Despite only banks being eligible for the awards, credit unions still benefit from increased CDFI investment.
The Community Development Financial Institutions (CDFI) Fund on Wednesday announced it has awarded $26 million to 158 Federal Deposit Insurance Corp. (FDIC)-insured banks as part of its FY21 round of the Bank Enterprise Award (BEA) Program.
Through the program, the CDFI provides monetary awards to FDIC-insured depository institutions that have demonstrated an increase in investments in CDFIs or through their own lending, investing or service activities in the most economically distressed areas.
How the Awards Impact Credit Unions
The Treasury Department said the banks receiving the award had worked with 15 credit unions as “partners.”
BEA distressed communities are defined as those where at least 30% of residents have incomes that are less than the national poverty level and where the unemployment rate is at least 1.5 times the national rate.
“These banks are not just lending in the most highly distressed communities of the nation,” CDFI Fund Director Jodie Harris said in a statement. “They are providing critically needed loans and investments that many other financial institutions will not make. Most notable this year is the nearly 243% increase in qualified loans to businesses.”
In the FY21 round, the 158 award recipients increased loans and deposits to CDFIs by $36.1 million, and equity-like loans and grants to CDFIs by $1.29 million.
To learn more about CDFI eligibility for credit unions, as well as the various award and grant possibilities it could unlock, visit our CDFI Certification page or contact us today for a free opportunity assessment.