Earn CRA Credit by Working With UCEDC
Partnering with UCEDC can earn CRA credits for your bank. UCEDC is a US Department of Treasury-designated Community Development Financial Institution (CDFI). CDFI’s are private-sector, financial intermediaries with community development as their primary mission.
The revised Community Reinvestment Act regulation of 1995 explicitly recognizes bank loans and grants to CDFIs as a qualified CRA activity. In addition, when banks and CDFI’s co-lend, the bank receives CRA credit. Lastly, your bank’s participation with a CDFI in financial literacy/educational programs would also qualify for CRA credit. UCEDC offers over 100 such trainings per year.
Therefore, when a bank supports UCEDC, a state-wide CDFI, in the following ways, it is a CRA eligible activity:
- Partner with, or participate in a loan with UCEDC
- Make a loan to UCEDC
- Provide a grant to UCEDC
- Participate in a UCEDC’s financial educational program
- Serve on the UCEDC Board of Trustees
Partnering with UCEDC on a “Second Look Program” whereby the bank refers potential borrowers to UCEDC can also earn the bank CRA consideration.
UCEDC supports over a dozen banks in their CRA efforts through partnerships that meet the CRA tests of:
- complex in their creativity
- innovative for the institution
- responsive to community needs
- demonstrates the institution’s leadership in the field