Royal Credit Union (Royal) has been awarded $640,000 from the U.S. Department of the Treasury’s Community Development Financial Institution (CDFI) Financial Assistance (FA) grant program. The awards were announced on Tuesday, February 28, 2023. Royal is one of 252 CDFIs, including 73 credit unions, receiving funds that will enable CDFIs to substantively expand lending and investment activity in economically distressed neighborhoods and communities.
Link to CDFI Fund news release: U.S. Treasury Awards in Excess of $194 Million to Spur CDFI Investment in Distressed and Underserved Areas across the Nation | Community Development Financial Institutions Fund (cdfifund.gov)
Link to CDFI Award Book: 2022_CDFI_Award_Book.pdf (cdfifund.gov)
Royal’s work as a CDFI is focused on expanding access to quality credit products and improving financial well-being for all. Royal will use grant funds to increase overdraft protection lines of credit as well as credit cards to underbanked and unbanked individuals. The goal is to support Members/consumers who may not have access to emergency funds when they need them and turn to predatory payday lenders. This focus also builds on the financial education work that Royal is already doing in the schools and in the community.
Royal is 1 of more than 1,400 certified CDFIs that work in low-wealth communities across the United States. There are only seven credit union CDFIs operating in WI and MN. CDFIs are mission-driven financial institutions that bring affordable credit and financial services to individuals and businesses, often in minority and economically distressed communities.
The application was written and submitted by Royal’s internal CDFI team. The team works together to deploy and track grant funds for the benefit of the credit union’s Members. Royal became CDFI certified in 2015. Including the latest announcement, Royal has received six grants under the CDFI program totaling over $7.59 million.