NEW YORK —The National Federation of Community Development Credit Unions, CUNA Mutual Group and the California and Nevada CU Leagues have announced a joint effort aimed at increasing the number of Community Development Financial Institution (CDFI) certified credit unions in California.
In a statement, the three organizations noted that the number of CDFI-certified CUs has grown to 261 nationally, representing $50 billion in total assets and serving six-million primarily low-income consumers in financially underserved communities.
From the CDFI’s inception in 1994, over $168 million has been awarded to California CDFIs, but California credit unions have only received $14 million, or less than 10% or the dollars awarded, the organizations said. There are 60 low-income credit unions in the state of California. The first step in increasing the number of CDFI awards to California credit unions is to increase the number of credit unions that are CDFI certified, as only certified credit unions are eligible to receive funding. The Federation said its CU Breakthrough consulting group and CUNA Mutual Group will sponsor up to 30 credit unions in the application process.
“We believe in the immense value of CDFI certification and how it enables credit unions to create financial security for individuals who need it most,” says Cristopher Roe, SVP of corporate and legislative affairs for CUNA Mutual Group in a statement. “We gladly commit $75,000 to this worthwhile effort in partnership with the Federation and the California and Nevada Credit Union Leagues.”
Credit unions are being reminded that the low-income designation is not a requirement for CDFI certification.
Interested credit unions can register for informational roundtables that will outline the benefits of CDFI certification and the application process to be held on Dec. 8 in Ontario, Calif., and Dec. 10 in Oakland, Calif. The certification process takes approximately six weeks and involves a seven-step verification process, including target market, legal entity, primary mission, financing entity, accountability, development services and non-government entity.