NCUA Opens Grant Cycle for Low-Income Designated Credit Unions
The funding can help credit unions continue to support members impacted by COVID-19.
The National Credit Union Administration has earmarked $800,000 in grants, and $4 million in loans to help Low-Income Designated Credit Unions respond to COVID-19 challenges. The grants and loans are being offered by the COVID-19 Emergency Fund Initiative, which NCUA created through the Community Development Revolving Loan Fund.
“Credit unions could use the grant funds to help school districts pay for breakfast and lunches while schools are closed; help their community’s elderly residents get food or medicine; or help impacted residents with mortgage payments, rent payments, or utility bills,” said John Trull, Northwest Credit Union Association Vice President, Regulatory Advocacy. “Credit unions are already doing this important work, but every dollar that can be deployed to help our most vulnerable members counts.”
Credit unions that have already incurred expenses related to COVID-19 may apply for grants and be reimbursed up to $10,000.
The NWCUA provides support with the federal system for award management (SAM.gov) registration.
“If you already are registered with the federal system for award management (SAM.gov) we can assist with completing the grant submission,” Trull said.
Applications from credit unions with less than $100 million in assets will be reviewed on a weekly basis with priority given first to Minority Depository Institutions and second to smaller asset–sized institutions.
The agency is also offering the opportunity for credit unions to apply for three-year, interest-free balloon note loan awards of up to $250,000 per credit union. Credit unions may apply for one type of emergency assistance — a grant or a loan.
The application period ends May 22, and NCUA will notify credit unions receiving awards through July 31 on a rolling basis.
Specific details about the grant and loan program can be found online.
Editor’s Note: Have a question about this story? Contact John Trull, VP, Regulatory Advocacy.