WASHINGTON (7/27/11)--The Credit Union National Association (CUNA) supports efforts to improve the process for “low-income” credit unions to apply for loans and technical assistance grants from the Community Development Revolving Loan Fund (CDRLF) and offered suggestions to streamline the process of applying for loans and grants. In a comment letter sent Monday, CUNA’s urged the National Credit Union Administration (NCUA) to minimize reporting and monitoring burdens on “low-income” credit unions seeking CDRLF assistance by using existing reports whenever possible. The CUNA letter said the NCUA’s proposed rule change aimed at reorganizing CDRLF regulations should also provide greater flexibility in terms and conditions. Recommended changes include:
* A non-exhaustive list of permissible loan fund uses, such as developing new products or community partnerships; * An increase in the maximum loan limit, currently set at $300,000; * A reference to the CDRLF Interest Rate Policy and a specific interest rate on the notice of funding; and, * Removal of the current requirement for matching funds.
CUNA expressed concern that requiring financial projections would increase the cost of seeking CDRLF assistance. But CUNA offered support for the removal of the current requirement for a Community Needs Plan, which would be replaced by a narrative on the intended uses of funds.