Advocacy and Policy Change
Our 2021 policy platform reflects our commitment to advocating for policies that facilitate attracting or deploying capital in South Carolina communities.
SC Community Development Tax Credit
We support the adoption of this credit, which provides up to $3 million annually in Community Development Tax Credits to South Carolina tax payers who invest in South Carolina’s rural and low-wealth communities. These investments are designed to increase economic opportunities to create jobs, small business opportunities, workforce housing, and improve the skills of South Carolina workers.
This bill passed in May 2021, with an allocation of $1MM for tax year 2021 and $2MM for 2022 and 2023.
Predatory lending is widespread and particularly impacts rural communities and people of color. Currently, there is no cap on interest rates in SC. SCCLF supports the enactment of legislation that would limit interest rates and promote other fair lending practices.
COVID-19 Relief Funding
CDFIs are a key partner in the economic recovery. SCCLF has advocated for them to be included in state and federal stimulus bills.
In June 2021, Vice President Harris announced that the CDFI Fund would be allocating $1.25 billion in coronavirus relief funding to CDFIs across the nation. SCCLF received a $1.2MM award. Additionally, in response to the deployment of American Rescue Plan dollars, SCCLF is working to advocate for South Carolina cities and towns to use these dollars toward community development efforts.
Community Reinvestment Act
SCCLF stands with the Opportunity Finance Network and the National Community Reinvestment Coalition in opposition to the weakened CRA rules adopted in May of 2020. As a CDFI who places a focus on lending to borrowers of color, we have seen firsthand the compounding harm done to communities who lack access to capital. A lack of opportunity to create generational wealth among communities of color only serves to widen the racial income and wealth gaps, which are already growing at an alarming rate.
The Federal Reserve has announced its own rulemaking effort. SCCLF submitted a comment letter advocating for an effective, well-enforced CRA.
In May of 2021, the Office of the Comptroller of the Currency announced that it would be halting its 2020 update to CRA rules. This important policy decision places a hold on controversial new rules and allows for the possibility that a new joint regulatory framework will be created. This decision represents an important policy win and comes after years of concerted advocacy efforts from the CDFI industry.
CDFI Fund Appropriations
The country's CDFIs need the necessary financial support at the federal level to turn the tides of systemic disinvestment in rural and urban communities, hasten economic recovery, and expand access to essential services. SCCLF stands with CDFIs across the nation to request $1B appropriations to the CDFI Fund.
Use OFN's Policy Action Center to contact your Members of Congress and as them to keep CDFIs Strong.
NMTC Extension Act
New Markets Tax Credits were set to expire, but received a $5B extension that would fund the credits through 2025. SCCLF supports the introduction and subsequent passage of permanency bills into Congress, and advocates for the permanent preservation of this powerful catalyst for community investment.