Biden proposes investments in CDFIs, affordable housing, small biz
President Joe Biden Thursday released his proposed 2024 budget, which includes provisions aimed at strengthening communities, addressing tax issues, and bolstering protections against global threats. The proposed budget totals more than $10 trillion over the 2024-2033 period, and the administration claims it would reduce the nation’s deficit by almost $3 trillion over the next decade.
Of note for credit unions, the proposal would boost funding for the Small Business Administration (SBA), the Community Development Financial Institution (CDFI) Fund, and the Department of Housing and Urban Development (HUD) compared to 2023 enacted levels. NAFCU will continue to advocate for funding for agencies and programs that allow credit unions to meet members' needs and support their communities.
The proposal provides $341 million to the Treasury's CDFI Fund – a 5 percent increase from the 2023 enacted level. The budget proposal notes the CDFI Fund “provides historically underserved and often low-income communities access to credit, capital, and financial support to grow businesses, increase affordable housing, and reinforce healthy neighborhood development.” It also includes a $10 million subsidy to the NAFCU-supported CDFI Bond Guarantee Program to address the shortage of long-term affordable credit for development projects in disadvantaged communities, as well as $4 million for the Community Development Revolving Loan Fund.
NAFCU is active on CDFI issues to ensure credit unions can take advantage of the program to better serve their communities. The association is currently engaged with fund administrators, lawmakers, and regulators as the CDFI Fund considers changes to the CDFI Certification Application and process. NAFCU has shared concerns about the proposed changes to CDFI certification standards that could restrict access to the fund and its resources, and has advocated for increased transparency and communication.
Biden’s budget proposal authorizes $58 billion for lending through the SBA’s flagship 7(a) loan guarantee, 504 loan, Small Business Investment Company (SBIC), and Microloan programs in an effort to address the need for greater access to affordable capital, especially in underserved communities.
NAFCU is currently engaged with the SBA as it considers changes to several of its loan programs, warning that proposed changes and allowing fintechs greater access to make SBA-guaranteed loans could introduce risks and increase fraud.
Within the 15 percent proposed increased funding for the Treasury Department is $229 million for the Financial Crimes Enforcement Network (FinCEN) to support the launch of the Beneficial Ownership Secure System and invest in efforts to enhance corporate financial accountability. NAFCU last month offered recommendations to FinCEN on ways to strengthen beneficial ownership information access and safeguards.
In addition, the budget increases investments in programs to combat money laundering and terrorist financing. Throughout Biden’s budget proposal are provisions to enhance the nation’s cybersecurity and protect systems from attacks.
The budget proposes $73.3 billion for HUD to increase affordable housing supply, expand rental assistance, and strengthen communities facing underinvestment. The budget notes the Federal Housing Administration’s (FHA) annual mortgage insurance premium (MIP) reduction – expected to save FHA-borrowers roughly $800 in the first year of their mortgage loan – as part of its effort to make homeownership more affordable. In addition, the budget includes funds for the HOME down payment assistance pilot and for FHA to increase the availability of its small balance mortgages.
NAFCU will continue to advocate for policies that promote sustainable and equitable access to affordable housing and ensure the credit union industry’s best interests in the housing finance system.
Add to Calendar 2023-03-20 14:00:00 2023-03-20 14:00:00 Liquidity Considerations in Light of Silicon Valley Bank As the financial industry is discussing the ramifications of the recent closings of Silicon Valley Bank (SVB) and Signature Bank, many are asking themselves, “Where do we go from here?” This is an opportunity to take a step back and evaluate your institution’s next steps in this rapidly changing environment. The combination of mindset, critical thinking, and an understanding of the potential impact of different scenarios has increased in importance. In this webinar, Liquidity Considerations in Light of Silicon Valley Bank, your questions and concerns will be addressed about short-term and long-term liquidity management and analysis, opportunities and risks that could arise from member actions, and the importance of maintaining trust and communication with your members throughout this wild ride. Key Takeaways Heighten your thought process and strategies regarding the position of your credit union and considerations around potential actions Understand how evaluating your liquidity, ranging from expectations to stress events, from 3 levels helps you gain perspective on how much you may directly control, versus liquidity that is reliant on others Explore examples of critical thinking around the potential outcomes that you may want to examine FREE FOR ALL Register NowOne registration gives your entire team access to the live webinar and on-demand recording until March 20, 2023.Go to the Online Training Center to access the webinar after purchase » Who Should Attend C-suite Executive vice presidents Education Credits NCRMs will receive 1.0 CEUs for participating in this webinar Web NAFCU firstname.lastname@example.org America/New_York public
Liquidity Considerations in Light of Silicon Valley Bank
Advertising "Free" Accounts with a Fee for Paper Statements
Add to Calendar 2023-03-16 14:00:00 2023-03-16 14:00:00 AI Lending Partnerships and the Power of Efficiency About The Webinar How one credit union is balancing profitability and member growth with personal loans. Discover how your credit union can tap into personal lending opportunities to gain new, creditworthy members safely, even in periods of economic volatility. This session will dive deep into how a Chief Lending Officer is growing members in Arizona and proactively managing their return targets. Attendees will hear about: Attracting new members for long-term growth with a digital-first experience The benefits of AI-driven lending, including more accurate credit decisioning How Vantage West is navigating a successful partnership with a fintech How Upstart has helped Vantage West lend more inclusively as a CDFI Web NAFCU email@example.com America/New_York public
AI Lending Partnerships and the Power of Efficiency
Add to Calendar 2023-03-15 14:00:00 2023-03-15 14:00:00 Exponential Fraud Exposure: Reg II Awareness About the Webinar On this webinar we explore the impact of Reg II on card-not-present fraud. We’ll hear from Ann Davidson, VP of Risk Consulting, at Allied Solutions and a first-hand account of the implications attached to this regulation from Tracie Wilcox, President and CEO of On Tap Credit Union. We will examine how the timeline, with an effective date of July 1, 2023, will likely create unintentional negative consequences for consumers and credit unions as they’re forced to reprioritize this implementation over other consumer-oriented and security-focused improvements. This webinar will provide valuable insights into the challenges and potential solutions for navigating the new regulation. Attendees will walk away equipped with: An overview of Reg II and the upcoming implementation deadline. Steps to take to mitigate exposure. Examples of the risks on the horizon. Ann and Tracie are looking forward to sharing their vast experience and knowledge with the NAFCU community on March 15th. WATCH NOW Web NAFCU firstname.lastname@example.org America/New_York public
Exponential Fraud Exposure: Reg II Awareness
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