The NCUA and the U.S. Treasury Department’s CommunityDevelopment Financial Institutions Fund signed an agreementThursday that will streamline the application process forlow-income credit unions to become certified as communitydevelopment financial institutions.

Credit unions that obtain CDFI certification can access trainingand competitive award programs provided by the CDFI Fund, and theresources can aid their capacity to provide underserved communitieswith access to safe and affordable financial services.

“This memorandum of understanding opens up enormouspossibilities for credit unions,” Chairman Debbie Matz said. “Byfacilitating the CDFI application process and, ultimately,increasing the number of certified CDFI credit unions, we’relaying the foundation for greater access to affordable financialservices and more investment in local communities. This will helpcredit unions better serve members and communities that have beendifficult to reach, and that will help more people build wealth andmore secure financial futures for themselves and theirfamilies.”

CDFIs nationwide are making a real difference in low-incomecommunities by providing consumers with safe and affordablefinancial services and by providing neighborhood businesses withaccess to capital, CDFI Fund Director Annie Donovan said.

“Many low-income credit unions are already performing thisimportant work, but need more support. By partnering with (the)NCUA to increase the number of credit unions certified as CDFIs, wewill not only expand access to the CDFI Fund’s programs but alsoreach more unbanked and underbanked individuals," she said.

The two organizations launched a plan with a goal of doublingthe number of certified CDFI credit unions by the end of 2016.There are currently 295 credit unions certified as CDFIs. Themajority of these also hold NCUA’s low-income credit uniondesignation.

Increasing the number of certified CDFI credit unions couldsignificantly expand funding that could be used to offer financialservices to underbanked low-income individuals and make investmentsin local businesses, affordable housing and community facilities,the NCUA said.

The move produced praise from NAFCU.

“We appreciate the collaborative efforts of NCUA and the CDFIFund to help make it easier for credit unions to access CDFI fundsand resources in order to better serve the financial needs oflow-income and underserved communities,” President/CEO Dan Bergersaid. “Credit unions, as not-for-profit, member-ownedfinancial cooperatives, are uniquely well-suited to fill thefinancial services needs of these communities.”

CUNA also supported the action.

"We applaud the efforts of (the) NCUA and U.S. Treasury todouble the number of CDFI certified credit unions in 2016. Thefunding and technical assistance made available will help thesecredit unions better serve their members, strengthening thecommunity commitment they are able to make," Chief Advocacy OfficerRyan Donovan said.