WASHINGTON (9/14/15)--Twenty-three credit unions received grant awards last week from the U.S. Treasury’s Community Development Financial Institutions (CDFI) Fund and Native American CDFI Assistance (NACA) program. A total of $202 million in grants was awarded to 195 CDFIs for fiscal year 2015.
Twenty-one credit unions received CDFI Fund awards, totaling nearly $30 million. Of those funds, $362,815 was awarded to three credit unions in technical assistance (TA) grants. TA awards of up to $125,000 are awarded to develop technological capacity, which includes purchasing equipment, hire consulting or contracting services pay salaries or train staff.
A total of $1 million went to two credit unions, Promise CU of Houston, Texas ($700,000) and Red River Mill Employees CU of Natchitoches, La. ($300,000), under the Small and Emerging CDFI Assistance program. These entities use the awards to enhance capacity to serve their target markets.
The remaining $28,480,767 was given to 16 credit unions as financial assistance (FA) awards. FA awards are given up to $2 million to finance capital, loan-loss reserves, capital reserve or operations.
Credit unions made up eight of 14 first-time FA awardees for FY 2015, with those credit unions receiving a total of $111,774,767.
The NACA program provides both FA and TA awards to Native CDFIs, which are certified by the CDFI Fund as directing at least 50% of its activities toward serving Native Americans, Alaska Natives, or Native Hawaiians.
Two credit unions, Hawaii First FCU of Kamuela, Hawaii ($1 million) and Lakota FCU of Kyle, S.D. ($750,000) received NACA FA awards. Those awards will go to supporting the credit unions’ financing activities in their communities.
FY2015 also marks 20 years since the creation of the CDFI Fund. In 1996, the first round of awards, 31 CDFIs received $35.5 million in grants.
As of July 31, credit unions make up 256 of 955 total CDFIs and nine of 70 certified Native CDFIs.