ALEXANDRIA, Va. (5/15/14)--The National Credit Union Administration will invest an additional $1.2 million in low-income credit unions through its second round of 2014 Community Development Revolving Loan Fund grants.
The agency will accept applications from June 2 through 5 p.m. (ET) June 30. Each applicant may apply in any of four grant categories, but a credit union may only receive funding in one category.
The grants are used by credit unions to improve their service by adding new products, modernizing technology, and expanding staff training. As well as to expand their community outreach efforts.
The grant categories are:
Community Development Financial Institution (CDFI) Certification. The NCUA said it 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. This is for credit unions that want to offer members new electronic services, which 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. There is a maximum award of $7,500 for each successful applicant.
Collaboration. The NCUA will award four collaboration grants of up to $50,000 each for a total of $200,000. The grants may be used to establish collaborative relationships for cost-saving projects such as back-office operations, vendor due diligence, and secondary capital investment pools. A minimum of three credit unions must apply for a single collaboration grant, with the lead credit union having its low-income designation. Collaborations may include leagues, credit union service organization 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.
In announcing the new round of grants, NCUA Chairman Debbie Matz said, "Because NCUA's grants to low-income credit unions can improve service and support local economies, I encourage all qualified credit unions to apply."
Funding for NCUA's grant initiatives is provided by the Community Development Revolving Loan Fund, a fund created by the U.S. Congress to support credit unions that serve low-income communities. NCUA's Office of Small Credit Union Initiatives administers the fund.
Use the resource link for more information or to apply online.