Bay FCU receives $1.8M community development grant to support members
U.S. Treasury and CDFI’s Rapid Response Program
CAPITOLA, CA (July 8, 2021) — Bay Federal Credit Union has announced it was awarded $1.8 million from the U.S. Treasury Department as part of the Community Development Financial Institution (CDFI) Rapid Response Program.
The program awarded a total of $1.25 billion in grants to 863 institutions across the country that are officially certified as CDFIs, and it will provide necessary capital for CDFIs to respond to economic challenges created by the COVID-19 pandemic. To receive the CDFI certification, organizations must have a primary mission of promoting community development and provide development services alongside their financial activities.
Bay Federal Credit Union will use these funds and invest them in their local community through home loans, auto loans, and through programs that support members who may be financially struggling due to the pandemic. The credit union has also recently lowered its home loan rates to do its part to make homeownership more accessible for both first-time homebuyers and refinance candidates.
“We are honored to receive this grant,” said Carrie Birkhofer, President and CEO of Bay Federal Credit Union. “The combination of the pandemic and rising costs in our community, including housing, have disproportionately impacted certain groups of people in our community. The grant funds will allow us to expand financial support to those in need.”
Bay Federal is one of 244 credit unions that received grant funds. The awards were announced in June by Vice President Kamala Harris, Treasury Secretary Janet Yellen, U.S. Senator Mark Warner, and U.S. Representative Maxine Waters.
About Bay Federal Credit Union
Bay Federal Credit Union is a full-service, not-for-profit financial institution that serves over 86,000 members and 2,400 local businesses throughout Santa Cruz, San Benito, and Monterey counties. With more than $1.6 billion in assets, Bay Federal is the largest member-owned financial institution in the region. The organization has been proudly serving its members and the community since 1957. Bay Federal is a certified Community Development Financial Institution, with a primary mission of promoting community development alongside their financial activities. Bay Federal has an award-winning employee volunteer program in which employees have given their own money and volunteer for numerous local schools, nonprofit organizations, and community events each year.