Saturday, April 3 is the Deadline for LIDs to
Apply for Streamlined CDFI Certification
Don't miss out! Apply to start the process now.
The economic stimulus package passed in December includes historic level of funding and investment opportunities for CDFIs. The CDFI certification has become more valuable than ever. Last week, the CDFI Fund closed its first funding round, the Rapid Response Program, which will deploy $1.2 billion to CDFIs, including more than 300 credit unions and financial cooperatives. On May 3, the CDFI Fund will close a second funding opportunity, the Technical and Financial Assistance program, which will deploy near $200 million to CDFIs and CDFI-eligible institutions.
More opportunities still lie ahead. The CDFI Fund just announced another opportunity: the Small Dollar Loan Program, which will provide $13 million for CDFI and CDFI eligible lenders interested in scaling up anti predatory lending products. A much bigger opportunity will be announced later in the year, the COVID-19 Recovery Grants, which will disburse $1.75 billion (including $1.2 billion set aside for MDIs).
Inclusiv is already advocating for a permanent increase to $1 billion in appropriations for the CDFI Fund for FY 2022. This is the time to be a CDFI!
The deadline for the National Credit Union Administration's (NCUA) streamlined CDFI qualification and application process for low-income credit unions interested in obtaining certification is Saturday, April 3. The streamlined process is designed to expand access In low-income and financially underserved communities and individuals. Do not miss out on this opportunity to enhance your credit union's capacity to better serve members through a variety of awards and programs.
To participate in the qualification process, a credit union must meet ALL of the following requirements:
- Is federally insured through the NCUA;
- Has a low-income designation granted by the NCUA or a similar state designation confirmed by the NCUA; and
- Provides at least one of the following programs and services to its members:
- Financial counseling or education,
- Financial literacy workshops,
- In-school branches, or
- A first-time homebuyer program.
To reduce applicant burden, the NCUA performs an initial analysis determining whether your credit union is a strong candidate for the streamlined process. To participate, your credit union must provide a defined set of loan information for analysis to determine if the qualification criteria are met. Qualified credit unions will then be provided with the necessary information to complete and submit the application to the CDFI Fund. For a detailed overview of the qualification process, visit the NCUA website.
FY 2021 Intake Periods
Credit unions that do not qualify to use the streamlined certification application should explore using the standard application or participate in the qualification process intake period during the next calendar year.
Inclusiv is here to help. We’re working with CUNA Mutual Group and a growing number of credit union leagues and associations to increase awareness about the CDFI certification and help credit unions navigate the process. Please visit our CDFI resource page and/or join our CDFI office hours every Wednesday.