An American flag flies outside the Capitol building in Washington, D.C., U.S. Photographer: Al Drago/Bloomberg
In a 220-207 vote on the floor of the U.S. House of Representatives, a package of six fiscal year 2023 federal funding bills passed to move on to the appropriations process. Included in the package were funding levels for the Community Development Financial Institutions (CDFI) Fund and the Community Development Revolving Loan Fund (CDRLF).
The portion most important to credit unions was the 2023 Financial Services and General Government funding, which included:
- $336 million for the CDFI Fund, which makes capital grants, equity investments and awards for technical assistance to certified CDFIs.
- $4 million for the CDRLF, which funds a revolving loan program and a technical assistance program.
In a statement, CUNA President/CEO Jim Nussle wrote, "This funding will help to combat the lingering effects of the COVID-19 emergency on the ability of small businesses and individuals to access credit and basic financial services."
While the overall budget for the 2023 Financial Services and General Government portion is $4.3 billion, 17% higher than fiscal year 2022, CUNA and NAFCU were pushing for at least a $6 million budget for the CDRLF.
The other concern, according to NAFCU Vice President of Legislative Affairs Brad Thaler, "is the CDFI Fund is making changes to the certification process that will likely make it more difficult for small and minority depository institution (MDI) credit unions to become certified."
In a letter to House leadership, Thaler addressed specific concerns, including:
- A number of credit unions have reported long delays stemming over 12 months to respond to their applications for certification.
- Several credit unions currently no longer qualify for the CDFI Fund and have subsequently lost their status as a CDFI without any chance to take remedial action and re-qualify.
- Changes being made to the CDFI Fund certification process will likely make it more difficult for small and MDI credit unions to become certified.
"This would seem to be contrary to the steps Congress is taking to try to expand the use of CDFIs to help communities in need," Thaler wrote. "We encourage you to examine this issue and urge the CDFI Fund to address these concerns, such as instituting a cure period for CDFIs that are in danger of losing certification and directing the CDFI Fund and functional regulators, such as the NCUA, to work more closely to reduce burdens on CDFI institutions."
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Michael Ogden
Editor-in-Chief at CU Times. To connect, email at [email protected]. As Editor-in-Chief of CU Times since 2016, Michael Ogden has led the editorial team in all aspects of content strategy and execution, including the creation of the publication’s exclusive and proprietary research database of the credit union industry’s economic landscape. Under Michael’s leadership, CU Times has successfully shifted to an all-digital editorial product with new focuses on the payments, fraud, lending and regulatory beats. Most recently, he introduced a data-focused editorial product for subscribers that breaks down credit union issues into hard data, allowing for a deeper and more factual narrative for readers. In 2024, he launched the "Shared Accounts With CU Times" podcast, which offers a fresh, inside-the-newsroom perspective through interviews with leaders from the credit union industry and the regulatory world. He dives into pressing credit union issues, while revealing the personalities working behind-the-scenes to push the credit union world forward. His background includes years as a radio and TV anchor/reporter and a public relations and digital/social media manager, where he covered the food and music industries, as well as cooperatives and credit unions. Over the years, he has launched numerous exclusive video and podcast series, including a successful series of interactive backstage interviews with musicians at music festivals, showcasing his social media and live streaming production skills.
