CUNA supports bill to establish $2B CDFI Crisis Fund
WASHINGTON, DC (August 5, 2020) — Credit Union National Association (CUNA) President/CEO Jim Nussle released the following statement after Sen. Brian Schatz (D-Hawaii) introduced a bill Tuesday that would create a $2 billion Community Development Institutions (CDFI) crisis fund to help with pandemic recovery and other emergencies:
“The pandemic and ensuing economic crisis has had a disproportionate impact on vulnerable communities and the policy response needs to recognize that more needs to be done to help these communities recover. Sen. Schatz’s legislation to create CDFI National Crisis Fund will ensure that CDFI credit unions can get much needed resources to our most vulnerable communities, reducing the pain experienced as the result of any number of disasters.”
Nussle sent a letter to Sen. Schatz in support of the legislation today.
The bill’s $2 billion CDFI Crisis Fund would serve as a complement to the Treasury’s CDFI Fund. It would be refilled as funds are deployed each year, and can be activated nationally or state-wide through two automatic triggers:
- For economic crisis: An increase in the state’s six-month moving average of the national unemployment rate (or if nationally, three-month moving average) by 0.50 percentage points or more relative to its low during the previous 12 months; or
- For natural disasters: A Stafford Act major disaster declaration where the Individual Assistance Program is activated. Funds are available state-wide if a majority of residents live in a declared county, or for affected county use otherwise.
As of July 13, there are 331 CDFI certified credit unions nationwide.
Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by 135 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit cuna.org. To find your nearest credit union, visit YourMoneyFurther.com.