13 California CUs Receive Equitable Recovery Program Funds

Congratulations to the 13 credit unions headquartered in California that were awarded $42.5 million in Community Development Financial Institution Equitable Recovery Program (ERP) funds!

This week, the CDFI Fund awarded more than $1.73 billion to CDFIs through the CDFI Equitable Recovery Program (ERP) developed in response to the economic impacts of the COVID-19 pandemic in low- and moderate-income U.S. communities that were disproportionally harmed by health and economic effects of the pandemic.

The 13 California credit unions are:

• AltaOne FCU (Ridgecrest, CA) — $2,478,839
• Bay FCU (Capitola, CA) — $3,718,258
• CBC FCU (Oxnard, CA) — $2,478,839
• CoastHills CU (Santa Maria, CA) — $2,478,839
• Excite CU (San Jose, CA) — $2,478,839
• First Imperial CU (El Centro, CA) — $4,957,678
• MERCO CU (Merced, CA) — $3,718,258
• Nuvision FCU (Huntington Beach, CA) — $2,478,839
• Ontario Montclair School Employees FCU (Ontario, CA) — $4,957,678
• Santa Cruz Community CU (Santa Cruz, CA) — $4,957,678
• Travis CU (Vacaville, CA) — $1,652,559
• Tucoemas FCU (Visalia, CA) — $2,478,839
• Valley First CU (Modesto, CA) — $3,718,258

This is the second and last installment of the funding set aside as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to be deployed by the CDFI Fund to expand the capacity of CDFIs to help revitalize communities most impacted. As one of the CDFI Fund’s most flexible programs for how awards are used, the CDFI ERP allows recipients to:

• Receive funding to expand lending, grant-making, and investment activities in low- or moderate-income communities and to borrowers, including minorities, which have significant unmet capital and financial services needs and have experienced disproportionate economic impacts from the COVID-19 pandemic.
• Build organizational capacity and acquire technology, staff, and other tools necessary to accomplish the activities under a CDFI ERP Award.

Out of the $1.73 billion, 134 CDFI-certified credit unions across the United States received $364 million (with an additional $226 million going to 69 “cooperativas” in the U.S. territory of Puerto Rico).

Inclusiv and the California and Nevada Credit Union Leagues were instrumental in shaping the program’s delivery, advocating for terms and conditions favorable to community development credit unions and the low-income communities they serve — the very communities it is intended to impact.

Community development credit unions became financial first responders during the pandemic, providing access to vital financial services, lending and critical information.

“The Leagues applaud the CDFI Fund’s Equitable Recovery Program and all the preparation and hard work Inclusiv has done to ensure deployment of these funds to historically underserved areas,” said Daniel West, vice president of impact and development for the Leagues. “CDFI credit unions and the communities they serve across California will be transformed. In addition to increasing access to affordable financial services and loans in low-income and minority communities, this flexible funding will help CDFI credit unions invest in the systems, technology, and staff needed to ensure sustainable growth.”

The CDFI ERP grant funds may be used to support lending related to small businesses and microenterprises, community facilities, affordable housing, commercial real estate and intermediary lending to non-profits and CDFIs. The funds can also be used for financial services, development services to support borrowers, and operational support for the CDFI grant recipient.

The 603 CDFI ERP award recipients are headquartered in 44 states, the District of Columbia, Guam, and Puerto Rico. Recipients include:

• Credit unions: 203 organizations receiving $590.3 million in awards.
• Loan funds: 264 organizations receiving $615.5 million in awards.
• Banking entities: 129 organizations receiving $513.7 million in awards.
• Venture capital funds: seven organizations receiving $15.5 million in awards.