Applications for Four Categories Accepted June 2 to June 30
ALEXANDRIA, Va. (May 14, 2014) –The National Credit Union Administration will make $1.2 million available to low-income credit unions in the second round of Community Development Revolving Loan Fund grants for 2014, the agency announced today.
“NCUA’s grants to low-income credit unions are wise investments in community development,” NCUA Board Chairman Debbie Matz said. “These grants have seeded a range of activities, from new products to technology modernization and staff training. Because NCUA’s grants to low-income credit unions can improve service and support local economies, I encourage all qualified credit unions to apply.”
NCUA will accept applications from June 2 through June 30 at 5 p.m. Eastern. Credit unions can find more information or apply online here. Each applicant may apply in any of the four grant categories, but the credit union may only receive funding in one category:
- Community Development Financial Institution Certification—NCUA anticipates awarding 60 credit unions $2,500 each to cover the cost of applying for CDFI certification. This certification makes a credit union eligible for funding to help service low-income members and communities that lack adequate access to affordable financial services products.
- New Product and Service Development—Credit unions that want to offer members new electronic services will be eligible for grants up to a preset amount based on the individual product. These services include first-time websites, home banking, mobile banking, bill pay, remote deposit capture, online loan and member applications, electronic or digital signatures, and debit, credit or prepaid cards. Total allocation is $652,000, with a maximum award of $7,500 for each successful applicant.
- Collaboration—NCUA will award four collaboration grants of up to $50,000 each for a total of $200,000. Credit unions may use these grants to establish collaborative relationships for cost-saving projects like back-office operations, vendor due diligence and secondary capital investment pools. A minimum of three credit unions must apply, with the lead credit union having its low-income designation. Collaborations may include leagues, CUSOs or vendors.
- Training—Grants of up to $3,000 each will be available to pay for training in compliance, collections and lending, and governance. The total allocation for training grants is $198,000.
Funding for NCUA’s grant initiatives is provided by the Community Development Revolving Loan Fund, a fund created by Congress to support credit unions that serve low-income communities. NCUA’s Office of Small Credit Union Initiatives administers the fund.
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. For additional information on NCUA’s grants for low-income credit unions visit the Office of Small Credit Union Initiatives’ microsite here or subscribe to the office’s monthly e-newsletter FOCUS.
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