In a move to advance innovative credit union pilot projects
aimed at building memberships and expanding the reach of certain institutions,
the National Credit Union Administration (NCUA) recently awarded $400,000 in
Community Development Revolving Loan Fund (CDRLF) grants.
Four grants, totaling $100,000 apiece, will be distributed
by NCUA’s Office of Credit Union Resources and Expansion,
which administers the CDRLF grant program. The office also supports
low-income-designated credit unions; credit unions interested in a low-income
designation; minority credit unions; credit unions seeking changes in their
charters, bylaws, or fields of membership; and groups organizing to start new
credit unions.
“The NCUA launched this pilot grants initiative to recognize
creative ideas among credit unions trying to build membership and expand their
reach, especially to people and communities who had little or no access to
affordable financial services,” NCUA Chairman Todd Harper said in a press
release. “We found, through the application process, original and
forward-looking ideas that could serve as examples for other credit unions. It
will be exciting to watch how these grants will help these ideas to mature and
take hold.”
The grants were issued to the following institutions:
·
CBC Federal Credit Union in Oxnard, Calif., to
support a fintech partnership;
·
Greenstate Credit Union in North Liberty, Iowa,
to support affordable housing;
·
ELGA Credit Union in Grand Bank, Mich., to
support outreach to banking deserts; and
·
True Community Credit Union in Jackson, Mich.,
to support outreach to credit-invisible populations.
Twenty-six credit unions submitted applications for more
than $7.4 million under the pilot initiative.
The National Association of Federally-Insured Credit Unions
(NAFCU) has long advocated for increased funding for the NCUA’s CDRLF and
Treasury’s Community Development Financial Institutions (CDFI) Fund to provide
member credit unions access to resources intended to help them better serve
their communities. NAFCU noted in a press release it intends to continue
advocating for full funding for similar programs as lawmakers work on long-term
government funding plans.
In October, the NCUA issued CDRLF grants to 142 low-income
and minority depository institution-designated credit unions.