244 credit unions received $401.8 million in awards through CDFI RRP

by NAFCU Newsroom

Yesterday, the Department of Treasury announced community development financial institutions (CDFIs) awards from its Rapid Response Program (RRP) and 244 credit unions received $401.8 million in grants.

The grants will be made via Treasury’s CDFI RRP and will be able to provide capital for CDFIs to respond to economic challenges generated by the COVID-19 pandemic, mainly in underserved communities. The CDFI RRP grant funds will be used to support eligible activities such as financial products, financial services, development services, and certain operational activities, and to enable CDFIs to build capital reserves and loan-loss reserves.

“CDFI credit unions have always worked hard to help low-income and underserved communities gain access to financial services,” said NAFCU President and CEO Dan Berger. “During the pandemic, credit unions stepped up to the plate to ensure these communities had the financial resources needed to weather the pandemic. NAFCU has advocated tirelessly for additional CDFI funding so credit unions can take good financial care of their local communities and to help Americans in need of support. For every dollar the U.S. Treasury has awarded in new grant funding, there is a CDFI that will put each dollar to good use towards the economic recovery.”

NAFCU hosted a free webinar earlier this year with representatives from Inclusiv to review the RRP application process and how CDFI credit unions can prepare to apply for grants. The CDFI RRP on-demand webinar is available until February 26, 2022.

 

 

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