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 may also receive CRA credit. Lastly, your bank’s participation with a CDFI in financial literacy/educational programs for low/moderate individuals or businesses would also qualify for CRA credit.
Therefore, when a bank supports UCEDC, a state-wide CDFI, in the following ways, it is a CRA eligible activity:
- Partners with, or participates in a loan with UCEDC (ie. SBA 504 loans)
- Makes a loan to UCEDC
- Provides a grant to UCEDC
- Participates in a UCEDC’s financial educational program
- Purchases a loan(s) from UCEDC ( loans in LMI areas are given more consideration)
- Serve on the UCEDC Board of Trustees
Referring a low/moderate income client to UCEDC for a loan is given CRA consideration.
UCEDC supports over a dozen banks in their CRA efforts through loan referrals, bank borrowing, as a grant recipient, or through educational opportunities.