Page 27 - Michigan Credit Union League: 2017 Q3 Contact

MAKING SENSE OF YOUR RESOURCES

This past June at the 2017 Annual Convention & Expo- Community Development Coordinator Greg Dietrich. As soon as
sition, Frankenmuth Credit Union was honored with that designation comes through, credit unions immediately expe-
Michigan Credit Union League & Affiliate’s Innovation rience benefits, such as seeing their member business lending
Award. The award recognized two specific programs cap removed.
that Frankenmuth CU established over the previous
year: MIHome and MIGrow. Once Frankenmuth CU had their LID, Dietrich said it was easy
to leverage it for a CDFI Fund. Per the U.S. Department of the
MIHome is a mortgage loan program that is helping Treasury, the CDFI Fund mission is to provide access to affordable
low- to-moderate income families with low credit scores financial products and services in underserved communities.
find and maintain homes, while MIGrow is a business
loan program that enables financing and expansion So far, they’ve done more than $1 million in loans through the
funds for farmers markets and grocery retailers within MIHome program. “We know that we’re helping people out that
USDA-designated food deserts. are credit-challenged and low-income,” Dietrich said. “We know
that they appreciate this product. These are folks that wouldn’t
Frankenmuth CU was able to put these innovative programs be able to get a mortgage anywhere else, and with the CDFI
in place with the aid of two federal government resources: Fund we’re able to help them out.”
the National Credit Union Administration’s (NCUA) Low-
Income Designation (LID) and the U.S. Department of Between the inception of MIHome and MIGrow, and how they have
Treasury’s Community Development Financial Institutions leveraged federal resources to fund them, Frankenmuth CU has
(CDFI) Fund. provided a blueprint that other credit unions can follow. The CDFI
Fund mission—to allow financial institutions to provide greater
To obtain an LID, the NCUA designates that 50 percent access to financial products and services in order to support fami-
or more of your members reside in what are deemed lies and revitalize neighborhoods—fits squarely with our industry’s
low-income ZIP codes. “It’s a quick process. It’s just mission. Credit unions that believe their field of membership fits
sending your information to the NCUA and it takes a couple NCUA’s LID criteria should take the time to apply, in order to grow
weeks to hear back,” said Frankenmuth CU Marketing & their capacity for serving the underserved.

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THIRD QUARTER 2017  I  CONTACT 27