Board Chairman Todd Harper has asked for $4 million for the 2023 financial year for the NCUA’s Community Development Revolving Loan Fund program. Learn how your credit union could benefit.
Stating that the National Credit Union Administration (NCUA) each year receives grant requests that exceed available resources, board Chairman Todd Harper is requesting that Congress provide $4 million in FY23 for the Agency’s Community Development Revolving Loan Fund (CDRLF) program.
“With additional resources, the NCUA could provide broader and deeper support for credit unions’ efforts to modernize services, build capacity, and expand their reach to underserved people and communities,” Harper wrote, in the annual CDRLF report to Congress. “We would offer more grants, larger grants, and find more ways to assist these credit unions in fulfilling their missions.”
NCUA board Chairman Todd Harper
The Biden Administration has requested that Congress provide $4 million for the program next year. During the current fiscal year, Congress provided $1.5 million for the program.
The NCUA received 283 grant applications totaling $4.7 million this year, with Harper emphasizing no appropriated funds are used in managing the program.
Which Credit Unions Can Apply for the CDRLF Program?
To be eligible, a federal credit union must be designated as a low-income credit union. A state-chartered credit union must have the equivalent designation from its state supervisory agency and the concurrence of the NCUA.
What are the Benefits for Credit Unions?
The CDRLF program helps credit unions in three specific ways:
–The Agency awards technical assistant grants in one or two rounds to support initiatives identified by its board.
Last year, those initiatives were digital services and cybersecurity, underserved outreach, and minority depository institutions. By combining funds that had been recovered and last year’s appropriation, the NCUA provided technical assistance grants totaling $1.6 million to 109 credit unions.
–The Agency also provides low-interest loans, which are available year-round.
The NCUA last year provided one loan for $500,000 to help a credit union develop new products, expand a loan program, establish community partnerships, and improve cybersecurity.
–Finally, the Agency provides urgent need grants to help credit unions that experience sudden and unexpected losses curtailing services.
In 2021, ten urgent need grants of $7,500 each were provided to credit unions in four states, with the institutions using the funds to respond to natural disasters, such as Hurricane Ida.
How Your Credit Union Can Access the CDRLF Program
In order to be eligible for the program a credit union must have first attained a low-income designation, a distinction 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, visit CUCollaborate's low-income designation consulting services page and contact us today!