Three Iowa credit unions designated as Community Development Financial Institutions (CDFI), including Veridian Credit Union and Community 1st Credit Union, received a total of $2.075 million in grant funding from the US Department of Treasury through the Treasury’s Financial Assistance (FA) program.
The CDFI grants make an impact by providing awards to organizations that make credit, capital, and other critical financial services available to disadvantaged businesses and low-income communities throughout the country, according to a release from the Iowa Credit Union League (ICUL).
The funds may be used for a variety of purposes, including developing alternatives to payday loans, assisting borrowers who are living paycheck to paycheck, integrating financial education in local communities and helping persons with challenging credit histories obtain loans.
The three Iowa credit unions receiving CDFI FA grants, along with the amounts awarded to each, include:
- Casebine Community Credit Union – $550,000
- Community 1st Credit Union – $625,000
- Veridian Credit Union – $900,000
Both Community 1st and Veridian have branches in the Corridor.
“The CDFI designation underscores how these Iowa credit unions are living our ‘people helping people’ philosophy and shows the tremendous impact made on the communities they serve,” said Murray Williams, CEO and president of the Iowa Credit Union League. “These grant dollars will help the Iowans who need it most and break down barriers to financial inclusion.”
Since the establishment of the CDFI Fund, CDFIs headquartered in Iowa have leveraged a total of $6,854,534,323 in federal grant awards to support lending in CDFI target markets for affordable housing, small and agricultural businesses, responsible personal loans, community facilities and more.
A financial institution may earn CDFI certification by the US Treasury through demonstrating a mission of expanding economic opportunity in disadvantaged communities and underserved populations.
There are currently nine certified CDFIs in Iowa. Of these, five are credit unions, and no banks currently have CDFI certification.
