NFCDCU CAPITALIZATION PROGRAM - Inclusiv



|Community Development Investment Program for CDCUs |

|APPLICATION FOR SECONDARY CAPITAL |

The purpose of the Community Development Investment Program is to provide capital to strengthen the capacity of CDCUs in furthering the Federation’s mission of “helping low- and moderate-income individuals and communities achieve financial independence.”

The Federation’s Secondary Capital initiative is intended to advance the institutional community development missions of our member credit unions. As a Secondary Capital borrower, an institution’s community development impacts should relate to specific activities and products for your community and include measurable, reportable impact goals over the life of this loan. In this application, you will be asked to provide a statement of purpose for this secondary capital investment as well as a copy of your business and community development plan outlining the impact you have and expect to have as a result of this loan.

CREDIT UNION AND CONTACT INFORMATION

|Date: | |

|Charter Number: |Credit Union Name: |

|Contact Person: |Title: |

|Email: |Telephone: |

|Mailing Address: |

| |

1. CREDIT UNION PROFILE.

• Is your credit union a Federation member?* ☐ Yes | ☐ No*

• Is your credit union low-income designated? ☐ Yes | ☐ No, but our application is pending| ☐ No**

• Is your credit union CDFI certified? ☐ Yes | ☐ No, but our application is pending| ☐ No

*Please note that while any credit union may apply for secondary capital, only Federation members will receive funding from the Community Development Investment Program. By completing this application, your credit union is committing to becoming a member of the Federation and maintaining membership throughout the term of the loan if your credit union receives and accepts and funding commitment from CDIP.

** NCUA regulations only allow credit unions with low-income designation to receive secondary capital.

|Credit Union Charter Type: | |

|Field of Membership: | |

2. AMOUNT REQUESTED. (Please consider how the additional funds and associated costs will affect your assets and liability management. Terms range from 5-10 years). In order to determine which secondary capital product is right for your credit union, please see attached Secondary Capital Products Guide.

Secondary Capital Requested From Federation

| |

Total Secondary Capital Included in Business Plan

|Source(s) |Amount |Term |Status |

| | | |(Pre-Application/ Pending/ Confirmed) |

| | | | |

3. PURPOSE OF LOAN AND GROWTH STRATEGY. (No preferences are given to any community development loan purpose. Please check all that apply.)

☐ Sustain Continued Growth (Increase Volume of Financial Products or Financial Services)

☐ Market Expansion (Geographic and/ or Underserved Communities)

☐ Provide New Financial Products, New Financial Services, and/or New Development Services.

☐ Other. Please describe below:

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| |

| |

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4. COMPREHENSIVE BUSINESS AND COMMUNITY DEVELOPMENT IMPACT PLAN.

The Federation’s Secondary Capital Initiative serves to strengthen the financial growth and community impact of credit union led financial inclusion initiatives. As such, your business plan must include community development impact objectives, and state what community needs and challenges your credit union is seeking to address, as well as financial projections that cover the full loan term.

Please attach a copy of your business and community development impact plan, and financial projections. Please make sure the plan includes responses to the guiding questions included in the Federation’s Business and Community Development Impact Outline.

4. PRODUCTS, SERVICES, AND COMMUNITY IMPACT.

Community development credit unions (CDCUs) are social enterprises that measure success in terms of the double bottom line: financial and community impact. Measuring impact of secondary capital applicants and investees are based on their lending activity within target markets along with other impacts.

Please provide information on your credit union’s financial products and impact.

| |If you are a CDFI certified credit union, please attached a copy of your most recent CDFI Fund Annual Certification Report. |

| |Please check here if you received CDFI Fund Annual Certification assistance from the Federation. We will use this information as part of your |

| |application. |

| |If you are not a CDFI certified credit union, please check this box and answer the questions below. |

Please note Federation secondary capital investees are required to provide loan data which will be used to provide complimentary analysis by the Federation that may be used in completing the annual CDFI certification report.

| |

|This portion of Section Four is only applicable to non-CDFI credit unions. |

Please check one:

The information provided below is based on ☐ estimated figures ☐ actual Figures

|Member Overview. |

|Indicator |Community |Members |Loan Portfolio |

| |(Choose one: MSA/ County/ State) |% |% |

| |% | | |

|Poverty [1] | | | |

|Very Low Income | | | |

|(Less than 60% of Median Family Income for| | | |

|MSA)[2] | | | |

|Low Income | | | |

|(Less than 80% of Median Family Income for| | | |

|MSA) | | | |

|Moderate Income | | | |

|(80%-100% Median Family Income for MSA) | | | |

|Non-Prime Credit | | | |

|(Credit Score Less than 650) | | | |

|Unemployment | | | |

|Other Demographic Information |

| |Community |Members |

| |(Choose one: MSA/ County/ State) |% |

| |% | |

|Caucasian | | |

|African-American | | |

|Hispanic | | |

|Asian- American | | |

|Native American | | |

|Native Hawaiian/Other Pacific Islander | | |

|Alaska Native | | |

|Other | | |

Community Development Products and Development Services and Impacts

|Product/ Service |Offered (Y/ N) |#/ $ |

|Small Dollar Short Term Loan/ Alternative to Payday Loan | | |

|Wheels to Work/ Non-Prime Auto Loan | | |

|ITIN Loans | | |

|Affordable Mortgages | | |

|1st Time Homebuyer | | |

|Credit Builder Loans | | |

|Small Business/ Micro-Enterprise Loans | | |

|Non-Prime Credit Loans (Credit Score Less than 650) | | |

|Product/ Service |Offered (Y/ N) |# |

|Business Technical Assistance | | |

|Credit/ Financial Counseling | | |

|Homeownership Counseling and Technical Assistance | | |

|Second Chance Checking | | |

|Other | | |

5. REQUIRED DOCUMENTS ON CHECK LIST (see check list).

6. ADDITIONAL CONTACT INFORMATION. Please provide contact information for all of the following officers:

|CEO/ President Name: |

|Signature: |

|Phone: |Email: |

|Board President or Secretary Name: |

|Signature: |

|Phone: |Email: |

I certify that the information in this application is accurate to the best of my knowledge. By completing this application and signing below, my credit union is committing to becoming a member of the Federation and maintaining membership throughout the term of the loan if it receives and accepts and funding commitment from the Federation’s Community Development Investment Program.

________________________________

Name

________________________________ ______________

Title Date

Community Development Investment Program for CDCUs

SECONDARY CAPITAL APPLICATION- CHECK LIST

Please use the following as a checklist for required documentation for the Secondary Capital Loan application. If the following information is not provided, your application will be considered incomplete.

| | |Federation’s Secondary Capital Loan Application (this form). |

| | |Comprehensive Business and Community Development Plan and Financial Projections. |

| | |Your business plan must include community development impact objectives, and state what community needs and challenges your credit union |

| | |is seeking to address, as well as financial projections that cover the full loan term. |

| | |Please make sure your plan includes responses to the questions outlined in attached guide. |

| | |Policies: |

| | |☐ Loan Policies and Procedures. (You must have 3 or more years of lending experience to be eligible.) If you are planning to launch |

| | |new loan products, please include a copy of your plans to do so (product design, experience of lending staff, market analysis, projected |

| | |impact and anticipated loss rates etc.) |

| | |☐Delinquency and Collections |

| | |☐Allowance for Loan and Lease Losses |

| | |Most Recent Monthly Financial Report. It must include all loan and delinquency information. |

| | |Resumes of key management personnel and lending officer(s) and organization chart. |

| | |For resumes, please make sure to include: |

| | |# Years at the Credit Union |

| | |# Years of Experience |

| | |Summary of responsibilities and relationship to strategic goals |

| | |Copy of each for the last two years management letters and annual financial statements audited by an independent certified public |

| | |accountant and/ or Supervisory Committee. |

| | |Copy of your Charter (Indicating your Field-Of-Membership). |

| | |Certification of Material Events Form |

| | |Any additional material which you feel will help us to better understand your credit union and your community. This may include annual |

| | |reports, brochures, newspaper articles, etc. |

| | |Application Fee. (Secondary Capital I: $250; Secondary Capital II: $500) |

| | |Please also note that approved Secondary Capital II loans will also be subject to a closing fee. Closing fees will be 10 basis points of |

| | |the total approved secondary capital loan amount. Please forward payment of application fees to the National Federation of Community |

| | |Development Credit Unions (NFCDCU), 39 Broadway, Suite 2140, New York, NY 10006-3063. |

THANK YOU FOR YOUR COOPERATION

Please return all documentation to:

National Federation of Community Development Credit Unions

Attn.: Community Development Investment Program

39 Broadway, Suite 2140, New York, NY 10006

Tel: (800) 437-8711 | Fax: (212) 809-3274

Email: cdinvestment@cdcu.coop

If you have any questions, please contact the Community Development Investment Program at

(800) 437-8711 or (212) 809-1850

CERTIFICATION OF MATERIAL EVENTS FORM

Secondary capital applicants must disclose the status of any material events currently in progress or planned to occur during the term of the secondary capital loan. A Material Event is an occurrence that may affect a credit union’s business plan or ability to execute its strategic direction, mission, or business operations. Examples of material events are:

• Mergers / Acquisitions

• Branch Openings

• Changes in Senior Management

• Core Processor Conversions

• Field of Membership / Charter Conversions

• Litigations

Please check the appropriate box as of the date this form is signed:

( I certify that no Material Event has occurred in the applying credit union since the date of the business plan.

( A Material Event(s) has occurred in the applying credit union, or is planned to occur. I certify that the event(s) listed below constitute all of such Material Events.

Explanation of Material Event

Please provide a narrative explanation regarding the Material Event(s) affecting the organization.

|Summary of Material Event(s): |

To the best of my knowledge, all information contained in this certification statement is true and correct. My signature indicates authorization on behalf of the credit union’s Board and management.

|Authorized Representative Signature: | |

| | |

| | |

|Name: | |

| | |

| | |

|Title: | |

|Date: | |

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[1]The Federation uses the US Census’ definition of poverty. For information on the poverty rates in your community, please visit datausa.io or

[2] To find information on your MSAs (Metropolitan Statistical Areas), please visit

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