ALEXANDRIA, Va. (5/15/09)--National Credit Union Administration Chairman Michael Fryzel encouraged credit unions to use Community Development Financial Institutions (CDFI) funds to enhance delivery of financial products and services.
"Credit unions have received more than $14 million from the CDFI Fund over the past three years," Fryzel said. "Credit unions are well-suited to benefit from the programs offered by the CDFI Fund."
The fund, created in 1994 under the Treasury, certifies and invests in financial institutions that provide financial products and services primarily to low-income communities or low-income people.
Credit unions may apply for up to $100,000 in Technical Assistance grant funding to build internal capacity or to achieve CDFI certification. Certified CDFI credit unions may apply for up to $2 million in Financial Assistance for capitalization funds to support their overall business plan.
Through the American Recovery and Reinvestment Act of 2009, the CDFI Fund received another $98 million to make awards. Funding is also anticipated for 2010 programs, expected to be announced this fall.
courtesy of cuna.org