ALEXANDRIA, Va. (1/24/13)--The National Credit Union Administration expects to make up to $9.5 million in funds available in the 2013-2014 round of the Community Development Revolving Loan Fund (CDRLF) Loan Program, the agency said on Wednesday.
The NCUA's Office of Small Credit Union Initiatives (OSCUI) administers the CDRLF. Congress has not made an appropriation to the OSCUI Loan Program for Fiscal Years 2013-2014, the NCUA noted. Money for the program could be derived from appropriated and earned funds, the agency said.
The agency offered $11 million in low-rate loans through the 2012 round of the program. The program provides loans to credit unions serving predominantly low-income members. It also serves as a source of funding to help low-income designated credit unions (LICUs) respond to emergencies arising in their communities.
The NCUA began accepting loan applications for this round on Jan. 1, and applications will be accepted until Dec. 31, 2013. However, the agency said loan program funds may be exhausted before this deadline is reached.
The NCUA expects that most of the loans provided under this NOFO will be for $300,000 or less, as "loans of this size will help maximize allocation of this limited resource among many credit unions." The agency said it will also consider loan requests for more than $300,000 "from applicants that demonstrate the need and capability to effectively deploy such funding; and have a high probability of realizing significant impact, while maintaining financial and operational soundness."
These applications will be assessed on a case-by-case basis, the NCUA said.
For more on the loan program, use the resource link.