Biden proposes boosting CDFI, SBA, FinCEN funding

President Joe Biden Friday released his fiscal year 2022 discretionary funding request, which the administration indicated “outlines a strategy for reinvesting in the foundations of our country’s resilience and strength.” Of note for credit unions, the proposal would boost funding for the Small Business Administration (SBA) and Community Development Financial Institution (CDFI) Fund compared to the 2021 enacted levels.

CDFI Fund

The proposal provides $330 million to the Treasury’s CDFI Fund – an increase of 22.2 percent from the 2021 enacted level (excluding coronavirus-related emergency funding). NAFCU had called for additional CDFI support during last year’s funding negotiations. The NCUA’s Community Development Revolving Loan Fund (CDRLF) was not included in the budget overview.

The CDFI funding is cited as supporting opportunities for minority-owned businesses, affordable housing development, and community revitalization projects.

 

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