Agency program awards more than $1.5 million to low-income designated credit unions.
The NCUA on Thursday announced that 90 low-income credit unions have been awarded more than $1.5 million in Community Development Revolving Loan Fund grants for the FY22 award cycle.
The grants ranged from $1,400 to $50,000 to credit unions in 43 states and the District of Columbia. Agency officials said that 28 of the credit unions were first-time grant recipients, while 16 were minority depository institutions.
The NCUA received 220 grant applications requesting more than $4.7 million for the FY22 round.
“Low-income credit unions are on the frontlines of expanding access to safe, fair, and affordable credit, and these grants to credit unions will allow those institutions to expand services, build capacity, create professional support networks, and bolster their capacity to withstand cyberattacks,” NCUA Chairman Todd Harper said.
Outlook for the Program
Harper added that he is pleased Congress is considering proposals to increase funding for the CDRLF program, saying, “With more money, the NCUA will be able to make more grants and bigger grants through the Revolving Loan Fund.”
The Biden Administration has proposed providing $4 million for the program in FY23—a figure that the House included in the Financial Services appropriations bill it has passed.
Democrats on the Senate Appropriations Committee have proposed providing the program with $3 million for the program in FY23. The Senate has not yet passed its annual spending measures.
Inside the Awards
Overall, the NCUA awarded:
–21 grants totaling $943,488 as part of its underserved outreach initiative, which is designed to help credit unions implement innovative strategies to increase access to financial services in underserved communities.
–Three grants totaling $75,000 for its small low-income credit union mentoring program, an initiative designed to encourage strong and experienced credit unions to provide guidance to small low-income designated credit unions.
–52 grants totaling $484,165 for its digital services and cybersecurity initiative. That program provides grants for credit unions to better protect themselves against cyber-attacks, to increase the access of low-income and underserved communities to safe and secure digital financial services, and to acquire software that supports a remote work posture or delivers products and services to members without physical access to a credit union facility.
–14 grants totaling $64,500 for the NCUA’s training initiatives that focus on helping credit unions develop the skills and talents of employees through specialized management programs and advanced training courses.
How Your Credit Union Can Access the CDRLF Program
To be eligible for the program a credit union must have a low-income designation, which is conferred by the NCUA upon institutions serving predominantly low-income members.
To learn more about the CDRLF program, as well as how your credit union can qualify, schedule an opportunity assessment with CUCollaborate today!