Funds Used to Invest in Communities, Improve Services and Provide Training
ALEXANDRIA, Va. (Aug. 28, 2013) – More low-income credit unions will be able to expand services, offer new loan products and provide educational opportunities to members as a result of grants awarded by the National Credit Union Administration, the agency announced today.
“Low-income credit unions play an essential role in their communities and supporting their work is a priority for NCUA,” said NCUA Board Chairman Debbie Matz. “The credit unions that receive these grants will be extending outreach, growing membership and improving income.”
A total of 126 low-income credit unions will receive $871,597 in funding through the 2013 Community Development Revolving Loan Fund grant round. William Myers, Director of the Office of Small Credit Union Initiatives (OSCUI), which administers the funds, said the grants reinforce success at the community level.
“We’re supporting the kind of innovation that has a direct and positive result on people’s lives,” Myers said. “We’re especially proud of their efforts in collaboration and extending digital services.”
Low-income credit unions are often the only insured financial services available to their members, and grants from NCUA’s Revolving Loan Fund help these institutions to expand services and provide the capital that is the lifeblood of local economies.
Congress established the Revolving Loan Fund to provide grants and loans to credit unions serving low-income communities and has appropriated $10.4 million for the fund’s grants since 2001.
Low-income credit unions will use this year’s awards for a variety of purposes, including setting up electronic banking systems and mobile banking platforms, offering reloadable debit cards and lower-cost alternatives to payday loans, and providing financial literacy for consumers and online training for staff.
This year, 231 credit unions submitted grant applications to NCUA with more than $2,718,965 in funding requests.
NCUA awarded 142 grants for the following four initiatives, in the amounts shown for each. In some instances, one credit union received two grants awarded under different initiatives.
|New Product or Service
A list of grantees is available online here. Credit unions have been sent notification by email and may check their CyberGrants login for their application status.
Urgent Need grants for emergency assistance are available year round, subject to fund availability. For more information please click here.
The next Revolving Loan Fund grant round is anticipated in the early part of 2014 for Student Internship and Collaboration initiatives.
Credit unions may stay informed of grant news period by subscribing to OSCUI’s monthly e-newsletter FOCUS, which features articles, announcements and advice for small, low-income, and new credit unions.
NCUA’s Office of Small Credit Union Initiatives 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 more than
99 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.