National Small CU Assn. Launches Initiative to Help Smaller CUs Become CDFI-Certified

WASHINGTON — The National Small Credit Union Association has launched a community development initiative designed to help smaller credit unions pursue federal CDFI certification and funding while developing strategies to expand lending and strengthen long-term growth.

The NSCUA Community Development Initiative, available exclusively to association members, will connect participating credit unions with CU Strategic Planning, a Callahan Company, for assistance with Community Development Financial Institution certification and applications for CDFI Fund Technical Assistance Awards, the association said.

The program is intended to address a challenge NSCUA said frequently confronts smaller institutions: They may serve communities that qualify for community development programs but lack the staff and other resources needed to navigate certification, grant applications and strategic planning.

“We built NSCUA around a very simple idea: small credit unions deserve resources and opportunities designed specifically for them,” NSCUA President and CEO Joshua C. Urbick said in a statement.

Assistance Goes Beyond CDFI Certification

Participating credit unions will receive assistance with CDFI certification and Technical Assistance Award applications as well as several other services, including:

• Lending Growth Blueprint consulting.
• Strategic planning.
• A targeted lending campaign.
• CDFI 101 training.
• First-year certification reporting.

CDFI certification recognizes financial institutions that have a primary mission of serving economically underserved communities and populations. Certification can also make institutions eligible to pursue certain funding opportunities through the U.S. Treasury Department’s CDFI Fund.

NSCUA said smaller credit unions can face particular difficulties pursuing those opportunities because of limited staffing and resources.

“Our members already have the relationships, local knowledge and commitment to make an extraordinary impact in their communities,” said Mia Chernek, NSCUA senior vice president and chief strategy officer. “This initiative is about putting additional tools and expertise behind them.”

Chernek said the program is intended to make opportunities that might otherwise be too complex or resource-intensive more accessible to smaller institutions.

Linking Community Development With Lending Growth

CU Strategic Planning will provide the community development finance expertise for the initiative.

Stacy Augustine, president of CU Strategic Planning, said smaller credit unions often possess the local relationships and knowledge necessary for community development work but may struggle to devote employees and other resources to CDFI certification and grant development.

“Working with NSCUA gives us an opportunity to bring that support to more small credit unions while helping them connect their community development work with their long-term lending and strategic goals,” Augustine said.

NSCUA said the initiative is intended to go beyond helping institutions obtain certification or complete funding applications. It will also focus on developing lending strategies, organizational capacity and longer-term plans that can help participating credit unions sustain and expand their community development activities.

“Our goal isn’t simply to help a credit union complete an application,” Urbick said. “It is to help build stronger credit unions.”