The National Credit Union Administration will be hosting its third and final round this year for credit unions to qualify to use the streamlined application for certification as community development financial institutions.
This qualification round will run from August 7 to September 1.
In the streamlined application process, which was developed by the NCUA and the Community Development Financial Institutions Fund, low income credit unions will submit data on loan originations and their target markets to the NCUA’s Office of Small Credit Union Initiatives.
The agency will then analyze each credit union’s products and services and other indicators to determine its “likelihood for certification. If the credit union in question is qualified to use the streamlined process, NCUA will provide an application form and the data necessary to complete it. The credit union will then complete the application and send it to the CDFI Fund for final determination of certification.
Eighteen federally insured, low-income credit unions already have obtained certification through the streamlined process, and low-income credit unions that do not qualify for the streamlined program may still obtain a CDFI certification through the CDFI Fund’s standard application, available here.