Funds Support New Products for Members, Internships and CDFI Certifications
ALEXANDRIA, Va. (March 13, 2014) – Low-income credit unions will be able to offer new products, train the next generation of credit union leadership and gain access to more resources to help their communities with grants awarded by the National Credit Union Administration.
“At NCUA, we work each day to help low-income credit unions better serve their members and communities,” said NCUA Board Chairman Debbie Matz. “The credit unions that receive these grants will be able to offer more services to members, more resources to their communities and more education for young people interested in financial services careers.”
A total of 127 low-income credit unions will receive $517,890 through the first Community Development Revolving Loan Fund grant round in 2014. NCUA’s Office of Small Credit Union Initiatives administers the funds. Congress established the Revolving Loan Fund to provide grants and loans to credit unions serving low-income communities. Since 2001, NCUA has received more than $12.8 million in grant funding.
NCUA awarded grants for three initiatives, in the amounts shown for each.
|New Product or Service
|CDFI Certification Initiative
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.
“The new CDFI initiative, which provides grants to help credit unions obtain certification, is important because certified credit unions may apply for funding from the U.S. Treasury’s Community Development Financial Institutions Fund,” OSCUI Director William Myers said. “That funding provides support to institutions like credit unions that serve low-income people and communities that lack adequate access to affordable financial products and services.”
A majority of the grants for new products are in the area of mobile services, reflecting a shift in how credit union members conduct business.
“It’s important that credit unions offer up-to-date technology to remain competitive in a rapidly changing industry,” Matz said.
Myers added that the 54 student internships funded by the grants will help high school and college students gain professional experience in financial services.
In this round, 320 credit unions submitted grant applications to NCUA with more than $2.3 million in funding requests.
Urgent Need grants for emergency assistance are available year-round, subject to fund availability. More information is available online here.
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. Credit unions may stay informed of grant news by subscribing to OSCUI’s monthly e-newsletter FOCUS, which features articles, announcements and advice for small, low-income and new credit unions.
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.