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
To learn more about UCEDC, our CRA-eligible programs, and building a relationship with your bank, speak with Adam Farrah, Vice President,  at 908-527-1166.