Low-income CUs in FL eligible for streamlined CDFI Process

Low-income credit unions in Florida, Puerto Rico, Texas, and the U.S. Virgin Islands, areas hit hardest by hurricanes Harvey, Irma, and Maria last fall, have a special opportunity to seek certification as Community Development Financial Institutions through the National Credit Union Administration.

“Helping credit unions help their members and communities is essential to the NCUA’s mission,” Board Chairman J. Mark McWatters said. “CDFI certification can open the door to financial and technical support that helps qualified low-income credit unions provide more resources locally, particularly when the need is acute, as it is in areas devastated by the hurricanes last fall. I encourage any low-income credit union interested in pursuing this opportunity to work with our Office of Credit Union Resources and Expansion.”

The NCUA has opened an additional round of its streamlined CDFI certification process to low-income credit unions in these areas. The agency’s online program guide has all the necessary instructions for applying. The agency will host its previously announced certification application rounds in March, June, and September.

The deadline for submitting information during this special round is Feb. 16, 2018 at 3 p.m. Eastern. Credit unions that qualify for the streamlined certification process will be notified by March 30.

For more information, please contact the Office of Credit Union Resources and Expansion by email at CURECDFI@ncua.gov or by telephone at 703.518.6610.

In the NCUA’s streamlined process, developed with the Treasury Department’s Community Development Financial Institutions Fund, low-income credit unions submit data on loan originations to the NCUA’s Office of Credit Union Resources and Expansion. Agency staff will analyze each credit union’s information 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 data necessary to complete it. The credit union then completes the application and submits it to the CDFI Fund.

Credit unions not eligible for streamlined certification can still use the standard application. The CDFI Fund webpage has complete information.

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.