CDBA wrote to the Chairman of the Board of Governors of the Federal Reserve System, Jerome Powell, to submit comments and recommendations on the proposed expansion of liquidity facilities to nonprofit entities released by the Board of Governors on June 15, 2020. While CDBA commends the agency for its willingness to step in to help financial institutions meet the credit needs of nonprofits during the crisis, the facilities must position the smaller nonprofits that comprise the great majority of the sector and are part of America’s “Main Street,” for long-term recovery.
The entire cohort of Alabama-based Community Development Financial Institutions (CDFIs) wrote to the Chairman of the U.S. Senate Appropriations Committee, Senator Richard Shelby, urging the Senator to support $1 billion in emergency funding for the Community Development Financial Institutions Fund (CDFI Fund) of the U.S. Department of the Treasury in the next economic stimulus package.
The Community Development Bankers Association (CDBA) and Inclusiv - the trade associations for CDFI banks and credit unions - wrote to Senate and House leadership regarding critical considerations for SBA Paycheck Protection Program reforms. To ensure federal funding meets the needs of small businesses and nonprofits, the associations urge that reform include measures such as reducing the limitations on using PPP loans for non-payroll expenses, updating the fee structure for PPP lenders, and authorizing more forgiveness flexibility.
CDBA CEO Jeannine Jacokes wrote to the Secretary Mnuchin of the U.S. Department of the Treasury and Administrator Carranza of the Small Business Administration (SBA) urging the SBA to immediately promulgate revised Interim Final Rules and/or FAQs clearly affirming the eligibility of CDFIs to apply for PPP loans, given their qualification as small businesses or nonprofits under the CARES Act. Under the CARES Act, the great majority of CDFI banks qualify as small businesses. Likewise, their nonprofit counterparts are explicitly eligible as nonprofit 501(c)(3) organizations.
Over 500 organizations signed onto a CDFI Coalition letter to House and Senate leadership urging that $1 billion in additional funding for the Community Development Financial Institutions (CDFI) Fund be included in the next federal coronavirus recovery act. The letter notes that an additional appropriation for the CDFI Fund will provide CDFIs the tools they need to ensure patient, flexible capital reaches communities and businesses at the
CDBA joined other trade associations representing banks and credit union members in a letter to Small Business Administration (SBA) Administrator Jovita Carranza to share the continuing concerns about the loan submission process and ongoing E-Tran access issues for lenders participating in the SBA Paycheck Protection Program. The letter asks that the SBA continue its collaboration with the Treasury to provide timely and consistent guidance to financial institutions as they work to provide their communities with this critical assistance.
CDBA joined a coalition of civil rights, faith, and community development organizations led by the Center for Responsible Lending in writing to Secretary of the Treasury Steven Mnuchin urging that the Treasury direct the Small Business Administration (SBA) to designate that Community Financial institutions (CFIs) receive one-third of the $30 billion set aside for three groups of lenders—CFIs, small insured depository institutions, and credit unions—pursuant to H.R.
In a letter to Jodie Harris, Director of the Community Development Financial Institutions (CDFI) Fund, CDBA CEO Jeannine Jacokes urged the CDFI Fund to ensure that all Paycheck Protection Program (PPP) loans originated by CDFI banks be considered to meet the "primary mission" and "target market" eligibility criteria for ongoing CDFI certification and compliance purposes.
CDBA CEO Jeannine Jacokes wrote to Chairman Jerome Powell of the Board of Governors of the Federal Reserve System to submit comments and recommendations on the liquidity facilities released by the Board of Governors on April 9, 2020. The letter outlines comments and questions about the Federal Reserve's three liquidity facilities (PPP, Main Street New Loan and Main Street Expanded) that most directly address the liquidity of concerns of CDFI banks, with a focus on positioning Low- and Moderate-Income (LMI) communities that are part of America's "Main Street" for long-term recovery.
Major banking trades, including the Community Development Bankers Association (CDBA), American Bankers Association (ABA), Bank Policy Institute (BPI), Independent Community Bankers of America (ICBA), National Bankers Association (NBA), and National Association of Affordable Housing Lenders (NAAHL), are collectively urging Congress to appropriate $1 billion for the Community Development Financial Institutions (CDFI) Fund to aid in economic recovery in response to the coronavirus pandemic.