CDFI Awards Seek to Make Big Impact on Underserved
Money from the U.S. Treasury Department’s Community Development Financial Institutions Fund’s latest round of funding will help credit unions offer members alternatives to high cost payday and auto loans, improved savings options, financial education and loans to bring fresh food into neighborhoods that currently do not have any, according to the CDFI fund and credit union executives.
The CDFI fund has announced almost $20 million in grants to community development credit unions and credit union organizations, according to the National Federation of Community Development Credit Unions that tracks the grants.
Pamela Owens, interim CEO at the National Federation, celebrated the grants and pointed out that they are part of an ongoing tradition of CDCUs making the most out of their CDFI grant money.
“A recent study released by the CDFI fund shows that CDCUs mobilize $10 in community assets for every dollar of capital, which is more than any other type of CDFI,” Owens said. “We’ve known this for a long time, but were pleased to see the power of cooperative finance recognized by the CDFI study.”