US credit unions have been awarded $45.8m in government funding to serve disadvantaged communities.
The money comes from the Community Development Financial Institutions Fund (CDFI Fund), established in 1994 to promote economic renewal and community development in low-income communities.
Funding is available to certified CDFIs – some of which are credit unions – allowing them to inject new sources of capital into neighbourhoods that lack access to financing.
The main purpose of CDFIs is to expand economic opportunities in low income communities by providing access to financial products and services for local residents and businesses.
Funding has gone to 397 CDFIs this year, including 111 credit unions which have received awards totalling $45.8m. Thirteen of these credit unions were awarded funds for the first time.
Inclusiv, the National Federation of Community Development Credit Unions, has worked with a number of these credit unions to help them access the fund.
“We are delighted that this round recognises the contributions of CDFI credit unions of all sizes in serving underserved communities,” said Cathie Mahon, president and CEO of Inclusiv.
“Inclusiv is pleased to have worked with so many credit unions to access the Fund and the work is truly paying off. The number of minority designated credit unions and first time award winners is a game changer.”
