President signs stimulus bill into law
Inludes $12 billion for CDFIs and MDIs
NEW YORK, NY (December 28, 2020) — Last night, the $900 billion COVID-19 Emergency Relief Package was signed into law by President Trump averting a government shutdown. The package includes $12 billion in funding for Community Development Financial Institutions (CDFIs) and Minority Designated Institutions (MDIs), 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
Inclusiv has been in communications with the NCUA, the CDFI Fund and the Biden transition team to share the CDCU perspective as they shape the processes to deploy this funding. We’ll be sharing details as they come available.
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. If you haven’t already done so, 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.
Last week, Inclusiv hosted a special call to discuss the implications of the relief package for credit unions, ending with a Q&A session. View the recording by clicking the link below:
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.