The U.S. Department of the Treasury recently announced that its Community Development Financial Institutions Fund (CDFI) awarded over $1.73 billion in grants to 603 Community Development Financial Institutions through the CDFI Economic Recovery Plan (ERP) to help mitigate the economic impacts caused by COVID-19. Y-12 Federal Credit Union (Y-12 FCU) is one of the financial institutions to be awarded grant funding, receiving approximately $2.5 million. Authorized by the Consolidated Appropriations Act, 2021 (Pub. L. 116-260), this recovery program was designed to assist financial institutions supporting low-and moderate-income communities in helping efforts to reclaim economic stability caused by the pandemic.
Of the 603 recipients, 203 organizations were credit unions, receiving over $590 million in grant dollars. Y-12 FCU has a lengthy history of supporting underserved communities through financial education, The Y-12 FCU Gives Foundation, and many other community outreach services.
Chief Financial and Strategy Officer Dustin Millaway explained that being awarded this grant will substantially increase the credit union’s ability to help families restore the financial hardships from COVID-19. “When we applied for this specific grant, we did it with the realization that many in our local East Tennessee communities are still experiencing financial trauma from the pandemic. We hope our communities know that we take their futures seriously, which is why we have researched many support avenues to help them recover. I am proud of this award and ready to put it into action,” said Millaway.
Laura Stewart, vice president of finance spearheaded the CDFI application’s rigorous and lengthy process on behalf of the credit union. “From discovery through completion, Laura was instrumental in our credit union being awarded the grant. Her diligence in the process is a testament to her commitment to our members and the communities we serve,” Millaway added.
According to the most recent data published in 2021, 13.6% of Tennessee’s population lived below the poverty line. Through grant awards like the CDFI-ERP and a hyper-focus on financial education, Y-12 FCU says it's intent on renewing hope for families and their futures.