Royal Credit Union has been awarded more than $1.8 million from the U.S. Department of the Treasury’s Community Development Financial Institution (CDFI) Rapid Response Program. The awards were announced today by Vice President Kamala Harris at the White House with Treasury Secretary Janet L. Yellen. Royal is one of 863 CDFIs receiving the COVID-19 relief funds.
Link to CDFI Fund news release: U.S. Treasury Awards $1.25 Billion to Support Economic Relief in Communities Affected by COVID-19 | Community Development Financial Institutions Fund (cdfifund.gov)
Royal’s work as a CDFI is focused on expanding access to quality credit products and improving financial well-being for all. The Rapid Response Program provides necessary capital for CDFIs to respond to economic challenges created by the COVID-19 pandemic. Royal will use grant funds to lend deeper into target markets, specifically low-income, distressed, and underserved people. This will include meeting a variety of needs ranging from small-dollar signature loans to auto loans and mortgages.
Royal is 1 of more than 1,200 certified CDFIs that work in low-wealth communities across the United States. There are only 6 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 Royal Members. Royal became CDFI certified in 2015. Including today’s announcement, Royal has received four grants under the CDFI program totaling over $6.4 million.
Link to CDFI info blog on rcu.org: Royal Credit Union is a Community Development Financial Institution…Here’s What That Means | Royal Credit Union (rcu.org)