NCUA Submits Funding Request for CDRLF, CLF

WASHINGTON-NCUA Chairman JoAnn Johnson submitted testimony to Congress last week requesting $950,000 for the Community Development Revolving Loan Fund and a $1.5 billion borrowing authority for the Central Liquidity Facility. The CDRLF provides low-cost loans and grants to low-income designated credit unions. Most years, NCUA has received $1 million in appropriations for the fund except in 2003 when the fund received $1.2 million. However, with the federal government tightening its purse strings, the agency is asking for less. “NCUA remains committed in our efforts to promote and facilitate the extension of affordable financial services to individuals and communities through America. “Low-income” designated credit unions use the loans to further community development by providing funding for member loan demand, additional member services and increased credit union capacity to serve members and the community,” Johnson stated. “The grants are used for verifiable and needs based technical assistance purposes by low-income designated credit unions.” She added, “NCUA views the CDRLF as a resource for incubation monies for low-income designated credit unions to initiate or develop services for members, thereby providing further opportunities to self-fund or obtain more substantial funding.” Johnson also requested the usual $1.5 billion ceiling for the CLF’s borrowing authority and $323,000 in administrative expenses for fiscal year 2006. The credit union trade associations have been unsuccessful in getting the cap repealed permanently, despite the fact it does not technically receive any funds through congressional appropriations. “The purpose of the CLF is to improve general financial stability by meeting the liquidity needs of credit unions and thereby encourage savings, support consumer and mortgage lending and provide basic financial resources to all segments of the economy,” the chairman explained. [email protected]