The Credit Union National Association on Tuesday endorsed the Biden Administration’s FY22 budget requests for the Community Development Financial Institutions program and the National Credit Union Administration’s Community Development Revolving Loan Fund program.
In a letter to Senate appropriators, CUNA President/CEO Jim Nussle said that the trade group “strongly supports” the Biden request for $320 million for the CDFI program and $2 million for the revolving loan fund program.
The Biden plan represents a 22.2% increase for the CDFI program over FY21 spending and a $500,000 boost for the NCUA’s revolving loan fund program.
“The CDFI Fund uses small amounts of federal dollars to leverage significant amounts of private and non-federal dollars and has added a tremendous boost to the CDFI industry,” Nussle wrote in his letter. He noted that the CDFI fund serves many of the most economically distressed communities in the country. “Fully funding the CDFI Fund is a good investment by the federal government,” he wrote.
Nussle wrote that the revolving loan fund’s technical assistance grants have been used to help credit unions expand their digital services and to help small credit unions fight fraud by embedding chips in their credit and debit cards.
He also said some grants have been used to open new branches in underserved area. “In an age of rapid consolidation in the credit union and small bank sector, it is vital to allow these small credit unions to compete and not have to close shop or merge with a larger financial institution that may not know the needs of the members of these small credit unions,” he wrote.
He said that the CDRLF usually receives funding requests that far exceed the available funds.
In each of their budgets, the Trump Administration proposed eliminating the CDFI program and last year, Senate appropriators included no funding for the revolving loan fund program in their version of the annual funding measure.