Low-Income Credit Unions Have until June 29 to Apply for $1.3 Million in Funds
ALEXANDRIA, Va. (June 26, 2012) – The National Credit Union Administration (NCUA) reminded credit unions today about the 2012 application process for Community Development Revolving Loan Fund (CDRLF) technical assistance grants and reduced-rate loans. Low-income designated credit unions have until Friday, June 29, at 5 p.m. (EST) to apply for CDRLF grants of up to $25,000.
“The 2012 CDRLF funding round is the first using our new automated online application process,” said NCUA Board Chairman Debbie Matz. “I encourage all interested credit unions to apply expeditiously before this Friday’s deadline. We have worked very hard to make it much easier to accesses this free funding.”
NCUA has made $1.3 million available for CDRLF grants in 2012. As part of the 2012 CDRLF funding round, NCUA has prioritized grants for:
Financial literacy and education in school branches;
New product and service development;
Staff, official, and board member training;
Student and job creation internships; and
Volunteer Income Tax Assistance.
NCUA’s Office of Small Credit Union Initiatives (OSCUI) administers the CDRLF, and OSCUI has produced a video posted on NCUA’s YouTube channel at http://tinyurl.com/6tpn344
to help any credit union learn about the CDRLF grant program. Additional resources include NCUA’s Letter to Credit Unions available at http://go.usa.gov/v69
or the grant application guidelines available at http://go.usa.gov/v6X
“There is still time on the clock for any credit union that may have an interest in applying, but may have not yet gotten around to it,” added NCUA’s OSCUI Director William Myers. “For these credit unions or for any credit union unfamiliar with the program, check out our video. There is really nothing to lose and maybe $25,000 to gain.”
While the 2012 CDRLF grant round will close June 29, NCUA will accept CDRLF loan applications from low-income credit unions through the rest of the year or until funds are exhausted. NCUA has made $11 million available for CDRLF loans in 2012. Credit unions may obtain CDRLF loans up to $300,000, but a new rule adopted by the NCUA Board last year allows higher loans on a case-by-case basis. For 2012, NCUA has set the interest rate at a record low of 0.4 percent.
NCUA is the independent federal agency created by
the U.S. Congress to regulate, charter and supervise
federal credit unions. With the backing of the full
faith and credit of the United States, NCUA operates
and manages the National Credit Union Share
Insurance Fund, insuring the deposits of more than 101
million account holders in all federal credit
unions and the overwhelming majority of
state-chartered credit unions. At
Pocket Cents, NCUA also educates the public on consumer protection and financial literacy issues.