According to Inclusiv, OnPath is the largest minority depository institution and the fourth largest CDFI in Louisiana.

The credit union recently earned its Juntos Avanzamos designation and plans to use the loan to deepen the credit union's capacity to serve Hispanic communities through a new Spanish-language micro-site.

OnPath also plans to continue creating asset building opportunities in low-income communities and Black and Hispanic communities, according to Inclusiv.

In addition, the credit union will further its commitment to offer complimentary financial education curricula in high schools, the inclusion of minority communities in lending programs, the expansion of branch services in underbanked neighborhoods, and the provision of scholarships, homeownership support and entrepreneurship opportunities through the OnPath Foundation, Inclusiv said in its prepared statement.

The loan came three months after OnPath lost an appeals court ruling to repay more than $12 million it received from the CDFI fund.

An audit by the Office of Inspector General for the U.S. Department of Treasury, which administers CDFI, claimed former executives allegedly submitted invalid information when they applied for CDFI certification in 2005 and were awarded millions of dollars from 2006 to 2012.

The credit union filed a complaint against the U.S. Treasury in May 2020, arguing the OIG's findings were unsupported by evidence and based on faulty analysis.

In January 2022, however, U.S. District Court Judge Sarah S. Vance in New Orleans rejected OnPath's arguments because of unexplained and troubling aspects in its CDFI certification application and ordered the credit union to repay the funds. A month later, OnPath appealed the ruling.

In July, a three-judge panel of the U.S. Court of Appeals for the Fifth Circuit for the Eastern District of Louisiana affirmed the district court's ruling.

The New York, N.Y.-based Inclusiv, which helps credit unions obtain CDFI designation, said in its prepared statement that the appeals court decision "may have the unfortunate and unintended consequence of discouraging mission-driven credit unions, especially those without robust data management capabilities, from pursuing CDFI certification and grant funding, which have been vital tools in expanding access to affordable and responsible financial services and credit across the country."

"OnPath FCU has a strong track record of serving under-resourced BIPOC (Black, Indigenous and People of Color) communities and played a critical role as a financial first responder after Hurricane Katrina," Inclusiv said. "Through this work the credit union has proven its commitment to equitable community development and its ability to meet the credit and financial services needs of underserved communities."

Jared Freeman, president/CEO of OnPath, said he was disappointed with the appeals ruling that stems from what he described as an "unfortunate oversight nearly 20 years ago." At that time, Freeman was not an employee of the credit union.

"The judicial system continues to fail at addressing the most substantive issue in the case, whether OnPath was in fact eligible for certification. It is undisputed throughout this process that OnPath FCU has served as a good steward of all community funds entrusted to us. We remain a CDFI-certified institution, as we have been for 10-plus years," he said in a prepared statement. "This investigation never found any misuse of funds or fraud on OnPath's part. During this entire time, OnPath continued to be certified as a CDFI Institution. Even after an audit by the CDFI, it was determined that OnPath was, in fact, eligible to be a CDFI institution during those years in question."