The U.S. Treasury Department's Community Development Financial Institutions Fund is slated for an increase of $107 million over its 2009 funding level and, most crucially, will drop the so-called "matching funds" requirement.
Last year's pre-stimulus funding for the fund stood at $107 million. Congress has appropriated $246.75 million for 2010.
Community development credit unions that are recognized as CDFIs are eligible to apply for grants under the program, but a previous requirement that organizations that receive CDFI funds show they can match those funds with money from other sources effectively blocked many CDCUs from participating. Dropping the "matching funds" requirement will open the possibility of receiving grant funding to many more CDCUs that are CDFIs.
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In related legislative news, Congress also removed the borrowing cap on Central Liquidity Facility borrowing for another fiscal year and increased the appropriation for the Community Development Revolving Loan Fund.
For the second fiscal year in a row, the CLF cap was set $43.8 billion in contingent liquidity to credit unions. The CDRLF appropriation was raised by $250,000, to $1.25 million for 2010.
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