Low-income credit unions can apply for part of $1.18 million in grant money from the NCUA's Community Development Loan Fund starting on June 17, the agency announced on Tuesday.
“These grants provide critical assistance to low-income designated credit unions so they can better meet the evolving financial needs of their members,” said NCUA Board Chairman Debbie Matz. “We encourage all eligible credit unions to apply.”
The grants will top out at $24,000 this year, $1000.00 less than last year's $25,000 limit and the agency has also capped loans for different categories.
For example, a grant to develop “a long-term cost-saving collaboration or partnership that is scalable and replicable” can bring as much as $24,000 but a grant to train staff and volunteers can bring at most $3,000.
The categories and their maximum loan amounts are collaboration, $24,000; new product or service development, $15,000; financial capability (including financial literacy), $10,000; relocation (to relocate a “home-based” credit union to retail site); $10,000; computer modernization, $7,500; staff or volunteer training, $3,000.
Last year the agency distributed $1.25 million to 103 LICUs and this year's lower amount reflects the fund's lower appropriation, an NCUA spokesman explained.