In 2019, Prime Financial Credit Union received its designation as a certified Community Development Financial Institution (CDFI). This certification is issued by the U.S. Department of the Treasury Certified Development Financial Institution Fund to credit unions, banks, loan funds, microloan funds, and venture capital providers. CDFI certified institutions have a primary mission of promoting community development by providing affordable financial and educational resources in the communities they serve.
History of the CDFI Fund
Beginning in the 1880s when the first minority-owned banks focused on low-income areas, community organizations have developed to provide needed financial services. From the creation of credit unions in the 1930s and 1940s and community development corporations beginning in the 1960s and 1970s, to the more recent emergence of nonprofit loan funds in the 1980s, the predecessors to CDFIs sought to better the conditions in these economically underserved markets.
To support the emerging community development financial institutions, the Community Development Financial Institutions Fund, or CDFI Fund, was established by the Riegle Community Development and Regulatory Improvement Act of 1994. The CDFI Fund’s purpose is to promote economic revitalization and community development in lowincome communities through investment in and assistance to CDFIs.