New for 2014 -- NCUA Provides Grants for CDFI Certification
The National Credit Union Administration has announced its first grant round for 2014. New this year are grants of $2,500 each to as many as 40 credit unions seeking CDFI certification.
The National Federation of Community Development Credit Unions, along with national and state credit union leaders, has campaigned to significantly increase the number of credit unions with CDFI certification, and applauds the NCUA for making grants available specifically for certification. CDFI certification is one of the building blocks for sustainable growth in low- and moderate-income communities. The CDFI Fund is one of the most important sources of capital for credit unions with a mission to serve the underserved.
The Federation's mission is to help low- and moderate-income people and communities achieve financial independence through credit unions. Through our nationally recognized consulting arm, CU Breakthrough, the Federation has developed a streamlined methodology to help member credit unions obtain CDFI certification and grow their impact in low-income communities.
Given the importance of CDFI certification to this mission, the Federation has priced CDFI certification engagements at $2,500 in 2014 for applications based on Investment Area or Low-Income Targeted Population target markets.
Though the majority of the nation's low-income credit unions are eligible for certification, only 10% are currently certified. This is the result of the complex application process that requires identifying an eligible target market and meeting other eligibility criteria. The Federation's CDFI tested methodology based on the random sampling of borrower data, significantly streamlines the application process and reduces the resources and effort required by credit unions to support their applications.
CU Breakthrough consultants are available to assist interested credit unions submit a TAG application for CDFI certification and/or work on the preparation of CDFI certification packages for submission to the CDFI Fund. Applications for NCUA's grants will only be accepted February 3 through February 14, 2014. Please contact the Federation at CUBreakthrough@inclusiv.org for more information on how we can help you take this important next step in building financial independence in your community.