How CDFI grants help build stronger communities

When Copper Basin Federal Credit Union, asset size of $67 million, in Tennessee received its Community Development Financial Institutions (CDFI) Fund designation, President and CEO Jessica Grostic saw more than just an investment in her credit union. She saw an opportunity to invest directly in people.

A federal investment with a local impact

The CDFI Fund is the primary federal channel to get capital in communities that are often overlooked by mainstream financial services. CDFI credit unions are a central pillar of that network and the number of CDFI-certified credit unions has grown by 50 percent in recent years. Now, nearly 500 CDFI-certified credit unions are serving 19 million Americans through more than 2,800 branches across the country.

“The CDFI Fund has allowed us to live out our mission more fully by reaching members who might otherwise be excluded from traditional financial services,” Grostic said. “It’s helped us expand affordable loan programs, provide financial coaching, and support community initiatives that strengthen local families. Through these efforts, we’re not just serving our community, we’re helping it thrive.”

CDFI Fund dollars work harder than most: every federal dollar awarded to CDFI credit unions draws in more than $12 of private capital, powering everything from new storefronts to renovated homes to revitalized main streets. For communities like those served by Copper Basin Federal Credit Union, that funding translates into life-changing opportunities.

Turning grants into generational stability

Copper Basin prioritized areas of greatest need. Using member feedback and community data, they confidently focused on affordable housing, debt consolidation, and financial education. The credit union also invested in technology that allows members to apply for emergency loans 24/7, with no credit check required, ensuring immediate access when it matters most.

But the most visible impact came through a down payment assistance program, funded directly by a CDFI grant. Copper Basin set aside $1 million of its award to give back to the community, granting more than $700,000 in assistance so far in 2025.

“One example that stands out is a young family who had been renting for years but couldn’t save enough for a down payment despite steady income and good credit,” Grostic said. “Through our CDFI-funded down payment assistance program, we helped bridge that gap.” The credit union’s program allowed that family to purchase their first home in their own community, something they once thought was financially out of reach. Instead of paying rent, they’re now building equity and stability for their children’s future.

A perfect balance

For Grostic, the CDFI Fund doesn’t change what credit unions do. It amplifies how far they can reach.

“Traditional institutions often focus on profitability first. As a CDFI credit union, we focus on people,” she said. “The grant funding allows us to take on more mission-driven lending like offering small-dollar loans, flexible underwriting, and financial education that may not generate big returns but makes a real difference in members’ lives.”

Finding that balance of taking risks while maintaining accountability leans into principles that drive the credit union movement. For families in rural or underserved areas, it can mean the difference between financial exclusion and life-changing opportunity.

The next chapter of impact

Copper Basin plans to continue its down payment assistance program and hopes to pilot a rental assistance initiative with future CDFI funding. The goal: to help members facing sudden housing challenges stay stable and secure when the unexpected happens.

“We’ve seen too many long-term renters displaced when landlords sell or convert properties,” Grostic said. “With future CDFI funding, we can help keep these members stable by getting them into their first home or staying in a safe, affordable place to live.”

The multiplier effect

Programs like the CDFI Fund deliver an unheard-of return on investment. Not just in dollars, but in opportunity and community strength. Every CDFI dollar granted to a credit union multiplies, reaching people and places that big banks often overlook.

“I’ve seen firsthand the real impact it’s had in our community,” Grostic added. “Because of this funding, we’ve helped families and members who might never have been able to buy a car, purchase a home, or start building credit. We don’t depend on CDFI grants to survive, but they’re a powerful way to expand our mission and make a difference that a smaller credit union like ours otherwise couldn’t.”

Copper Basin’s story is one among hundreds across the nation, with each showing how credit unions use CDFI funding to open doors to opportunity. Across the country, nearly 500 CDFI-certified credit unions are proving that when federal investment meets cooperative purpose, communities thrive. Continued support for the CDFI Fund means more families achieving stability, more Main Streets revitalized, and a stronger future for the members credit unions were created to serve.