The Federation was instrumental in establishing the CDFI Fund in 1994, is a permanent member of the national CDFI Coalition and is the CDFI authority for the credit union industry. The Federation’s 250 member community development credit unions represent the majority of all CDFI-certified credit unions.
The mission of the CDFI Fund is to expand the capacity of financial institutions to provide credit, capital and financial services to underserved populations and economically distressed communities in the United States.
With CDFI certification credit unions are eligible for:
- Financial Assistance or Technical Assistance Awards of up to $2 million per year
- deposits from institutions participating in the Bank Enterprise Award Program
- participation in the CDFI Fund Community Investment Impact System to measure and demonstrate impact
- low cost lines of credit to promote affordable housing lending through the Federal Home Loan Bank’s community development program
- other government programs as they become available, like the Community Development Capital Initiative (CDCI) that distributed $70 million in low cost secondary capital to 48 credit unions in 2010
- the CDFI Bond Guarantee Program, potentially the largest source of secondary capital ever made available to eligible credit unions
- the Bureau of Indian Affairs loan guarantee program
Want to become a CDFI?
The Federation can help you navigate the cumbersome application process. We have developed a methodology to obtain certification for credit unions based on a statistically valid random sampling of borrower’s income data. Using this streamlined process, the Federation has assisted over one hundred credit unions with CDFI certification or re-certification.
To learn more about how the Federation can help you with CDFI certification contact our CU Breakthrough team.