TACOMA, Wash. — Credit unions are beginning to receive long-awaited approvals for their Community Development Financial Institution, or CDFI, recertifications after a process that stretched more than two years, according to consulting firm CU Strategic Planning.
The firm said it has been notified that 12 credit unions it assisted through the recertification process have received approval from the federal CDFI Fund. CU Strategic Planning reported that it prepared and submitted applications for more than one-quarter of all credit union CDFI recertification applicants.
“CDFI certification validates the work credit unions do to serve underserved communities, but the impact itself happens every day in the form of increased economic opportunity for their members and communities,” said Stacy Augustine, president of CU Strategic Planning. “We’re pleased to see our credit unions complete the recertification process and continue carrying their mission forward.”
‘Significant Milestone’
The approvals mark a significant milestone in a recertification effort that has faced repeated delays. According to the firm, the federal CDFI Fund has been working through a backlog of roughly 1,000 recertification applications this year.
“The CDFI Fund has been working through a backlog of approximately 1,000 recertification applications this year,” said Mike Beall, chief experience officer at CU Strategic Planning.
The recertification deadline was originally scheduled for late 2024 but was later extended into a series of rolling deadlines throughout 2025. CU Strategic Planning attributed the delays to reduced agency staffing, government shutdowns and broader administrative policy-related slowdowns.
What Certification Provides
CDFI certification provides credit unions with access to capital through the federal CDFI Fund’s Financial Assistance and Technical Assistance programs, as well as other targeted funding opportunities and certain state grant programs. The funding is intended to help offset the costs of operating in historically underserved communities.
According to CU Strategic Planning, research released last year by the Filene Research Institute found that CDFI-certified credit unions generally experienced stronger asset, loan and membership growth than non-certified peers. The research also found higher returns on assets and equity without corresponding increases in delinquency or charge-off rates.
CU Strategic Planning, a subsidiary of Callahan & Associates, provides consulting services focused on mission-driven credit unions, including strategic planning, CDFI certification assistance, grant applications, lending analysis and executive recruiting.
