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CUNA urges senate financial services subcommittee to maintain funding for CDFIF
(May 20, 2014) — Today, the Credit Union National Association (CUNA) sent a letter to Senate Appropriations Committee Subcommittee on Financial Services Chairman Tom Udall (D-NM) and Ranking Member Mike Johanns (R-NE) urging the committee to maintain current level funding to the Community Development Financial Institutions Fund.
Below is the text of the letter to the Senate Appropriations Committee Subcommittee on Financial Services:
The Honorable Tom Udall
Chairman
Subcommittee on Financial Services
Committee on Appropriations
Room S 128, The Capitol
Washington, DC 20510
The Honorable Mike Johanns
Ranking Member
Subcommittee on Financial Services
Committee on Appropriations
Room S 128, The Capitol
Washington, DC 20510
Dear Chairman Udall and Ranking Member Johanns:
On behalf of the Credit Union National Association (CUNA), I am writing to encourage you to maintain current level funding to the Community Development Financial Institutions Fund (CDFIF). CUNA is the largest credit union advocacy organization in the United States, representing America’s 6,700 state and federally chartered credit unions and their 99 million members.
The CDFIF makes capital grants, equity investments and awards for technical assistance to community development financial institutions (CDFIs). Examples of CDFIs include community development credit unions (CDCUs) and microenterprise loan funds. CDFIs finance community development initiatives such as small businesses, community facilities, and low-income housing. CDFI-funded credit unions offer alternatives to predatory payday lenders and check-cashing services. They also promote economic revitalization and community development in distressed communities.
The CDFIF uses small amounts of federal dollars to leverage significant amounts of private and non-federal dollars. Funded institutions supply low-income, distressed communities with traditional banking services such as savings accounts and personal loans, offering individuals the tools needed to become self-sufficient stakeholders in their own future.
H.R.3547, the Consolidated Appropriations Act for fiscal year 2014, funded the CDFIF at $226 million. On behalf of America’s credit unions and their members, I ask for your consideration and leadership in ensuring that the CDFIF is appropriately funded so that these programs can continue to help credit unions provide credit, investment capital, and financial services to distressed communities.
Best regards,
Bill Cheney
President and CEO