If your credit union is a low-income designated CU, now is the time to apply for Community Development Financial Institution status through the National Credit Union Administration’s (NCUA) Streamlined Certification process.
The CDFI designation makes credit unions eligible to apply for awards through several competitive programs, often funded through the CDFI Fund. These awards allow CDFI credit unions to finance activities including mortgage lending for first-time homebuyers; flexible underwriting for community facilities; and commercial loans for businesses in low-income areas.
The NCUA offers a streamlined process to apply for this designation to qualified credit unions. It’s important to note: not all credit unions are qualified to use this streamlined application. Your credit union must apply for the NCUA to determine eligibility. The deadline to apply is April 3.
For qualification purposes, CUs will have to provide the NCUA with a defined set of loan information to analyze. The NCUA will analyze your credit union’s lending activities and other indicators to determine whether you are a strong candidate for the streamlined CDFI certification. The NCUA will then provide qualified CUs with the application needed to apply through the CDFI Fund.
The CDFI Fund will make final decisions on all CDFI designations.