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The NCUA has filed a request with the Office of Management and Budget (OMB) to renew its Proof of Concept for New Charter Organizing Groups information collection, a key step in its ongoing charter modernization initiative.
The process, administered by the NCUA’s Office of Credit Union Resources and Expansion (CURE), helps evaluate the readiness of organizing groups before they submit formal charter applications. By requiring a “proof of concept” phase, the agency aims to improve application quality, reduce unnecessary back-and-forth with applicants and shorten overall processing times.
The NCUA estimated that 53 organizing groups will submit Proof of Concept requests in the coming year, an increase from prior expectations, with each submission requiring about four hours of preparation. The annual burden is projected at 212 hours across all respondents, primarily private-sector, not-for-profit institutions.
For credit unions considering new charters, this renewal signals the agency’s continued focus on streamlining the process and offering early guidance to potential entrants. The proof-of-concept stage can help new groups identify gaps in their business plans, governance structures and capital strategies before investing time and resources into a full application.
The NCUA is seeking public comment on the necessity, clarity and burden of the information collection, as well as suggestions for using technology to ease compliance. Comments are due within 30 days of the notice’s publication in the Federal Register.
If approved, the program will continue to serve as a critical gateway for expanding credit union access in underserved communities.
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