March 20, 2023

NAFCU-backed CDFI bill introduced in Senate

ColumnA group of bipartisan lawmakers led by Senate Housing, Transportation, and Community Development Subcommittee Chair Tina Smith, D-Minn., and Ranking Member Mike Rounds, R-S.D., last week introduced the CDFI Bond Guarantee Program Improvement Act. This NAFCU-supported legislation would spur economic development in underserved, economically distressed areas. It would also strengthen community development financial institutions (CDFIs), including credit unions’, ability to serve these communities.

In a letter of support, NAFCU Vice President of Legislative Affairs Brad Thaler wrote “[m]any credit unions are also CDFIs, and as such are invaluable resources for the underserved communities where they are located. Congress has long recognized the importance of CDFIs and increased funding for both the CDFI Fund and the Community Development Revolving Loan Fund.”

Thaler also added that the legislation, which would reduce the minimum loan amount, “would have an immediate and positive impact on CDFIs and the communities they serve.”

Read the letter. NAFCU will monitor the legislation and continue to urge Congress to support CDFIs and credit unions.