Applications are due Oct. 5 for low-income credit unions that desire to be certified as Community Development Financial Institutions (CDFIs) using the “streamlined” certification process – a certification that is critical to securing funding next year – the federal regulator of credit unions said Monday.
The National Credit Union Administration (NCUA) said the Oct. 5 deadline is the final opportunity for federally insured credit unions to take advantage of the streamlined certification process in 2019. That’s an important deadline, NCUA indicated, because the Treasury Department has announced that, starting with next year’s application round, credit unions must be certified as CDFIs no later than the date the “Notice of Funds” is published in the Federal Register.
That notice is expected to be published in early 2020, NCUA stated.
According to Treasury, the change means that the CDFI Fund will no longer process funding applications and CDFI certification applications simultaneously for CDFI Program and Native American CDFI Assistance Program (NACA) award round applicants.
“Any organization that is not a certified CDFI as of the date the NOFA is published in the Federal Register that applies for a CDFI Program or NACA Program Financial Assistance award will be found ineligible for that funding round,” Treasury said in a Sept. 10 notice.
Treasury noted that the change only affects an organization if it is not now certified and is planning to apply for a CDFI Program or NACA Program Financial Assistance award for the FY 2020 funding round.