The National Credit Union Administration (NCUA) recently awarded $3.1
million in Community Development Revolving Loan Fund (CDRLF) grants to 142
low-income and minority depository institutions (MDIs).
Noting that Congress designated additional funding and
allowed MDI-designated credit unions to qualify for CDRLF grants in 2023, the
NCUA took the opportunity to offer increased support to institutions that could
use it.
“These grants have a track record of success. Qualifying
low-income and MDI-designated credit unions use these needed funds to create
innovative products, provide financial education, and broaden access to safe,
fair, and affordable financial products and services,” NCUA Chairman Todd
Harper said in a release. “This expands opportunity and assists members and
communities nationwide in building financial security.”
The grants to be awarded by NCUA range from $1,000 to
$50,000 and will be provided to credit unions in 40 states and the District of
Columbia, according to the release. Forty-two awardees were MDIs, and 23 were
first-time applicants. The NCUA made awards in five categories:
·
Underserved Outreach: 26 grants totaling
$1,265,000
·
MDI Capacity Building: 23 grants totaling
$1,079,200
·
Digital Services and Cybersecurity: 79 grants
totaling $725,900
·
Training: 12 grants totaling $59,600
·
Consumer Financial Protection: Two grants
totaling $16,500
In 2023, the NCUA received 290 grant applications totaling
more than $7.7 million, the release stated.
The NCUA’s Office of Credit Union Resources and
Expansion administers CDRLF grants to credit unions. 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.