Q: We want to take advantage of this new option. What exactly do we need to submit? Is there a form or list of letter requirements on your website?
A: In order for a multiple common bond charter to add an underserved area, the following five underserved area requirements must be met:
- Community: the requested area is either a well-defined loan community or a rural district.
Investment Area: the requested area qualifies as an “investment area” per the Community Development Financial Institution Fund, also known as CDFI Fund.
Other Depository Institutions: The requested area has to meet one of the below:
Concentration of Facilities Ratio (or Depository Institution Test) is met, or
Falls within a CFPB “underserved county,” or
Alternative method supports the requested area is underserved by other financial institutions and the analysis relies on NCUA or another federal banking agency’s data.
Service Facility: a service facility must either be located within the requested area, or the credit union’s business plans outline a service facility will be established within two years of the underserved area being approved.A service facility for an underserved area is defined as a place where shares are accepted for members’ accounts, loans applications are accepted and loans are disbursed.
Significant Unmet Needs Analysis: a one-page narrative indicating a pattern of unmet needs in the proposed area for loans or one or more credit union services.
Also, a complete two-year business and marketing plan with financial projections needs to be submitted. You can email DCAmail@ncua.gov
or call 703-518-1150 if you have questions on this process.