A “streamlined” application process opens June 4 for low-income federally insured credit unions considering becoming community development financial institutions (CDFIs); the period closes on June 22, the federal credit union regulator said Wednesday.
The National Credit Union Administration (NCUA) said that during the “streamlined” application process, the agency performs an analysis of credit union loan origination data (submitted by the credit union) to determine likelihood for certification. If the results of the NCUA’s analysis suggest a credit union is a strong candidate for the streamlined process, the agency provides the credit union with the application materials. The credit union then completes and submits its application to the Community Development Financial Institutions Fund, which makes the final determination on the certification.
The agency said in a release that if credit unions do not meet specific eligibility criteria for the streamlined application process, they can still apply through the CDFI Fund using the standard form.
“Credit unions that obtain CDFI certification can take advantage of training and competitive award programs provided by the CDFI Fund,” the agency said. “These resources enhance credit unions’ capacity to provide underserved communities with access to safe and affordable financial services.”