TACOMA, Wash.–In response to the coronavirus pandemic, CU Strategic Planning has sent a letter to members of both the Senate and House appropriations committee urging a significant increase in the already-scheduled April 21 grant funding round for the Community Development Financial Institution (CDFI) Fund.
The company, which writes more successful CDFI grant applications for credit unions than any other, told Congress an emergency CDFI appropriation that would be particularly open to credit unions that are positioned to immediately distribute the funds.
The company is also urging a $5 million appropriation for NCUA’s Community Development Revolving Loan Fund (CDRLF
In its letter, CU Strategic Planning noted Congress has been seeking “ready to implement” ideas to breathe life back into the economy, and said credit unions are ideally suited to do just that.
The Recommendations
CU Strategic Planning urged Congress to:
- Immediately more than double CDFI funding from $262 million to $600 million for the April 21 grant funding program. Doing so, the company said, should lead to higher awards for CDFI’s applying on April 21 from $1 million back to $2 million, which would significantly increase CDFI credit union’s ability to fund small dollar consumer, transportation, home ownership, and micro and small business lending to low- to moderate-income families; and further create larger numbers of CDFI credit union winners, increasing the capacity of credit unions lending into rural, suburban and urban communities, “breaking through the artificial ceiling for credit unions in this vital program.”
- Immediately fund a special Emergency Round of CDFI Funding of $500 million targeted to lending institutions that can demonstrate the capacity to increase small dollar consumer, transportation, small business and home mortgage lending. “This program should target CDFI’s and specifically CDFI credit unions that have immediate capacity and implementation ready programs and initiatives on a rolling basis over the next six months,” CU Strategic Planning said.
- Immediately fund $5 million for NCUA’s Community Development Revolving Loan Fund.