The NCUA announced that low-income designated credit union could begin applying last week for grants and low-rate loans. The NCUA also posted a new YouTube video about the Community Development Revolving Loan Fund application process.
“This year, we are making $1.3 million available for grants and $11 million for lending. To help more credit unions access these funds, we have created a new video that highlights how the program works and the new, streamlined application process,” said NCUA Chairman Debbie Matz.
“All of NCUA’s work to improve our grant and loan programs reflects the agency’s strong commitment to help low-income credit unions thrive,” she added. “Low-income credit unions are extremely important to their communities. They fill a crucial role by providing needed access to financial products and services for individuals of modest means. These grants and loans are designed to provide vital assistance to low-income credit unions."
The NCUA’s Office of Small Credit Union Initiatives administers the CDRLF and the grant application process. Grants go up to $25,000 with an application deadline of June 29. In 2012, credit unions will experience a streamlined CDRLF application program. Specific changes include an automated, online funding application; a single application for all funding initiatives; and the ability to bundle reimbursement requests for multiple initiatives.
As part of the 2012 CDRLF funding round, the NCUA prioritized grants for financial literacy and education in school branches; new product and service development; staff, official, and board member training; student and job creation internships; and volunteer income tax assistance.
Previously, CDRLF provided loans up to $300,000, but a new rule adopted by the NCUA board last year now allows loans to exceed that amount.
The NCUA will accept loan applications through the rest of 2012 or when funds are exhausted.The new CDRLF video is available for viewing on NCUA’s official YouTube channel. For more information about CDRLF grants, see the recent letter to credit unions at www.ncua.gov/resources.