Read more at the Washington Credit Union Daily
Low-income, federally insured credit unions that wish to be certified as Community Development Financial Institutions may apply for the National Credit Union Administration’s streamlined qualification process between Sept. 12 and Oct. 15, agency officials announced last week.
“CDFI certification is an important tool eligible credit unions can use to expand opportunity for their members and communities,” NCUA Chairman Todd Harper said. “Credit unions can use CDFI funding to build capacity and develop new products and services to meet the credit and savings needs of consumers, especially those of modest means.”
To qualify, low-income credit unions must register in the NCUA’s CyberGrants system and complete a participation form. The NCUA’s Office of Credit Union Resources and Expansion will review the applications and determine if an institution qualifies for the streamlined process.
Credit unions that do not qualify for the streamlined application still may pursue CDFI certification using the standard application.
CDFI-certified credit unions may apply for training and the competitive award program that NCUA officials said may enhance a credit union’s capacity to provide underserved communities with access to safe, affordable financial services.
The Biden Administration in June awarded 244 Community Development credit unions a total of $401.8 million to help the institutions and the communities they serve recover from the economic problems caused by the coronavirus crisis.