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Senate Approves Funding Levels with FSGG Bill
Thursday, August 2, 2018 7:00 AM

The Senate voted yesterday to pass the Financial Services and General Government (FSGG) Appropriations Act for Fiscal Year 2019. Advocacy efforts by CUNA and leagues led to an increase of the CDFI funding level to $248 million in the final bill.

“We thank the Senate for passing the bill and for the attention of Senate appropriators to call for full funding for several important funds that credit unions are able to leverage to better serve their members and communities,” said CUNA President/CEO Jim Nussle.  

Community Development Financial Institutions (CDFIs), such as Community Development Credit Unions, are charged with supplying low-income, distressed communities with traditional banking services such as savings accounts and personal loans and offering individuals the tools needed to become self-sufficient stakeholders in their own future. The CDFI Fund helps revitalize communities by using small amounts of federal dollars to leverage significant amounts of private and non-federal dollars. 

“We’re pleased that the Senate approved full funding for the CDFI and other programs important to credit unions,” said Cornerstone Credit Union League Chief Advocacy Officer Jim Phelps. “Cornerstone’s lobby team has been working in tandem with CUNA’s staff to educate congressional appropriators on the economic benefits of these programs.” 

The bill would also provide a funding level of $2 million for the Community Development Revolving Loan Fund (CFRLF). The CDRLF, a revolving loan and technical assistance program, gives credit unions the ability to serve underserved communities.  

Additional funding includes:  

  • A loan volume cap of $30 billion for the Small Business Administration’s (SBA) 7(a) program, which allows the government to guarantee up to 85% of loans, with the guaranteed portion not counting against credit unions’ cap on member business lending; and this amount is $1 billion more than Fiscal Year 2018’s enacted level of $29 billion; and 
      
  • A loan volume cap of $7.5 billion for the SBA’s 504 loan program, which is used for long-term, fixed-rate financing on major fixed assets, such as equipment and real estate.