ALEXANDRIA, Va.–Five federally insured, low-income credit unions have earned certification as community development financial institutions, NCUA has announced.
The five credit unions are:
- Central Sunbelt Federal Credit Union, Laurel, Miss.
- Chicago Municipal Employees Credit Union, Chicago
- ELGA Credit Union, Burton, Mich.
- New Covenant Dominion Federal Credit Union, Bronx, N.Y.
- Softite Community Federal Credit Union, Martins Ferry, Ohio
The five credit unions completed a streamlined certification process developed by NCUA and the Community Development Financial Institutions Fund. NCUA and the CDFI Fund last year agreed to work to increase the number of certified credit unions. NCUA said it identifies low-income credit unions that may qualify, using data the agency collects through its regulatory process. The agency then notifies the credit unions of their preliminary qualification.
NCUA added that the credit union must submit loan transaction data to NCUA for confirmation that it has sufficient loans to CDFI-eligible individuals and geographic areas. Credit unions that meet that requirement are permitted to use the streamlined application to apply for certification.
NCUA recently announced that the effort to expand the number of CDFI-certified credit unions will become a permanent program. During the fall, NCUA said it invited more than 500 low-income credit unions to submit their loan data to determine their qualification for the new application. The five credit unions are the first to complete the certification process.