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Three Missouri Credit Unions Receive CDFI Grants

The U.S. Treasury Department awarded grants to five Community Development Financial Institutions (CDFI) in Missouri—and three of these recipients were credit unions! This was made possible through the Missouri Credit Union Charitable Foundation's (MCUCF) statewide CDFI initiative. To date, MCUCF has helped 25 credit unions in Missouri earn CDFI certification and apply for grants. 

These funds are meant to enable CDFIs around the country to increase lending and investments in low-income and economically distressed communities. The three credit unions in Missouri included Assemblies of God Credit Union, Northeast Regional Credit Union and River Region Credit Union.

"River Region Credit Union is excited to receive this grant," says Rick Nichols, president/CEO of River Region. "As proposed in our grant request, we will be using the funds as part of our 'Get to Work' program. The idea is to equip Missourians with the means to have transportation to 'Get to Work.' Through this program, we will offer affordable auto loans to ensure that those who otherwise might be denied credit due to a credit score or employment status will have transportation."

There are two types of grants—financial assistance (FA) and technical assistance (TA). Financial assistance grants award up to $2 million and are meant to allow CDFIs to sustain and expand lending capital, loan loss reserves, capital reserves, financial services and development services. Technical assistance awards are available up to $125,000 for capacity development for organizational sustainability and success, such as purchasing equipment, hiring consulting or contracting services, or training staff or board members.

Each credit union received the full amount that they applied for:

  • Assemblies of God – more than $1.9 million (FA)
  • Northeast Regional – more than $122,000 (TA)
  • River Region – more than $1.7 million (FA)

In total, these credit unions received more than $3.8 million in CDFI grants.