The National Credit Union Administration announced that federally insured low-income credit unions can now apply for certification as community development financial institutions through the streamlined application process developed by the agency in tandem with the Community Development Financial Institutions Fund.
Under the simplified process, low-income credit unions can submit data on loan originations and their target markets to NCUA’s Office of Small Credit Union Initiatives. The agency 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 back to the CDFI Fund for final determination.
“Through CDFI certification, low-income credit unions can better serve their communities,” said NCUA board acting chairman J. Mark McWatters in a statement. “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.”
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.
