The NCUA will make an additional $2 million available to low-income credit unions in the second round of Community Development Loan Fund grants in 2015, the agency announced today.
Money will be provided to fund new initiatives in four distinct areas aimed at expanding member services and protecting member data safety, the agency said. Credit unions may apply for the loans beginning June 1 and ending June 30 at 5 p.m. Eastern time. Applicants are eligible for different loans in different categories, but the requests may not exceed a total of $24,000, the NCUA said.
The four categories and their maximum loan amounts are as follows:
1. Building capacity and growth. The NCUA plans to award grants worth up to $24,000 to credit unions interested in opening a new branch in an underserved areas or relocating from a home-based to a non-residential location.
2. Digital growth. Up to $10,000 is available for each eligible credit union to offer digital products to members, such as electronic bill payment, an interactive website, mobile or home banking, electronic or digital signatures, mobile or online loan applications and remote deposit capture.
3. Fraud prevention and cybersecurity. New for 2015, the NCUA will provide up to $7,500 to each eligible credit union to assist in developing its fraud prevention and cybersecurity efforts. Credit unions may use funds for cybersecurity training, to convert debit or credit cards to EMV technology or obtain a system's test or risk assessment.
4. New product service development. The NCUA will award individual grants of up to $10,000 to credit unions that want to offer a new product or service such as implementation of a member business lending program, installation of a new ATM or an asset-liability management model.
"The NCUA's grants help low-income credit unions to perform better," NCUA Board Chairman Debbie Matz said. "These investments support growth by allowing credit unions to offer expanded products and services, open branches to make those products and services more accessible, and provide greater security for their members."
Congress approved $2 million this year for the NCUA's Community Development Revolving Loan Fund, the single largest technical assistance appropriation in the fund's history. The NCUA's Office of Small Credit Union Initiatives will administer the grants.
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