Low-income designated credit unions affected by recent Louisiana floods can apply for up to $7,500 in urgent need grant assistance to repair damage or restore services to members through the National Credit Union Administration, according to an NCUA news release.
According to the NCUA’s guidelines, examples of potential projects that may be eligible for grant assistance include:
• Repairing damage to the credit union that has occurred from natural disasters;
• Repairing damage to the credit union’s premises that is not covered by insurance;
• Replacing equipment needed to immediately restore services to members such as a result of power outages caused by storms;
• Paying consultant fees for records reconstruction after a natural disaster; and
• Converting a data servicer following an event such as a vendor bankruptcy.
Agency staff members are helping eligible credit unions in the flooded areas apply for the low-income credit union designation, according to the news release. More information on the grant guidelines can be found at https://www.ncua.gov/services/Pages/small-credit-union-learning-center/Documents/urgent-need-grant-guide.pdf.
Meanwhile, the NCUA announced it continues to work with federally insured credit unions in Louisiana to help them better serve flood victims and ensure continuity of operations.
“Louisiana’s credit unions can and should work with their members, many of whom have lost everything they own, to help them recover and rebuild their lives,” NCUA Board Chairman Rick Metsger said in the release. “Working constructively with credit union borrowers who may experience financial difficulty as a result of this extraordinary flooding is in the long-term best interest of both the credit union and the member.”
NCUA encourages credit unions to consider options to assist affected members such as offering new loans with special loan terms or rates and reduced documentation, providing payment flexibility for current loans, or potentially restructuring existing loans. Federal credit unions with questions about these options should contact their examiners, according to the release.
Federal credit unions in affected flood areas also may provide emergency financial services to nonmembers as part of their authority to engage in charitable activities. Such services could include check cashing, access to ATM networks or other means to obtain cash to help nonmembers with their short-term, emergency needs, according to the release.
During natural disasters, the NCUA also works to ensure all federally insured credit unions are aware of assistance that may be available to them. Under the agency’s disaster relief policy, NCUA will, when necessary, encourage credit unions to make prudent loans with special terms and reduced documentation to affected members; reschedule routine examinations of affected credit unions if necessary; guarantee lines of credit for credit unions through the Share Insurance Fund; and make loans to meet the liquidity needs of member credit unions through the Central Liquidity Facility, the release stated.
The full news release is available at https://www.ncua.gov/newsroom/Pages/credit-unions-assist-louisiana-flood-victims.aspx.
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