ALEXANDRIA, Va. (5/23/12)--The National Credit Union Administration (NCUA) on Tuesday began accepting low-income credit union (LICU) applications for loans and grants under the 2012 round of the Community Development Revolving Loan Fund (CDRLF).
Eligible credit unions may apply for as much as $25,000 in grant funding and loans of as much as $300,000, the agency said. Loans exceeding $300,000 may also be approved on a case-by-case basis, the NCUA said.
Applications must be received by the agency by June 29.
The agency is offering a total of $1.3 million in grants and $11 million in low-rate loans this year. Grant funds can be used to support LICU's financial literacy, staff and board member training, internship, and tax prep assistance efforts.
According to the NCUA, loan funds may be used to:
- expand share draft or credit card programs;
- create partnerships with community-based service organizations and government agencies;
- acquire, expand, or improve office space or equipment;
- initiate or expand micro-business, education, and real-estate loan programs; and
- offer consumer-friendly, short-term alternatives to payday loans.
NCUA Chairman Debbie Matz said LICUs "fill a crucial role by providing needed access to financial products and services for individuals of modest means," adding that the CDRLF loans and grants "are designed to provide vital assistance to low-income credit unions so they will be available to serve their members for many years to come."
Eligible credit unions may file a single application for all funding initiatives, and reimbursement requests for multiple grant initiatives can be bundled together, the NCUA said earlier this year. These changes will allow the NCUA to process grant requests more quickly, and will also speed the disbursement of grant related funds, the agency added.
For the full NCUA release, use the resource link.