The National Association of Federally-Insured Credit Unions (NAFCU) today wrote to House and Senate leaders in support of a bipartisan, consolidated appropriations package under consideration that, if enacted, would provide $248 million in funding sought by NAFCU for Treasury's Community Development Financial Institutions (CDFI) Fund and $2 million for the National Credit Union Administration (NCUA) Community Development Revolving Loan Fund (CDRLF).
In her letter, NAFCU Executive Vice President of Government Affairs and General Counsel Carrie Hunt notes that 287 credit unions were certified as CDFIs as of this Jan. 31. She adds that about 27 percent of all CDFI-certified financial institutions are credit unions and that CDFI credit unions hold more than 50 percent of total CDFI assets.
She calls CDFI credit unions "critical partners" in the mission of the CDFI Fund. "Over the past two years, CDFI credit unions received roughly $70 million in grant funding to aid in their efforts to offer financial services to their low- and moderate-income members," she notes. "Without the CDFI grant program, many CDFI credit unions would not have been able offer new products and loans that provide financial stability for members and their families."
The full text of Hunt's letter follows:
May 1, 2017
The Honorable Mitch McConnell
Majority Leader
United States Senate
Washington, D.C. 20510
The Honorable Chuck Schumer
Minority Leader
United States Senate
Washington, D.C. 20510
The Honorable Paul Ryan
Speaker
U.S. House of Representatives
Washington, D.C. 20515
The Honorable Nancy Pelosi
Minority Leader
U.S. House of Representatives
Washington, D.C. 20515
RE: Support for Community Development Financial Institutions (CDFI) Program Funding in the "Consolidated Appropriations Act, 2017"
Dear Leader McConnell, Leader Schumer, Speaker Ryan, and Leader Pelosi:
On behalf of the National Association of Federally-Insured Credit Unions (NAFCU), the only national trade association focusing exclusively on federal issues affecting the nation’s federally-insured credit unions, I am writing in support of the "Consolidated Appropriations Act, 2017" and its $248 million funding for the Community Development Financial Institutions (CDFI) fund and the $2 million funding for the National Credit Union Administration's Community Development Revolving Loan Fund.
As of January 31, 2017, there were 287 credit unions certified as CDFIs. Representing approximately 27 percent of the total number of certified institutions, CDFI certified credit unions hold more than 50 percent of total CDFI assets. Clearly, CDFI credit unions are critical partners in the CDFI Fund’s mission. In recognition of this importance, and in exploring ways to enable even more credit unions to be recognized as CDFIs, NCUA, the CDFI Fund and Treasury entered into a trilateral Memorandum of Understanding (MOU) in January 2016. A significant component of the MOU included the introduction of a streamlined CDFI application for credit unions, paving the path for more credit unions to seek the designation.
Because they are not-for-profit, cooperative financial institutions, credit unions are focused on providing financial services that are in the best interest of their members. Since CDFI credit unions predominantly serve low-income areas and other target markets, CDFI credit unions are often the only financial services option for consumers that live paycheck to paycheck. The CDFI Fund grant program helps credit unions serve communities and consumers that large banks do not focus on.
Over the past two years, CDFI credit unions received roughly $70 million in grant funding to aid in their efforts to offer financial services to their low- and moderate-income members. Without the CDFI grant program, many CDFI credit unions would not have been able offer new products and loans that provide financial stability for members and their families.
It is with this in mind that we write in support of the "Consolidated Appropriations Act, 2017" and the accompanying report language that will help encourage regulatory relief. Should you have any questions or require any additional information, please do not hesitate to contact me or NAFCU's Vice President of Legislative Affairs Brad Thaler at (703) 842-2204, or bthaler@nafcu.org.
Sincerely,
Carrie R. Hunt
Executive Vice President of Government Affairs & General Counsel
cc: Members of the United States Senate
Members of the U.S. House of Representatives