Saying that the number of applications regularly exceeds the funding available, National Credit Union Administration Chairman Todd Harper Tuesday urged Congress to increase appropriations for the agency’s Community Development Revolving Loan Fund program.
“With more funding, the agency could increase the number of credit unions receiving grants and increase the size of the grants it makes, deepening the program’s impact in underserved communities,” Harper said, as he released the program’s annual report to Congress.
Last week the Biden Administration released its FY22 budget plan that would increase the CDRLF program funding by $500,000, to $2 million. The revolving loan fund is the only NCUA program subject to the annual appropriations process. The rest of the agency’s activities are funded by fees charged to credit unions.
In the annual report, the NCUA said that in 2020 it devoted almost all its CDRLF funding to help credit unions and their members deal with the challenges posed by the coronavirus crisis.
The agency received 432 technical assistance grant and loan requests, totaling $7.6 million. The agency’s funding capacity allowed it to only award $3.7 million in technical assistance grants and loans to 165 credit unions. In addition, the NCUA awarded 149 credit unions in 42 states and the District of Columbia with more than $968,000 in urgent need grants. On average during the past five years, the NCUA has awarded about half of requested grant amounts to about 60% of the credit unions requesting money.