January 07, 2022

NAFCU offers support for bipartisan bill that would strengthen CDFIs

CapitolNAFCU Vice President of Legislative Affairs Brad Thaler wrote to Housing, Transportation, and Community Development Subcommittee Chairwoman Tina Smith, D-Minn., and Ranking Member Mike Rounds, R-S.D., to thank them for the introduction of the CDFI Bond Guarantee Program Improvement Act. The newly introduced legislation aims to jumpstart economic development in economically distressed areas and address disparities in access to capital for underserved communities by strengthening and expanding community development financial institutions (CDFIs).

"Many credit unions are also CDFI’s, and as such are invaluable resources for the underserved areas they serve," wrote Thaler. "Congress has long recognized the importance of CDFIs and increased funding for both the CDFI Fund and the Community Development Revolving Loan Fund (CDRLF). In addition to these resources, the CDFI Bond Guarantee Program provides a valuable line of long-term capital to CDFIs through the Federal Financing Bank."

Thaler explained that the new legislation to reduce the minimum loan amount offered by the bond guarantee program would have an immediate and positive impact on CDFIs and the communities they serve.

The Senate Banking Committee Wednesday held a hearing to discuss how CDFIs support underserved communities where Chairwoman Smith detailed the importance of the bill.

View Thaler's full letter. NAFCU will monitor the legislation and continue to urge Congress to fully fund the CDFI and CDRLF, as they promote access to capital and local economic growth in low-income communities.