What It Means To Be A CDFI
Community Development Financial Institutions - or CDFIs - are mission-driven financial institutions that are dedicated to providing financial services to meet the needs of economically disadvantaged individuals within underserved communities.
CDFIs invest in local communities and the residents who live there by providing critically needed financing often unavailable from mainstream financial institutions.
CDFIs are certified by the U.S. Department of the Treasury's Community Development Financial Institutions Fund - known as the CDFI Fund. In order to become a certified CDFI, the financial institution must: have a primary mission of promoting community development; provide financial products and services; serve one of more defined low-income target markets; maintain accountability to the community it serves; and be a legal non-governmental entity.
All CDFIs share a common mission of serving low-income communities. CDFIs are commonly loan funds, credit unions, community banks, or venture capital funds.
Certified CDFIs are part of a national network promoting economic growth in America's underserved communities by financing businesses, creating jobs, and rebuilding neighborhoods.
As a CDFI, NuVista Federal Credit Union puts the community first and values local, economic growth.
How CDFIs Use Awards
The CDFI Fund does not give loans directly to individuals, businesses, or projects. Instead, the CDFI Fund helps to capitalize CDFIs that, in turn, provide financing to their local communities.
Once certified, CDFIs are able to apply for the CDFI Fund's grant, tax credit, and bond programs that are administered annually. After a multi-phased and rigorous competitive review process, only the most highly qualified CDFIs are selected to receive funding through the various programs.
Through the CDFI Funds programs, CDFIs are able to build their organizational capacity to better serve low-income individuals and communities that lack adequate access to affordable financial products and services.
NuVista Federal Credit Union provides individuals and businesses with financial services to promote local growth and economic development.
As a CDFI, NuVista Federal Credit Union is dedicated to serving the residents and businesses of our communities that historically lack access to financial services to encourage our community to participate in the mainstream economy.
How The Awards Benefit Communities
Since its inception, the CDFI Fund has awarded more than $2.9 billion dollars to community development organizations and allocated $54 billion in New Markets Tax Credits. The CDFI Bond Guarantee Program has also guaranteed $1.4 billion in bonds to date. These programs have been used to revitalize communities across America. (Figures updated annually)
CDFIs utilize resources from the CDFI Fund to provide financial products and services to low-income individuals and underserved communities. These resources go towards creating jobs, building infrastructure, developing commercial and residential real estate, and financing homeowners.
CDFIs help start and expand businesses and create jobs, and they help families buy or renovate homes. CDFIs finance needed facilities and organizations that provide vital services to their communities. CDFIs provide affordable financial services as an alternative to payday lenders and other predatory loan products.
Specifically, CDFIs finance affordable housing, small businesses, schools, community facilities, health care centers, grocery stores and many other types of investments that spark growth in communities across America.
How The Awards Benefit Our Communities
In 2021 NuVista was awarded $1.8 million in Rapid Response Funding (RRF) from the CDFI Fund. We quickly dispersed all $1.8 million (plus an additional $1 million) in loans to local, small businesses in need of financial assistance due to the COVID 19 pandemic. These funds were not related to the Paycheck Protection Program and were available to our communities through our CDFI designation.