Four Iowa Credit Unions Awarded $1.826 Million Each in Federal Grant Funding to Support Economic Recovery
IOWA – Four Iowa credit unions designated as Community Development Financial Institutions (CDFI) received $1.826 million respectively from the U.S. Department of Treasury through the Treasury’s CDFI Rapid Response Program (CDFI RRP). The funding provides capital for CDFIs to respond to economic challenges created by the COVID-19 pandemic, particularly in underserved communities.
The four Iowa credit unions certified as CDFIs in Iowa are Ascentra Credit Union, Community 1st Credit Union, Dupaco Community Credit Union and Veridian Credit Union. A financial institution may earn CDFI certification by the U.S. Treasury through demonstrating a mission of expanding economic opportunity in disadvantaged communities and underserved populations. Currently, no Iowa banks have received CDFI certification.
“We are proud that our Iowa credit union community has once again stepped forward to help Iowans and small businesses navigate the COVID-19 pandemic,” said Murray Williams, President and CEO of the Iowa Credit Union League. “The resource from these federal grants, delivered with the help of CDFI certified credit unions, will reach those Iowans who need help the most and enable credit unions to further aid Iowa’s economic recovery.”
The CDFI RRP grant funds may be used for a variety of purposes, which may include 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 Iowa Credit Union League is the trade association that represents Iowa credit unions and their 1.3 million members. Credit unions are not-for-profit, financial cooperatives owned and operated by their members. Iowans use their credit union membership to receive higher interest rates on savings and lower interest rates on loans. For information, visit www.IowaCreditUnions.com