After an unprecedented 35 days, the partial government shutdown is over and furloughed federal workers are back on the job. In short order, loans and other transactions will resume being processed by the Small Business Administration, USDA, the CDFI Fund and other federal agencies.
During the shutdown, families, communities, and CDFIs experienced numerous hardships and disruptions. Many CDFIs met the challenge faced by their borrowers in creative and inspiring ways. Listed below are a few examples of the “extra mile” that CDFIs have gone to assist their borrowers and advance their community development mission under trying circumstances.
- DC Credit Union offered furloughed federal employees interest free loans
- NeighborWorks Capital offered short-term bridge loans to NeighborWorks network members who are experienced delays in funding or reimbursements from federal contracts or grants for affordable housing programs
- Fahe provided a “Federal Shutdown Stabilization Loan” for its members unable to access federal sources of credit
- Renaissance Community Loan Fund sought to help their mortgage clients experiencing hardship due to the government shutdown.
- Accion USA provided bridge loans to clients that are in the pipeline for an SBA loan
- Multipli Credit Union (formerly CU Community Credit Union) partnered with the Community Foundation of the Ozarks and to provide interest free loans to furloughed government workers
- PeopleFund offered emergency short-term loans to nonprofits and social agencies impacted by Federal Shutdown
On January 25, Congress and the President agreed to a three-week spending deal which expires February 15. Between now and the February 15 deadline, a bipartisan group of Senators and Representatives will work with the Trump Administration to negotiate a compromise on border security and a final spending bill for the balance of FY2019. CDFIs will continue to work with their borrowers in a variety of traditional and creative ways to lessen the lingering impact of the shutdown and to advance economic opportunity for individuals and communities.