Grant funding available to low-income credit unions

Low-income credit unions interested in applying for Community Development Revolving Loan Fund grants can begin submitting applications on July 1, according to the National Credit Union Administration.

The grant program is designed to assist eligible credit unions in providing basic financial services to low-income members to stimulate economic activity in their communities. To qualify, credit unions must have a low-income credit union designation, or be a qualifying state-chartered credit union.

The NCUA’s Office of Small Credit Union Initiatives will determine credit unions’ eligibility through a competitive grant application process and administer approximately $2 million to the most qualified applicants, according to an NCUA news release.

According to the release, credit unions may apply for funding under one of four initiatives:

• Leadership development (maximum grant $10,000): This grant is used promote career development, management succession planning, diversity and inclusion training, or structuring essential employment positions.

• Digital services and security (maximum grant $7,500): This initiative is designed to improve digital member services as well as cybersecurity and fraud prevention. The grant can be used to offer services such as remote deposit capture, digital payments and wallets, or mobile loan applications. or to provide cybersecurity training or digital encryption.

• Small, low-income credit union capacity (maximum grant $7,500): Credit unions with assets of less than $30 million may apply for funding under this initiative to address operational challenges such as upgrading technology systems for greater efficiency and improved operations.

• Underserved communities (maximum grant $25,000): This grant supports projects designed to reach people living in underserved communities.

Applications for funding under the leadership development, digital services and security, and capacity initiatives must be received by July 31. Applications under the underserved communities grant initiative are due by Aug. 31.

More details about the grant application process, including an online application form, an explanation of grant requirements and other information is available by clicking here.