Advocacy

NCBA CLUSA supports two legislative proposals that promote affordable, inclusive lending

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In letters to Congressional leaders last week, NCBA CLUSA President and CEO Doug O’Brien shared support for two bills pending before Congress to support Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs).

The Jobs and Neighborhood Investment Act (S.4255), introduced by Sen. Mark Warner (D-VA) would make robust investments in CDFIs and MDIs and make several reforms to ensure that these lending institutions can continue to make affordable, flexible loans to small businesses, particularly in underserved communities. S.4255 has a growing list of bipartisan supporters including Sens. Cory Booker (D-NJ), John Boozman (R-AR), Mike Crapo (R-ID), Lindsey Graham (R-SC), Kamala Harris (D-CA), Doug Jones (D-AL), John Kennedy (R-LA), Bob Menendez (D-NJ), Chuck Schumer (D-NY), Tim Scott (R-SC), Thom Tillis (R-NC), Chris Van Hollen (D-MD) and Roger Wicker (R-MS).

Read the full letter here.

The Promoting and Advancing Communities of Color Through Inclusive Lending Act, H.R.7993, was introduced by Financial Services Committee Chairwoman Maxine Waters (D-CA) and Subcommittee on Consumer Protection and Financial Institutions Chair Gregory Meeks (D-NY). This legislation makes several changes to provide immediate resources to these institutions as well as reforms to improve existing tools, including establishing a 40 percent set-aside of CDFI funds to ensure that these critical investments reach low-income and minority communities.

Read the full letter here.

O‚ÄôBrien writes,‚ÄĚ Like small businesses across the country, thousands of cooperatives are struggling to weather the economic crisis brought on by COVID-19‚ĶIt is critical that the federal government invest in financial institutions like CDFIs and MDIs that reach these communities and help entrepreneurs get through this crisis.‚ÄĚ

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