DUBUQUE, Iowa—As a community development financial institution (CDFI), Dupaco Community Credit Union earned a $1.826 million grant from the U.S. Department of Treasury to support the credit union’s ongoing response to economic challenges created by the COVID-19 pandemic, particularly in underserved communities.
The U.S. Department of the Treasury on Wednesday awarded $1.25 billion in COVID-19 relief funds to 863 CDFIs. The grants will be made through the Treasury’s CDFI Rapid Response Program and will provide necessary capital for CDFIs.
“In serving places that the financial sector historically hasn’t served well, CDFIs lift our whole economy up. We know that for every dollar injected into a CDFI, it catalyzes eight more dollars in private-sector investment,” said Treasury Secretary Janet Yellen in making the announcement. She said the grant funding might lead to an additional $10 billion in investment.
The CDFI Rapid Response Program grant funds will be used to support eligible activities such as financial products, financial services, development services and certain operational activities, and to enable CDFIs to build capital reserves and loan-loss reserves. The CDFI Fund designed the program to disburse the funds rapidly in light of the nationwide economic impacts of the COVID-19 pandemic.
Dupaco was certified as a CDFI in 2016 because of its primary mission and proven record of promoting community development, providing both financial and educational services, and maintaining accountability to a defined market.
“To expedite urgent pandemic relief support in the most effective way, the Treasury utilized its proven and vetted network of CDFIs,” said Dupaco President and CEO Joe Hearn. “The grant will help backfill and support the credit union’s ongoing member relief efforts, including small dollar loans, financial education and outreach, and small business backing. More than 25% of all Dupaco loans are for less than $2,500.”
ABOUT DUPACO COMMUNITY CREDIT UNION:
Dupaco Community Credit Union is a not-for-profit, member-owned financial cooperative. It is dedicated to the financial sustainability of its members, and specializes in customized financial counseling, money advice and education. It offers savings, loans, investments, insurance and wealth management products for individuals and businesses. Dupaco serves residents in 112 counties throughout Iowa, northwest Illinois and southwest Wisconsin. Chartered in 1948, membership totals more than 140,000 with assets exceeding $2.6 billion. Visit Dupaco at www.dupaco.com.
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