Senate FSGG Bill Passes Subcommittee with $251M for CDFI Fund

The Senate Appropriations financial services and general government subcommittee passed its fiscal year 2020 bill Thursday, a bill that funds the Treasury’s Community Development Financial Institutions (CDFI) Fund at $251 million, a $1 million raise from this fiscal year.

The fund makes capital grants, equity investments and awards for technical assistance to certified CDFIs. As of June 14, credit unions make up 274 of 1,061 certified CDFIs nationwide.

The full Senate Appropriations Committee is expected to mark-up the bill starting Thursday.

CUNA and the state leagues strongly support the House-passed version which provides $2 million for NCUA’s Community Development Revolving Loan Fund (CDRLF) and $300 million for Treasury’s Community Development Financial Institution (CDFI) Fund. CUNA will continue monitoring action in the Senate to ensure both programs are funded at the levels provide in the House version of the bill.

The NCUA has announced that federally-insured, low-income credit unions that wish to become certified Community Development Financial Institutions (CDFI) have until Oct. 5 to apply using the agency's streamlined qualification process.

This will be the final opportunity for credit unions to take advantage of the streamlined process in 2019.

The NCUA also advised credit unions to be aware of CDFI program changes implemented by the Treasury Department. Beginning with the FY2020 application round, credit unions must be certified as CDFIs no later than the date the Notice of Funds is published in the Federal Register. That notice is expected to be published in early 2020.

On Friday the NCUA announced that it has awarded $1.9 million in grants to help 155 low-income credit unions increase outreach to underserved communities, improve digital services and security, and train employees.

Grants ranging from $1,900 to $100,000 and were made to credit unions in 40 states and the District of Columbia. The awards were made in four categories: Underserved Outreach; Digital Services and Security; Training; and Counselor Certification.

Two New Jersey credit unions received grants, Mid-State FCU received $4,000 for Counselor Certifications and Jersey Central FCU received $8,000 under the Digital Services and Security category.  

The complete list of grant recipients and the amount awarded is available here.