Treasury Releases Long-Delayed CDFI Funds Before Sept. 30 Expiration
By CU Today Staff —
WASHINGTON—The Treasury Department has opened the application process for the remaining congressionally authorized funding under its Community Development Financial Institutions (CDFI) Fund, giving lenders just three months to compete for millions of dollars that expire Sept. 30, POLITICO reported.
According to POLITICO, applications for the Bank Enterprise Award (BEA) program are due July 31, while applications for the Small Dollar Loan (SDL) program must be submitted by July 30.
The funding includes $49 million for the BEA and SDL programs, along with $500 million in bond guarantee authority that provides long-term, below-market financing to eligible community development financial institutions, POLITICO reported.
Industry groups told POLITICO the delayed release of the funding notices has compressed the application timeline after months of uncertainty. Jeannine Jacokes, CEO of the Community Development Bankers Association, said the Office of Management and Budget's delay in releasing the notices placed a significant burden on Treasury, although she said the department appears committed to carrying out Congress' funding directives.
According to POLITICO, lawmakers from both parties have pressed the Trump Administration to release the CDFI funding, which has been delayed despite Congress appropriating the money. Treasury still has roughly $1 billion in unobligated CDFI funding awaiting distribution, including another $240 million under the CDFI Program for which applications have already been submitted but awards have not yet been announced, POLITICO reported.
Defense Credit Union Council Emphasizes Need
“DCUC welcomes Treasury and the CDFI Fund taking this important step to open applications for critical community development resources. For military-serving and CDFI-certified credit unions, predictable access to CDFI Fund programs is not a paperwork exercise; it directly supports emergency small-dollar loans, financial counseling, affordable credit, and investment in communities surrounding our nation’s military installations," said DCUC Chief Advocacy Officer Jason Stverak. "As DCUC has said consistently, financial readiness is mission readiness. These resources help credit unions serve junior enlisted servicemembers, veterans, military families, and underserved communities that too often have limited access to responsible financial services. The release of applications is necessary progress, but it must be followed by clear guidance, workable compliance expectations, and prompt award and disbursement timelines."
Stverak stressed program integrity and mission impact are not competing goals.
"Treasury should administer these funds in a way that protects taxpayer dollars without creating unnecessary delays or barriers for smaller, mission-driven credit unions. DCUC will continue working with Treasury, Congress, and industry partners to ensure CDFI resources reach the institutions and communities they were intended to serve," Stverak said.
Originally reported by CU Today.