CUNA Supports Senate FSGG Bill with Full CDFI Funding

The Senate Appropriations sub-committee on financial services and general government (FSGG) passed its fiscal year 2019 bill Tuesday, which contains CUNA-supported full funding for the Treasury’s Community Development Financial Institutions (CDFI) Fund. CUNA and the state leagues have strongly supported full CDFI funding and successfully secured full funding during last year’s appropriations negotiations.

Certified CDFIs are able to use grants and awards from the CDFI Fund to build capacity, empowering them to grow, achieve organizational sustainability and drive community revitalization.

“We thank the Senate financial services and general government sub-committee for moving their legislation along with full funding for the Treasury’s CDFI Fund,” said CUNA President/CEO Jim Nussle. “Certified CDFIs, including credit unions, are able to turn the awards and grants from the fund to leverage significant amounts of private and non-federal dollars in support of vital community investments. CUNA will continue our advocacy to ensure these important funds remain available." 

Currently, credit unions represent 283 of the 1,079 certified CDFIs nationwide. Three New Jersey credit unions are certified as CDFIs: 1st Bergen FCU; New Community FCU; and North Jersey FCU. 

For the Small Business Loan Administration (SBA), the draft bill provides the maximum loan limit of $30 billion for the Section 7(a) loan program, a $1 million increase over fiscal year 2018.

Loans made under the SBA's 7(a) program are partially guaranteed by the government, and the government guaranteed portion of the loans do not count against a credit union's cap on member business lending.

The Senate Appropriations Committee is expected to mark up the FSGG bill Thursday, after which full text of the bill will become available to the public.

The House Appropriations Committee approved the House FSGG bill for fiscal year 2019 with $216 million for the CDFI Fund last week. It includes full funding for the SBA's 7(a) program.