NCUA Will Award $50,000 to Winning Low-Income Designated Credit Union
ALEXANDRIA, Va. (Jan. 11, 2013) – The National Credit Union Administration (NCUA) announced today that it will award a low-income designated credit union with $50,000 in grant funding for a proposal that results in long-term savings to a credit union through collaboration.
“Pursuing collaborations and developing new and innovative best practices can assist small credit unions competing in today’s marketplace and add value to their membership,” NCUA Chairman Debbie Matz said. “This grant initiative will allow low-income credit unions to tap into their wealth of experience and create solutions to apply across the industry. In my experience, some of the best solutions come directly from members or employees.”
To qualify, a single low-income designated credit union must partner with at least one other credit union, with the option to include other entities such as state leagues and associations, additional credit unions, credit union service organizations and third-party vendors. NCUA’s Office of Small Credit Union Initiatives (OSCUI) will accept applications from Feb. 15, 2013, to March 15, 2013. NCUA will announce the winning proposal no later than April 12, 2013.
OSCUI will evaluate applications based on the following characteristics:
Substantial reduction of expenses for core credit union activity through collaboration
Scalable collaborations that continue to grow
Innovative collaborations that break new ground
Replicable ideas or projects that other credit unions can adopt
Likelihood of success based on:
NCUA CAMEL ratings and net worth ratios of involved credit unions
Financial viability of partners
Amount of total project cost funded by non-NCUA funds
Successful implementation of prior projects
For more information, a set of guidelines detailing the grant program’s requirements and selection process, as well as potential collaboration ideas, is available under the grants button at http://go.usa.gov/gwP9
. A Notice of Funding Opportunity also appears in today’s Federal Register at http://go.usa.gov/4arB
Funding for this grant is provided by the Community Development Revolving Loan Fund, which Congress created to support credit unions that serve low-income communities. NCUA’s OSCUI administers these funds under its grant and loan programs.
NCUA’s OSCUI fosters credit union development and the effective delivery of financial services for small credit unions, new credit unions and credit unions with a low-income designation.
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 nearly 100
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.