TALLAHASSEE, Fla.–FLAG Credit Union has received a $125,000 and plans to create a new position and take other steps after being approved for a Technical Assistance Grant fromTreasury’s CDFI Fund.
The CU partnered with CU Strategic Planning on the application.
The $54 million FLAG, which is a CDFI, said it was approved for the full amount of its request.
Just 174 organizations received Technical Assistance awards in FY 2021, totaling $24.1 million, according to Treasury. Technical Assistance Awards help Certified CDFIs and emerging CDFIs to build capacity to provide services to low-income and underserved people and communities, according to Treasury.
“We’re very excited to be receiving this grant so we can increase our reach to deserving people who need the guidance and services we can provide,” FLAG CU Interim CEO Amy Green said. “And we couldn’t have done it without the extraordinary support of CU Strategic Planning’s experienced and dedicated team.”
High Poverty Rate
FLAG CU is based in Tallahassee, Fla., which has a poverty rate of 26.4%. Over the last five years, the credit union said it has increased its lending in the area by 42.5%. FLAG CU added it plans to leverage the grant to add staffing and upgrade its technology to increase lending and expand financial inclusion.
FLAG said it will create a new position at the credit union, Financial Navigator, to “help members access the credit union’s technology and offer one-on-one coaching to consumers, particularly the low-income and elderly members who are unfamiliar with technology. This will prove an essential role as the credit union expands its ability to serve through technology,” the credit union said.
FLAG will also use the grant money to lease two interactive teller machines.
The ‘Big Winners’
"FLAG Credit Union is an example of why the TA Awards exist,” CU Strategic Planning President/CEO Stacy Augustine said. “It is on the path to becoming a stronger CDFI and earning future, larger Financial Assistance Awards. Our job is to facilitate that path. While we've both won today, it is the marginalized consumers in Tallahassee who are the big winners."
CU Strategic Planning, Tacoma, Wash., noted it is the leading writer of CDFI grants for credit unions, focused mainly on Financial Assistance Award grants, and has earned client credit unions $250 million to date.