ALEXANDRIA, Va. (Jan. 12, 2021) – Federally insured, low-income credit unions seeking Community Development Financial Institution certification can apply to use the National Credit Union Administration’s streamlined qualification process beginning Jan. 24.
“Expanding access and opportunity is fundamental to the credit union system’s mission, and it is one of the pillars of ACCESS, the agency’s financial inclusion initiative,” NCUA Chairman Rodney E. Hood said. “I encourage eligible credit unions to explore using this tool as a way to serve underserved communities and provide them with needed credit and essential financial services.”
CDFI certification makes credit unions eligible for CDFI Fund training and competitive award programs that enhance their capacity to provide underserved communities with access to insured, affordable financial services. The Consolidated Appropriations Act, 2021 authorizes additional COVID-19 relief funding for community development financial institutions that predominantly serve minority communities. Approximately a third of this additional funding includes a set aside for smaller financial institutions with less than $2 billion in assets.
NCUA’s program guide (opens new window) has instructions explaining the streamlined qualification process. The deadline for streamlined certification applications is April 3. Credit unions that do not qualify to use the streamlined process may still use the standard CDFI certification application (opens new window).
To qualify for the streamlined process, low-income-designated credit unions submit loan originations to the NCUA by email to [email protected] and complete an online participation form (opens new window). The Office of Credit Union Resources and Expansion then analyzes each credit union’s products, services, and other indicators to determine whether it qualifies to use the streamlined certification application. The office will provide qualified credit unions with the necessary information to complete and submit the streamlined certification application to the CDFI Fund, which will make the final determination on certification.
To learn more about the NCUA’s Advancing Communities through Credit, Education, Stability, and Support, or ACCESS, initiative, visit www.ncua.gov/access.