized the importance of CDFIs and increased funding for both the CDFI Fund and the Community Development Revolving Loan Fund (CDRLF). In addition to these resources, the CDFI Bond Guarantee Program provides a valuable line of long-term capital to CDFIs through the Federal Financing Bank."
Thaler suggested that the new legislation to reduce the minimum loan amount offered by the bond guarantee program would have an immediate and positive impact on CDFIs and the communities they serve.
The Senate Banking Committee last week held a hearing to discuss how CDFIs support underserved communities where Smith detailed the importance of the bill.