The NCUA announced that 225 low-income credit unions received more than $2 million in funds in the agency's latest round of grants.
The NCUA's Office of Small Credit Union Initiatives administered the Community Development Revolving Loan Fund grant process, and its Director, William Myers, said the high degree of credit union participation has been encouraging.
“We were pleased and impressed at the response from so many credit unions,” Myers said. “There's a great sense of satisfaction that comes from making the kinds of investments that help low-income credit unions to thrive in a challenging financial and economic environment.”
Due to high demand, the NCUA said it only awarded one grant per credit union.
According to its announcement, the NCUA made a total of more than $735,000 in grants to 82 credit unions to help them expand their digital services, such as mobile or home banking or electronic bill payment.
The agency also made grants to 103 credit unions, which totaled nearly $733,000 total, to help them fight fraud and embed EMV chips in their credit and debit cards.
In addition, 14 credit unions received grants totaling just under $300,000 to open new branches in underserved areas or move from home-based locations to non-residential spaces.
The NCUA also made grants to 26 credit unions to help them offer a new product or service, such a new ATM or an asset liability management model, the agency said.
“The second grant round of 2015 proved to be the largest in (the) NCUA's history, with requests for more than $9.4 million coming from 580 low-income credit unions,” NCUA Chairman Debbie Matz said. “While the competition was tough, the current and future members of the low-income credit unions receiving these funds are the real winners in terms of new products and services, new locations and new protections.”
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