The NCUA said it will make $9.5 million in low-interest loansfrom the Community Development Revolving Loan Fund available tolow-income credit unions this year.

“Low-income credit unions are extremely important to theircommunities. They fill a crucial role by providing needed access tofinancial products and services for individuals of modest means,”NCUA Board Chairman Debbie Matz said.

“To help these credit unions to thrive and better serve theirmembers, we've worked hard in recent years to make the loansoffered through the Revolving Loan Fund more competitive and easierto obtain. I encourage eligible credit unions to apply for the $9.5million now available at very low interest rates,” Matz said Fridayin a statement.

Operated by NCUA's Office of Small Credit Union Initiatives, theRevolving Loan Fund assists low-income credit unions inproviding financial services to their low-income members tostimulate economic activities in their communities.

Generally, the NCUA makes five-year loans up to $300,000, butthe loan may exceed this amount on a case-by-case basis. For 2013,NCUA has maintained a record-low, loan interest rate of 0.4% forthe second year in a row.

“Congress created the Revolving Loan Fund to support creditunions that serve low-income communities, and I encourage eligiblecredit unions to apply for loans this year,” OSCUI Director WilliamMyers said. “The loans are quite affordable and can be used for abroad array of purposes. For example, credit unions can use thesefunds to improve member services and have a greater impact in theircommunities.”

Eligible credit unions have used loans under this program forseveral purposes, including funding loan demand, providingliquidity for expansion and increasing net income through earningson the loan funds.

To obtain a loan, a federally insured credit union must have thelow-income designation. Loans will be made on a rolling basis. Anonline loan application and other information are available on theNCUA's website.