ARLINGTON, Va. — On the eve of the hearing on serving the financially disadvantaged targeting funding for the Community Development Financial Institutions Fund, NAFCU President/CEO Fred Becker asked that the funding be raised to $80 million or at least maintaining the FY06 level of $54.5 million.

"The CDFI was created to provide financial support to credit unions and other financial intermediaries chartered to assist in developing and rehabilitating economically distressed areas," Becker wrote. "The program enjoys broad participation from many different types of financial institutions, with credit unions participating in growing numbers each year. NAFCU understands the need for fiscal responsibility, however, this important program is vital in helping credit unions and other financial institutions revitalize depressed communities." The letter was sent to all members of the Appropriations Financial Services and General Government Subcommittee.

Becker added that NCUA's Community Development Revolving Loan Fund "is a fundamental component in providing low-income designated credit unions the opportunity to obtain loans and technical assistance grants to improve and enhance services to their members. The result is affordable financial services for those with modest means and an opportunity to keep assets within the community. Furthermore, we support the request of the National Federation of Community Development Credit Unions to enable the NCUA to use half of Fund for secondary capital loans instead of just deposits for liquidity." He requested NCUA get its full request of $941,000 for technical assistance grants and loans.