Jobs and Neighborhood Investment Act addresses COVID-19 economic relief
ALEXANDRIA, VA – Democracy Federal Credit Union (DFCU), in business for over 80 years, continues its long tradition of serving the community during these challenging times. The financial institution donated 1,200 masks to local hospitals, contributed $1,500 to local food banks, and awarded a $500 pandemic relief grant to one customer.
Recently, the Alexandria Branch served as the site for a meeting with Senator Mark Warner (D-VA). The purpose of the socially-distanced gathering, which included City Councilman John T. Chapman, was to discuss a new piece of legislation.
Backed by the senator, the Jobs and Neighboring Investment Act, an addition to the CARES Act, would provide more funding for COVID-19 relief to help community economies recover. During the meeting, Warner asked how the bill could best serve DFCU customers.
The legislation’s three tiers would provide a “possible increase in lending,” Warner said, and called its passage his “top priority.”
Concerning credit unions, the Jobs and Neighborhood Investment Act allocates $2.9 billion to the Community Development Financial Institutions Fund. It also makes secondary capital an eligible investment for Treasury in a Minority Depository Institution (MDI).
According to the Federal Deposit Insurance Corporation, MDIs can be classified into two categories. To fall under either, rules stipulate that institutions must have more than half of their voting stock owned by minority individuals, or that the majority of people on the board of directors are minorities and the clientele is mostly minority.
“We really appreciated the time that Senator Warner spent talking to us and sharing his vision of the Bill,” said Ken Cahoon, Democracy FCU CEO/President. “This legislation is right in line with our strategic initiative to invest in our community by extending our outreach program, enhancing technology, improving our processes and increasing our community partnerships that make sense for the credit union, and our members; furthering our commitment of providing financial freedom to all.”
If the act passes, it would be a huge boost to DFCU, allowing the credit union to reach out to customers in need and the community at large, enhance technology, and gain resources for training. DFCU also plans to help minority-owned businesses.