Last month's announcement thatthe NCUA will provide $2,500 each to as many as 40 credit unionsseeking CDFI certification through a grant round slated to beginFeb. 3 is welcome news to the thousands of low-income designatedcredit unions looking for opportunities to expand their reachwithin communities across the country.

“CDFI-certified financial institutions have access to additionalcapital, which can help them create jobs and promote financialstability in some of our nation's most underserved communities,”wrote NCUA Board Chairman Debbie Matz in a release announcing thenews.

Currently, only about 10% of the 2,000 low-income credit unionsdesignated by the NCUA are CDFI-certified. Yet the certificationand resulting fund access remain one of the most importantresources of LICUs, providing access to capital. While LICUdesignation provides the regulatory framework for utilizing many ofthese benefits, the fund's capital awards (up to $2 million each),available through grants, have been leveraged to mitigate risk andexpand sustainable programs.

Grant monies awarded through the CDFI Fund's FinancialAssistance grant program is primarily used for secondary capitaland loan loss reserves. The fund also has a technical assistancegrant of up to $125,000 that can be used for operational expensesto get new programs off the ground. Although the process iscompetitive and there are no guarantees, the CDFI Fund has awardedmore than $1.7 billion to community development organizations andfinancial institutions since 1994.

Beyond grant awards, the CDFI credential is a valuable tool forcredit unions seeking to build strong community partnerships. Ifind that more often than not, key stakeholders in the communityknow more about the inherent value of the CDFI certifications thanthe credit unions themselves. Many key community organizations willgladly partner with credit unions that hold the certification.

Another benefit to those who serve a low-income target market isaccess to expertise. Since 1974, the National Federation ofCommunity Development Credit Unions has served with a mission totarget low-income and underserved consumers. The federation wasinstrumental in establishing the CDFI Fund in 1994.

The federation will not only be providing CDFI certification for$2,500 for credit unions that participate in the NCUA grantapplication, it has decades of expertise in building credit unionprograms specific to the low-income target market.

The key for LICU credit unions moving forward is to make use ofall these benefits. Tuscaloosa Credit Union Alabama is a greatexample. A LICU looking to leverage its impact, TCU conducted astrategic planning session with a targeted focus on increasingcommunity development and member impact. The first step: CDFIcertification with help from the federation.

“TCU had a vision, but not the specific skill sets required tosuccessfully submit a grant, said TCU CEO Tommy Cobb. “Thefederation's knowledge and expertise made a potentiallyoverwhelming process easy.”

TCU partnered with the Tuscaloosa Housing Authority and appliedfor a 2014 CDFI Financial Assistance Grant of $1.65 million forsecondary capital and loan loss reserves that will be used to fund60 affordable home loans with THA, as well as 500 affordable usedauto loans to lower-income consumers during a three-yearperiod.

“The need was out there,” said Development Officer Amy Price,citing the rebuilding of tornado-ravaged rental properties ashousing designed for groups of students and rented for as much as$750 per bedroom, rather than homes for low-income families.

“We had people in those (damaged) homes,” Price explained. Nowthat (the homes) are gone and being rebuilt, they're not beingrebuilt for the people who left. It's those people in between thatwe need to help. Those people that don't qualify for publicassistance but can't afford to pay the going rental rate.”

The work being done by low-income credit unions like TCU isinspiring and optimizes CUNA's vision to Unite for Good, and LICUs aregrowing loans and members faster than all federal credit unions asa group. If your credit union is low-income designated, please takeadvantage of this opportunity.

Applications will be accepted Feb. 3-14. Interested creditunions can learn more about the NCUA grant and CDFI certificationon Jan. 28 by attending a free webinar hosted by the federation andthe NCUA. Registration is online.

I have seen scores of credit unions successfully leverage LID,CDFI certification, grant funds and expertise from the federation.They are growing, profitable and, most importantly, they make avery meaningful difference in the lives of those people who aredeemed unbankable by most mainstream financial institutions.

And isn't that what we're all about? If your credit unionqualifies for the low income designation, I hope you will pursuethe NCUA grant opportunity for CDFI certification. Don't miss outon this great opportunity to strengthen your credit union andleverage your human impact.

Scott Butterfield, CUDE, CUCE, CCUE is principal ofYourCredit Union Partner in Sumner, Wash.