ALEXANDRIA, Va.–Beginning Friday, federallyinsured, low-income credit unions seeking to become certified community development financial institutions may be eligible to use NCUA’s streamlined application.
In the streamlined process, which runs from March 16 through April 6, low-income credit unions submit data on loan originations to the NCUA’s Office of Credit Union Resources and Expansion. The agency said it 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, the NCUA will provide an application form and the data necessary to complete it,” the agency said. “The credit union then completes the application and submits it to the CDFI Fund, which makes the final determination on the certification. Credit unions not eligible for the streamlined application can still use the standard form.”
NCUA said its online program guide has all the necessary instructions for applying.
Developed by the NCUA and the Community Development Financial Institutions Fund, the agency reported its streamlined application process has helped 39 credit unions obtain certification as community development financial institutions.
Credit unions that obtain CDFI certification can take advantage of training and competitive award programs provided by the CDFI Fund. These resources enhance credit unions capacity to provide underserved communities with access to safe and affordable financial services, NCUA said.
Additional information can be found on the CDFI Fund webpage.
Separately, three credit unions were among the recipients of $120 million in funds distributed by the U.S. Department of the Treasury's Community Development Financial Institutions Fund (CDFI Fund).
In all, 40 organizations were provided funds intended for the development of affordable housing and related economic development activities in low-income communities. These awards were made through the fiscal year 2017 round of the Capital Magnet Fund, with funds available from the calendar year 2016 government-sponsored enterprises' allocations, and will support financing for the preservation, rehabilitation, development or purchase of affordable housing for low-income communities; as well as related economic development and community service facilities such as workforce development centers, day care centers, and healthcare clinics.
The awardees include 25 certified Community Development Financial Institutions and 15 non-profit housing organizations.
Among the credit unions awarded funds were in this latest round were Appalachian Community FCU ($1 million), Hope FCU ($2.5 million), and Self Help FCU ($3.4 million).