Effective Tuesday, the NCUA willaccept 2012 grant and loan applications for the Community DevelopmentRevolving Loan Fund, available to 1,110 low-incomedesignation credit unions.

The NCUA also posted a new YouTubevideo about the Community Development Revolving Loan Fundapplication process.

“This year, we are making $1.3million available for grants and $11 million for lending, said NCUABoard Chairman Debbie Matz. “To help more credit unions accessthese funds, we have created a new video that highlights how theprogram works and the new, streamlined applicationprocess.”

“All of NCUA's work to improve our grant and loan programs reflectsthe agency's strong commitment to help low-income credit unionsthrive,” said Matz, who is featured in the new video. “Low-incomecredit unions are extremely important to their communities. Theyfill a crucial role by providing needed access to financialproducts and services for individuals of modest means. These grantsand loans are designed to provide vital assistance to low-incomecredit unions so they will be available to serve their members formany years to come.”

NCUA's Office of Small CreditUnion Initiatives administers the CDRLF and thegrant application process. Grantsare available for asmuch as $25,000 with an application deadline of June 29. In 2012,credit unions will experience a streamlined CDRLF applicationprogram. Specific changes include:

• An automated, online fundingapplication;
• A single application for allfunding initiatives; and
• The ability to bundlereimbursement requests for multiple initiatives.
  

As part of the 2012 CDRLF fundinground, NCUA has prioritized grants for:

• Financial literacy and educationin school branches;
• New product and servicedevelopment;
• Staff, official, and board membertraining;
• Student and job creationinternships; and
• Volunteer Income TaxAssistance.

Previously, the CDRLF providedloans up to $300,000, but a new rule adopted by the NCUA Board lastyear now allows loans to exceed that amount on a case-by-casebasis.

The modified rule also allowsgreater flexibility in setting interest rates that can fall below1%. For 2012, NCUA has set the interest rate for loans at a recordlow of 0.4%. NCUA will accept loan applications through the rest of2012 or when funds are exhausted.

Low-income credit unions may uselow-rate CDRLF loans for projects that include expanding share draft or creditcard programs; creating partnerships with community-based serviceorganizations and government agencies; acquiring, expanding, orimproving office space or equipment; initiating or expandingmicro-business, education, and real-estate loan programs; andoffering consumer-friendly, short-term alternatives to paydayloans.

“The changes we have put in placeto ease credit unions' access to the Community DevelopmentRevolving Loan Fund build on NCUA's past success in assistinglow-income credit unions to better serve their members,” Matz said.“I encourage all eligible credit unions to apply for this importantsource of money.”

For more information about CDRLFgrants, see the recent Letter toCredit Unions or the grantapplication guidelines.