Credit unions deliver big returns with CDFI grants

The positive impact of credit unions’ efforts as Community Development Financial Institutions (CDFIs) nationwide is well documented. America’s Credit Unions pushed back on a recent American Banker op-ed that not only targets credit unions’ tax status but also makes false claims about credit union access to the CDFI Fund.

“These attempts by banks to create a so-called ‘level playing field’ would do anything but that. These tired calls are deeply flawed, relying on deliberate misdirection and chronic misinformation,” stated America’s Credit Unions President/CEO Jim Nussle.  

“As not-for-profit financial cooperatives, credit unions are uniquely positioned to use the CDFI Fund to benefit communities nationwide. Congress deliberately included credit unions when creating the CDFI Fund and the 2000 implementing regulation explicitly affirmed that insured credit unions can be certified as CDFIs and receive funding. Any claims to the contrary ignore both the law and the facts.”

The Treasury Department defines CDFIs as “community-based organizations that expand economic opportunity in low-income communities and provide financial products and services to individuals and businesses often underserved by traditional financial institutions.”

While critics point to the fact that credit unions hold 65% of CDFI assets, their complaints do not address the competitive application process all applicants – including credit unions – go through, and the impact credit unions make across the country with CDFI Fund grants.  

“And the facts speak volumes: for every dollar of CDFI funding received, credit unions deliver an average of $12 in measurable community impact. That return has everything to do with credit unions’ mission to put people first,” continued Nussle. “That’s exactly why Congress should continue to support credit unions’ role in strengthening underserved communities and addressing the unique needs of rural communities and urban centers to ensure small business owners—who are the economic engine of every Main Street in America—and the more than 144 million hardworking people who count on credit unions today and into the future.”