CDRLF Gets a Boost, CLF Remains at $1.5B

WASHINGTON-For the first time since its inception, NCUA’s Community Development Revolving Loan Fund could receive an infusion of more than $1 million from Congress. Prior to Congress’ adjournment a compromise omnibus appropriations bill, which has yet to be passed in either chamber of Congress, was worked out that included $1.2 million in funding for the CDRLF, up from the typical $1 million. Of those funds $1 million has been earmarked for grants and $200,000 for loans. “I’m ecstatic about the increase in CDRLF funding,” NCUA Chairman Dennis Dollar exclaimed. He explained that since he has become chairman, the agency has sent a letter to members of Congress when a credit union in their district receives a grant from the CDRLF, which has raised the program’s profile on Capitol Hill. He added that sometimes the lawmaker’s office will ask if they can call the credit union to notify them of the funds. CDRLF grants are typically under a few thousand dollars and loans are under $100,000, Dollar said. This year, NCUA had to turn down nearly $1 million in grants for lack of funds. He said he hopes the publicity of the greater appropriation will bring more requests. Dollar recalled one credit union CEO he talked to who had received a CDRLF grant. She said that without the $3,000 grant the small credit union received, they could never have sent two staffers to a week-long lending school. The CEO said the credit union had already made 15-times the amount of the grant on their loan program. She promised to write her senator, Debbie Stabenow (D-Mich.), to make her aware of the good the CDRLF funds do. Credit unions’ Central Liquidity Facility was provided the same $1.5 billion borrowing authority that it has had since Y2K. Additionally, the bill provided for $61 million in funding for Treasury’s Community Development Financial Institutions Fund (See news brief on page.12). -