CDFI Fund Announces $25M to Credit Unions


 CDFI Fund Announces Over $25 Million to Credit Unions Serving Low-Income Communities

Increase in Awards to Credit Unions

(September 24, 2013 – New York, NY) The US Treasury’s Community Development Financial Institutions Fund (CDFI Fund) awarded Financial and Technical Assistant Awards to 191 organizations totaling over $172 million today.  Thirty-five credit unions were among the CDFIs receiving awards with a share of $25.5 million.  “The fiscal year 2013 round of the CDFI Program provides more awards than any other round in the CDFI Fund’s history,” said CDFI Fund Director Donna J. Gambrell.  “By expanding the reach and impact of this program to more organizations, the CDFI Fund is supporting more economic development efforts than ever before to bring new life to struggling communities.”  The increase in the number of awards and total funds granted to credit unions in 2013 is significant relative to last year when only 24 credit unions received $17.8 million in awards.  Twenty-five of the 35 credit unions granted awards this year are members of the National Federation of Community Development Credit Unions (Federation).

The Federation was instrumental in establishing the CDFI Fund and is a permanent member of the national CDFI Coalition.  Cathie Mahon, Federation President and CEO, notes that the Federation advocates with the CDFI Fund on behalf of all credit unions.  “The increase in credit unions receiving CDFI Fund awards will yield significant returns in connecting underbanked and unbanked Americans to safe and affordable financial products and services.”

 

2013 CDFI Fund Awards to Credit Unions

 

1st Bergen Federal Credit Union

Alliance Credit Union

ASI Federal Credit Union

Cascade Forest Products Credit Union

Choices Federal Credit Union

East River Development Alliance Federal Credit Union

Electro Savings Credit Union

Express Credit Union

First Light Federal Credit Union

FM Financial Credit Union

GECU

Greater Abbeville Federal Credit Union

GTE Federal Credit Union

Guadalupe Credit Union

Gulf Coast Community Federal Credit Union

Hope Federal Credit Union

Jefferson Financial Credit Union

Joplin Metro Credit Union

KC Terminal Employees/Guadalupe Center Federal Credit Union

Latino Community Credit Union

New York University Federal Credit Union

Newrizons Federal Credit Union

North Coast Credit Union

Nueva Esperanza Community Credit Union

Opportunities Credit Union

Poplar Bluff Federal Credit Union

Santa Cruz Community Credit Union

Self-Help Federal Credit Union

Shreveport Federal Credit Union

South Central Missouri Credit Union

St. Louis Community Credit Union

Syracuse Cooperative Federal Credit Union

TMH Federal Credit Union

Unite Burlington Credit Union

United Credit Union

$300,000

$874,500

$1,347,000

$86,470

$200,000

$100,000

$1,347,000

$100,000

$1,347,000

$46,272

$1,347,000

$99,995

$1,347,000

$597,000

$1,003,730

$1,347,000

$1,097,000

$85,000

$72,304

$1,347,000

$719,814

$495,000

$94,951

$92,680

$1,347,000

$589,000

$847,000

$1,347,000

$1,347,000

$100,000

$847,000

$664,241

$71,136

$86,000

$597,000

 

Crystal Long, CEO of GECU, the largest CDFI certified credit union in the US and a Federation member, says she is “thrilled to have been awarded a grant of $1.34 M through the US Treasury’s Community Development Financial Institutions Fund.  We look forward to using the dollars to enrich the lives of those living here in the El Paso area.  This grant greatly enhances GECU’s ability to further its commitment to provide comprehensive financial education as well as competitive products and services to El Pasoans.”

Paul Woodruff, VP, Community Development for St. Louis Community Credit Union, also a Federation member, is similarly pleased, “we’re excited to have the opportunity to connect low-income borrowers with the resources they need to purchase a reliable automobile in order to get to work and better manage their everyday lives.  CDFI funding gives our institution the chance to change the life trajectory of more than 500 individuals over the three-year funding period.  We know from empirics that families with access to a reliable automobile have expanded opportunities to gain employment and the traction they need to become upwardly mobile.  We are thankful for this opportunity and eagerly await the work ahead of us.”

Winona Nava, CEO of Guadalupe Credit Union and CUNA Board member adds, “We are thrilled to receive this grant award.  The grant funds will increase our capacity to offer affordable loans to the people who need them most, in communities plagued by predatory lenders.  It gives us the flexibility to pursue our active outreach to underserved communities, especially in a difficult economy, while reinforcing the safety and soundness of our members’ assets.”

 The Federation is committed to helping credit unions gain access to the resources necessary to provide safe and affordable financial products and services to underserved communities.  “The Federation specializes in promoting financial security to low-income communities through credit unions,” says Pablo DeFilippi, the Federation’s Director of Membership.  “Applying for CDFI Financial and Technical Assistance is a big undertaking, but the benefits are worth the effort.  The CDFI Fund represents the largest source of external capital available for community development financing and is a cornerstone of a sustainable development strategy.”  Since its inception in 1994, the CDFI Fund has awarded over $1.8 billion to community based lending organizations serving rural and urban low-income people and communities in the US, with over $150 million in funding going to CDFI certified credit unions.

The Federation’s CU Breakthrough consultants can help credit unions with their applications for the 2014 Financial Assistance Award round.  Visit us online at www.cdcu.coop to learn more about the Federation’s CU Breakthrough consulting services.

 # # #

The National Federation of Community Development Credit Unions (Federation) is a certified CDFI Intermediary representing more than 250 community development credit unions (CDCUs). The Federation’s member CDCUs provide credit, savings, transaction services and financial education to more than 2.5 million residents of low-income urban, rural and reservation-based communities across the United States, and hold over $19 billion in community-controlled assets. Founded in 1974, the Federation is headquartered in Lower Manhattan with offices in Colorado Springs, CO and Madison, WI. The Federation offers a wide range of advocacy, educational, training, investment, marketing, and outreach programs to support and assist CDCUs.

 Media Contacts: Clarissa Ritter, 212-809-1850, ext. 210 or critter@cdcu.coop

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