CDFI Application Process Streamlined Posted by Association of Vermont Credit Unions on 12:14 PM

Low-income credit unions who are eligible to be certified as Community Development Financial Institutions may be able to take advantage of a new streamlined application process.

NCUA’s Office of Small Credit Union Initiatives is contacting low-income credit unions that are not yet CDFI-certified, but that could be eligible for the streamlined application process. NCUA can do much of the required pre-qualification work, using existing AIRES data.

CDFI certification is determined by the Community Development Financial Institutions Fund, a division of the U.S. Department of the Treasury.  The program gives certified credit unions more tools with which to do local economic development. A CDFI-certified credit union becomes eligible to apply for multiple programs offered by the CDFI Fund, including direct funding through awards or grants.   

For CDFI credit unions, this means access to 5, 6 or even 7 figure grant awards that can be used to grow capabilities and further their mission to serve members and serve their community. CDFIs also can take advantage of technical assistance, training, and capacity-building initiatives to support their missions. 

Last year, the CDFI Fund funded more than $200 million in grants and awards, with just over $31 million going to CDFI-certified credit unions. The more credit unions that become CDFI-certified and successfully apply for available funding, the more available CDFI Fund dollars can flow into credit unions and help them improve their members’ financial lives.

“There is no doubt that CDFI certification and support helps credit unions better succeed to serve their members. AVCU encourages credit unions contacted by NCUA to give the CDFI program and its benefits every consideration and evaluate how it can help their CU better succeed in meeting today’s marketplace and member demands."     Joe Bergeron, President, Association of Vermont Credit Unions  

Working with NCUA assistance, interested and eligible credit unions will still be responsible for completing the few remaining data requirements and for directly submitting their applications to the CDFI Fund. However, NCUA can save these credit unions time in the process by providing many of the necessary data points. 

Several online resources are available to help you learn more about the new process and CDFI certification. They are:

• CDFI Certification - More Than One Way to Get There: A recording of the June 23 joint-agency webinar explaining the two methods a credit union can become a CDFI.

• CDFI Fund Certification: A video explaining the benefits of CDFI certification and guidance from the CDFI Fund for credit unions using the traditional application.

• CDFI-LID Fact Sheet: A quick-reference on the differences and benefits of the CDFI Fund’s certification and NCUA’s designation.

• CDFI Fund website: For information about the CDFI Fund’s award programs.

Of the 281 CDFI-certified credit unions in the nation, Vermont currently has two:  Opportunities Credit Union and Northern Lights Credit Union.