WASHINGTON-A number of credit unions here were told that if they want to recertify their Community Development Financial Institution (CDFI) designation, they better get moving now.
That message was shared during a roundtable hosted by the National Federation of Community Development Credit Unions at this year's GAC that provided specific information about changes to the CDFI certification process, as well as new programs, long-term investment prospects and opportunities to shape the CDFI Fund's agenda moving forward.
Pablo DeFilippi, director of membership at the Federation, reminded a group of 100 that the deadline for recertification is April 1.
"Basically, by April 1, around 40% of CDFI credit unions have to recertify-about 104 CUs," explained DeFilippi, who told Credit Union Journal that the recertification process has always been in place. "However the CDFI fund did not enforce the rule. They would often extend the recertification for many, give credit unions an extension letter. But that's not happening anymore. They want everyone who certified before 2010 to recertify by April 1."
DeFilippi is concerned that those CUs that have yet to recertify may not realize the recertification process is complex and time-consuming. "And now they have less than five weeks to do it."
Testimonials Make It Real
The roundtable touched on some of the rules of the recertification process, but dedicated more time to addressing the advantages of having the CDFI designation. Federation President Cathie Mahon led part of the discussion, with DeFilippi taking his turn, as well as CDFI Fund Senior Advisor Jodie Harris and Federation Senior Program Officer Melanie Stern. Three CDFI credit union CEOs also talked about what they have accomplished with the designation. "We think those testimonials made it real for people," said DeFilippi.
"They heard from their peers what the CDFI designation can do for them and their communities."
The roundtable also addressed the long-term prospects for the CDFI industry, newly released regulations for the CDFI Bond Guarantee Program and opportunities to demonstrate community development outcomes.
"CDFI certification is a valuable tool that, together with the low-income designation, gives qualifying credit unions access to external resources and partnership opportunities that can significantly strengthen internal capacity to propel a credit union to its next phase of growth and relevance," said DeFilippi. "The Federation is committed to helping credit unions gain access to the resources they need to better serve low-income consumers and underserved communities."
