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National Credit Union Administration
1775 Duke Street
Alexandria, VA 22314-3428
Phone: (703) 518-6330
Web Address: http://www.ncua.gov/


NCUA News Release

FOR IMMEDIATE RELEASE

NCUA Announces 2006 CDRLF
Loan and Grant Program

Alexandria, VA, February 23, 2006- National Credit Union Administration (NCUA) Chairman JoAnn Johnson today announced the 2006 Community Development Revolving Loan Fund Technical Assistance Grant Program.

The NCUA’s Community Development Revolving Loan Fund (CDRLF) was established by Congress to support credit unions that serve low-income communities by providing loans and technical assistance grants (TAGs) to qualifying institutions.  The programs are designed to further the safety and soundness of low income credit unions while stimulating economic growth.

For 2006, the CDRLF received a $950,000 appropriation for technical assistance grants from Congress.  “I commend Congress for acknowledging credit union’s important mission of helping hard working people across America achieve their financial dreams.” Said Chairman Johnson.  “I am confident that the CDRLF grant initiatives will contribute to the safety and soundness of low income credit unions and will stimulate economic growth.  I encourage qualifying credit unions to explore the CDRLF program as another way to serve as a reliable financial partner to their members.”

The agency announces the following five grant initiatives for 2006: 

  • Student Internship Initiative-Provides low-income credit unions an opportunity to introduce college students to credit union operations, in order to potentially recruit and develop the next generation of credit union managers;
  • Volunteer Income Tax Assistance (VITA) Initiative-Provides financial assistance to credit unions wishing to help existing and potential members prepare their tax returns, especially those eligible for the Earned Income Tax Credit;
  • Staff, Official, and Board Member Training Initiative- Provides funds for training staff, officers, and board members of credit unions in order to equip credit union representatives with knowledge and skills that will help improve service to members.
  • Outreach and Partnering Initiative- Provides funds that will extend services to potential members and the community for various projects including: financial education; homeownership opportunities; marketing and outreach programs; share draft, debit and credit card services; creating and enhancing an Individual Development Account program; and establishing an International Remittance Network.
  • Building Internal Capacity Initiative- Provides funds that improve the overall operations or financial condition of the credit union, and ultimately enable the credit union to better deliver services to its members for various projects including: enhancing technologies, facilities, and office efficiency; developing business and emergency preparation strategies; and addressing items of supervisory concern.

In addition NCUA has set aside limited funds for the Urgent Needs Grant, to be used by eligible credit unions in cases of extreme necessity.

The table below summarizes the available grants and the respective application periods for 2006.

Grant Initiative

Application
Acceptance Period

Total Grant Funds

Maximum Grant Amount

Grant Approval Procedure

 

 

 

 

 

Student Internship Initiative

Opens March 10, 2006. Closes when funds are exhausted.

$55,000

$2,500

Rolling. Applications evaluated as received.

Volunteer Income Tax Assistance Initiative

Opens July 7, 2006. Closes November 3, 2006 or when funds are exhausted.

$75,000

$6,000

Rolling. Applications evaluated as received.

Staff, Official, and Board Member Training Initiative

Opens March 3, 2006. Closes January 31, 2007. 

$120,000

$1,500/$3,000

Applications evaluated as received. Credit unions are limited to $1,500 semi-annually or a maximum of $3,000 for the year.

Outreach and Partnering Initiative

Opens May 5, 2006. Closes July 7, 2006.

$400,000

$10,000

All grants evaluated at end of open period. Applications with best meet evaluation criteria will be awarded.

Building Internal Capacity  Initiative
(1st Round)

Opens April 14, 2006. Closes May 19, 2006.

$150,000

$3,500

All grants evaluated at end of open period. Grant applications which best meet evaluation criteria will be awarded.

Building Internal Capacity  Initiative
(2nd Round)

Opens September 15, 2006. Closes October 20, 2006.

$150,000

$3,500

All grants evaluated at end of open period. Grant applications which best meet evaluation criteria will be awarded.

Urgent Needs Grant

Year-round

Funded from CDRLF Earnings

$3,000

Rolling. Applications evaluated as received.

NCUA’s technical assistance grants are reimbursable grants.  In order to be reimbursed, credit unions applying for grants must receive approval of the proposed expenditures before making the expenditures.

Credit union’s wishing to participate in the CDRLF’s programs must be designated as a “low-income” credit union as set forth in NCUA’s Rules and Regulations 701.34.  A state chartered credit union must have the equivalent low-income designation from its respective state supervisory authority and concurrence from NCUA. 

Your local NCUA Regional Office and the Office of Small Credit Union Initiatives can provide additional information regarding the Community Development Revolving Loan Fund programs and how credit unions may qualify for a low-income designation and participate in these special programs. For additional information regarding the TAG grants, please visit the NCUA website at: www.ncua.gov/CreditUnionDevelopment/Index.htm.

 

The National Credit Union Administration charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, operates and manages the National Credit Union Share Insurance Fund, insuring the accounts of more than 84.5 million account holders in all federal credit unions and the majority of state-chartered credit unions.