The National Credit Union Administration has announced that it has extended the benefits of the Community Development Revolving Loan Fund (CDRLF) for low-income-designated credit unions.
The CDRLF, which is managed by the NCUA’s Office of Credit Union Resources and Expansion (CURE), provides grant funds to eligible credit unions that apply for categories including underserved outreach, consumer financial protection, training, and others. However, these grants require applications be submitted during a designated period.
However, the NCUA makes three grants available year-round, including to cover operation costs of newly chartered credit unions, for urgent needs relating to natural disaster relief, and for other emergency events.
Where the main grant program awards grant funds of up to $100,000 depending on the category, the benefits for these year-round grants had been limited to $7,500. In the announcement made February 13, the NCUA announced that it has increased the maximum award amount to $15,000.
The natural disaster relief initiative is designed to provide funds to low-income credit unions dealing with the fallout of natural disasters, covering costs not covered by insurance. The funds can also be used to replace damaged equipment needed to restore services to members, paying consulting fees related to recovery, and even to assist members affected by the disaster.
For credit unions that have operated for no more than 10 years and that have $10 million or less in total assets, they are eligible for the newly chartered initiative. Eligible credit unions that are approved for a 12-month grant period will be awarded up to $15,000 to assist in the growth and expansion of the credit union. Applicable uses of funds include paying for hardware, software, or equipment to implement services and products; training staff on the implementation of financial products and services; consulting services related to developing strategic plans; and construction-related costs of the operating facility.
NCUA Chairman Kyle Hauptman said of the program expansion, “Expanding grants to low-income designated credit unions is a lifeline that can help them find stable ground and be able to grow for the future. These credit unions are often the first and only line of financial support for families, small businesses, and the surrounding community and when they struggle, so do the people who depend on them. Targeted grant funding strengthens the capacity of credit unions at critical moments to ensure stability, innovation long term economic resilience.”
For complete guidelines, check out the “Newly Chartered and Urgent Need Grant Guidelines” document on the NCUA website.
