In order for a multiple common bond charter to add an undeserved area, the following five underserved area requirements must be met: 1. Community: the requested area is either a well-defined local community or a rural district. 2. Investment Area: the requested area qualifies as an “investment area” per the Community Development Financial Institution Fund, also known as CDFI Fund. 3. 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. 4. 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. 5. 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.
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