Five low-income credit unions representing 114,406 members from Mississippi to the Bronx have earned certification as community development financial institutions, the NCUA announced Monday.
The five credit unions with combined assets of $744 million are:
• Central Sunbelt Federal Credit Union, located in Laurel, Miss. ($208 million in assets, 33,811 members);
• Chicago Municipal Employees Credit Union, Chicago ($38 million in assets, 12,342 members);
• ELGA Credit Union, Burton, Mich. ($476 million in assets, 64,411 members);
• New Covenant Dominion Federal Credit Union, Bronx, N.Y. ($854,295 in assets, 655 members);
• Softite Community Federal Credit Union, Martins Ferry, Ohio ($21 million in assets, 3,187 members).
The five credit unions are the first of 500 low-income credit unions to complete certification as community development financial institutions among 500 credit unions that the NCUA invited last fall to be considered for a new streamlined process.
The simpler process was developed by NCUA and the Community Development Financial Institutions Fund, as part of a joint effort, started the process last year to increase the number of certified credit unions.
NCUA identifies low-income credit unions that might qualify, using data the agency collects through its regulatory process.
The credit unions then must submit loan transaction data to NCUA for confirmation that it has sufficient loans to CDFI-eligible individuals and geographic areas. Credit unions that meet that requirement are permitted to use the streamlined application to apply for certification.
NCUA recently announced that the effort to expand the number of CDFI-certified credit unions will become a permanent program.
