Congress confirms inclusion of $12 billion in CDFI funding in new stimulus bill
Join Inclusiv for a CDFI update call on Wednesday at 1:30pm ET
NEW YORK, NY (December 22, 2020) — Last night, Congressional leaders confirmed the inclusion of $12 billion in funding for Community Development Financial Institutions (CDFIs) and Minority Designated Institutions (MDIs) as part of its $900 billion COVID-19 emergency stimulus funding package, ensuring resources will be directed to some of the communities hardest hit by the pandemic. The $12 billion directed to CDFIs and MDIs consists of:
- $3 billion in emergency support through the CDFI Fund to provide grants and other financial and technical assistance in the form of $1.25 billion in Immediate Support for the current fiscal year, and $1.75 billion – available until it is expended – for supporting Minority Lending Institutions
- $9 billion Emergency Capital Investment Program administered by the Department of Treasury to provide low-cost, long-term capital investments to MDIs and CDFI depositories
This is an unprecedented achievement for CDFIs and MDIs and is the culmination of 9 months of persistent advocacy by credit unions, Inclusiv and our industry partners on behalf of the low- and moderate-income communities we have continued to serve during this crisis. From regular meetings with Senators and members of the House Finance Committee, to submitting comment letters on behalf of CDFIs and MDIs in reference to proposed stimulus bills, Inclusiv has ensured our members were well-represented during these discussions.
This funding seeks to expand the capacity of the nearly 800 MDI and CDFI credit unions that serve minority and financially underserved communities across the country. These institutions have $170 billion in combined assets and serve 16 million members through a range of innovative products and services, including outsized participation in the Paycheck Protection Program. These institutions are vital to the communities they serve, and yet multiple studies – including Inclusiv’s own – show these institutions have been consistently overlooked in investment mirroring the communities they serve. The new funding package is a step in correcting this injustice.
Inclusiv is thrilled with the inclusion of $12 billion for CDFIs and MDIs! Our movement continues to stand united, acting as financial first responders and delivering real impact to our communities in times of crisis.
We expect some of these programs will be implemented rather quickly. We ask you to get ready to act as we work on the details with the CDFI Fund and the US Treasury Department. We ask you to share your credit union’s Point of Contact to ensure the information we’ll be sharing is acted upon. Please send that information to Jules Epstein-Hebert at firstname.lastname@example.org.
Inclusiv will be hosting a special call this Wednesday, December 23 at 1:30pm ET. Please follow this link to register:
Thank you to the CDFI Coalition, our members and industry partners for your determination in keeping our message alive throughout the long process to reach this point. Inclusiv is grateful for the engagement and unwavering leadership by House leaders Pelosi and Waters and the bipartisan Senate leadership who ensured that CDFIs and MDIs were included in this funding package.
We will be working over the coming weeks to ensure as many Inclusiv credit unions as possible may access these resources.
COVID-19 Emergency Relief Package – Top-Line Summary
CDFI MDI Stimulus
Founded in 1974, Inclusiv empowers its member credit unions to advance financial inclusion for everyone through advocacy, education, technology, and investment initiatives designed to create wealth-building opportunities in communities excluded from the financial mainstream.
Inclusiv was instrumental in establishing the Community Development Financial Institutions (CDFI) Fund in 1994, is a certified CDFI intermediary, and a permanent member of the national CDFI Coalition.
As financial cooperatives committed to investing in strong and healthy communities, credit unions are vehicles for change, deploying capital to support local community solutions to seemingly intractable problems. These lenders are now working to fight for climate justice and addressing the disproportionately high energy costs that low-income communities and communities of color face across the nation.