Federally insured, low-income credit unions seeking CDFI certification can apply to use the NCUA’s streamlined qualification process beginning Jan. 24.
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, according to the NCUA. The Consolidated Appropriations Act, 2021 authorizes additional COVID-19 relief funding for community development financial institutions that predominantly serve minority communities, with approximately one-third of this additional funding including a set-aside for smaller financial institutions with less than $2 billion in assets.
“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,” said Rodney Hood, NCUA chairman. “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.”