More than $1.3 Million will be Available; Applications Due by May 22
ALEXANDRIA, Va. (April 13, 2020) – Recognizing the immediate needs of credit unions and their members in the COVID-19 pandemic, the National Credit Union Administration is committing the majority of the 2020 Community Development Revolving Loan Fund appropriation for COVID-19 assistance.
“The NCUA recognizes that federally insured credit unions will face unpredictable challenges and costs as a result of the COVID-19 pandemic,” NCUA Chairman Rodney E. Hood said. “The increase in available grant funding will help more low-income credit unions to continue offering quality and affordable financial services to their members and communities. I encourage all eligible credit unions in need to consider applying for these grants as a means to ensure service to their members.”
The agency is committing $1,375,000 for grants to eligible low-income credit unions, an increase of $575,000 from the $800,000 originally announced on March 31. This funding will supplant the traditional Community Development Revolving Loan Fund grant categories. The agency will make funding available for its minority depository institutions mentoring program later this year.
Eligible credit unions have until May 22 to apply for the COVID-19 emergency response grants through the NCUA’s CyberGrants portal (opens new window). Given the anticipated need, the NCUA’s Office of Credit Union Resources and Expansion will work to review grant applications as quickly as possible.
Grant awards may be used to:
- Offer rental, mortgage, and utility payment assistance to members such as entrepreneurs, small business owners, and hospitality and service industry employees;
- Offer loan payment relief to affected members;
- Develop a new product or service for affected members, such as offering preloaded cards; or
- Cover costs associated with moving credit union operations to remote locations, such as laptops, software, and short-term rentals.
The grants, with a maximum award of $10,000, will be awarded on a rolling basis throughout the open application period. Minority depository institutions and credit unions with less than $100 million in assets will receive priority. The NCUA will make awards on a first-come, first-serve basis until the earmarked funds are fully exhausted.
Credit unions with questions should contact the Office of Credit Union Resources and Expansion by email at CUREApps@ncua.gov.