ALEXANDRIA, Va. (Aug. 5, 2015) – Grants totaling more than $2 million will help 225 low-income credit unions expand products and services, open branches or relocate offices, advance digital growth and provide greater security for their members, the National Credit Union Administration announced today.
“The second grant round of 2015 proved to be the largest in NCUA’s history, with requests for more than $9.4 million coming from 580 low-income credit unions,” NCUA Board Chairman Debbie Matz said. “While the competition was tough, the current and future members of the low-income credit unions receiving these funds are the real winners in terms of new products and services, new locations and new protections.”
NCUA awarded grants for four initiatives, in the amounts shown for each:
- Digital Growth. NCUA awarded 82 grants totaling $735,778 for the development of digital products, such as electronic bill payment, an interactive website, mobile or home banking, electronic or digital signatures, mobile or online loan applications and remote deposit capture.
- Fraud Prevention and Cybersecurity Protection. NCUA awarded 103 grants totaling of $732,818 to assist in fraud prevention and cybersecurity efforts, like training, converting debit or credit cards to EMV technology, or obtaining a system’s test or risk assessment.
- Building Capacity and Growth. NCUA awarded 14 grants totaling $299,950 to allow credit unions to open new branches in underserved areas or relocate from a home-based to a non-residential location.
- New Product and Service Development. NCUA awarded 26 grants totaling $239,400 to permit credit unions to offer a new product or service, such as a member business lending program, installation of a new ATM or an asset-liability management model.
A list of grantees is available online here. Due to the high demand, NCUA awarded only one grant per credit union.
“We were pleased and impressed at the response from so many credit unions,” Office of Small Credit Union Initiatives Director William Myers said. “There’s a great sense of satisfaction that comes from making the kinds of investments that help low-income credit unions to thrive in a challenging financial and economic environment.”
NCUA’s Office of Small Credit Union Initiatives administers the Community Development Revolving Loan Fund, which provides grants and loans to credit unions serving low-income communities. Since 2001, NCUA has received more than $14.8 million from Congress for grants to low-income credit unions.
NCUA has sent grant notifications by email, and a credit union may check its CyberGrants login for its application status. Credit unions that did not receive a grant in 2014 and those with higher CAMEL composite or CAMEL management ratings received priority for funding. NCUA also evaluated a credit union’s service to its membership in making funding decisions.
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, minority depository institutions and credit unions with a low-income designation. Credit unions may stay informed of grant news by subscribing to FOCUS, the office’s monthly e-newsletter.
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 account holders in all federal credit unions and the overwhelming majority of
state-chartered credit unions. At MyCreditUnion.gov, NCUA also educates the public on consumer protection and financial literacy issues.