NCUA Announces Oct. 5 Deadline for Streamlined CDFI Applications

Federally insured, low-income credit unions that want to be certified as Community Development Financial Institutions using the NCUA’s streamlined qualification process for CDFI certification must submit their applications by Oct. 5, agency officials said Monday.

This will be the final chance credit unions have to take advantage of the streamlined certification process this year.

NCUA officials said that credit unions need to be aware of changes the Treasury Department has announced important changes to the Community Development Financial Institution and the Native American CDFI Assistance programs.

Beginning with the FY20 application round, credit unions must be certified as community development institutions no later than the date the Notice of Funds is published in the Federal Register.

The notice is expected to be published early next year.

The agency’s Office of Credit Union Resources and Expansion has a  resource page with details about CDFI certification and the streamlined process.

The streamlined application process has helped 50 credit unions obtain certification as community development institutions, according to agency officials.

The CDFI program invests in and helps build the capacity of community development financial institutions to serve low-income people in communities lacking affordable financial products and services.

It remains unclear how much money the CDFI program will receive in the next fiscal year, since Congress has not enacted FY20 appropriations measures. The House has proposed an increase of more than $50 million for the CDFI program, which would give it about $300 million during the next fiscal year.

The Senate Financial Services Appropriations Subcommittee is scheduled to mark up its bill on Tuesday, with the full committee scheduled to act on the measure on Thursday.