Low-income credit unions will be able to submit grant applications for the National Credit Union Administration’s Community Development Revolving Loan Fund between May 3 and June 26, the agency announced last week.
“These grants make a tremendous difference to small, low-income and minority credit unions working to provide more and better services to their members and communities or seeking to bolster their own capacity,” NCUA Board Chairman Todd Harper said.
To be eligible, a credit union must be designated as a low-income institution. The agency will have about $1.5 million for CDRLF grants.
Grants will be awarded in three areas. Grants for outreach in underserved areas will be awarded, with a maximum grant of $50,000. Minority Depository Institution Mentoring grants will be awarded, with a maximum grant of $25,000 and Digital Services and Cybersecurity grants will be awarded, with a maximum grant of $7,000.
Last year’s round of CDRLF grants focused on institutions needing assistance as a result of the coronavirus crisis. Harper said many low-income institutions still are feeling the effects of the pandemic.
“As these credit unions and their members continue to disproportionately face the challenges of the COVID-19 pandemic, this funding is very important.,” he said.
Most of the NCUA’s programs are not subject to the annual appropriations process, but the CDRLF’s funding levels are set by Congress. The program received $1.5 million for FY21. Congress has not yet started the annual appropriations process, so no decisions about FY22 funding have been made.