ALEXANDRIA, Va.–NCUA said that federally insured, low-income credit unions can now apply for certification as community development financial institutions through the streamlined application process the agency developed in conjunction with the Community Development Financial Institutions Fund.
“Through CDFI certification, low-income credit unions can better serve their communities,” said NCUA board Acting Chairman J. Mark McWatters. “NCUA encourages low-income credit unions to explore the expedited application process. With access to CDFI funding and resources, credit unions can extend their reach and expand access to affordable financial services.”
NCUA said that in the streamlined application process, low-income credit unions submit data on loan originations and their target markets to NCUA’s Office of Small Credit Union Initiatives. NCUA will then analyze each credit union’s products and services and other indicators to determine its likelihood for certification. If the credit union is qualified to use the streamlined process, NCUA will provide an application form and the data necessary to complete it. The credit union then completes the application and sends it to the CDFI Fund for final determination.
NCUA plans to host three streamlined CDFI-certification application rounds in 2017, the first of which is open now and runs through March 17. The second round runs from May 1 through May 26, and the third round runs from Aug. 7 through Sept. 1.
Low-income credit unions that do not qualify for the streamlined program may still obtain a CDFI certification through the CDFI Fund’s standard application available here.