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Inclusiv CEO, CU CEOs talk CDFIs in panel at Congressional Caucus
Inclusiv CEO Cathie Mahon was joined by President and CEO of Freedom First Credit Union Paul Phillips and President and CEO of River City Federal Credit Union Jeff Ivey for a panel discussion on the importance of community financial development institutions (CDFIs) in underserved communities at NAFCU’s 2022 Congressional Caucus.
When describing the impact that being a CDFI has had on their communities, both Phillips and Ivey pointed to consistent small business lending and reaching underserved areas as an integral part of their engagement strategy. By having CDFI Certification, Phillips said, “There’s lots of opportunities to connect with the city and the citizens.” Ivey noted that River City Federal Credit Union, located in San Antonio, Texas, had the ability to create a mutually beneficial relationship with the city. He explained that the relationship started by providing accounts to city workers to allow direct deposit to all employees.
The panel also remarked that while the CDFI certification process and working with the CDFI Fund “is not always an easy process,” the benefits outweigh the complications due to the Fund’s ability to provide secondary capital. With that capital, Phillips explained that he was able to expand their products and services offering, while also experimenting with new options to provide to members.
Speaking directly to attendees, Mahon reminded credit unions interested in becoming a CDFI that “it’s not a one-size-fits-all.” Instead, she reiterated that becoming a CDFI is about “how well you’re lending and getting good products and services out to communities that need it.” In April, NAFCU and Inclusiv met with Chairman Harper to discuss the NCUA’s CDFI streamlined application process.
NAFCU will continue to work with the NCUA and CDFI Fund to help credit unions navigate the CDFI certification process.