NCUA to Award up to $1.5 Million for 2021 Community Development Grants
June 26 is the deadline for applications for grants from the revolving loan fund.
Low-income-designated credit unions can apply for the next round of Community Development Revolving Loan Fund grants from May 3 to June 26, the NCUA announced late last week.
The fund has up to $1.5 million available for the grants this year for low-income-designated credit unions, the same as in 2020 and down from $2 million in 2019. The designation applied to 2,655 of the nation’s 5,207 credit unions as of December 2020.
NCUA Chairman Todd M. Harper encouraged all eligible credit unions to consider applying.
“These grants make a tremendous difference to small, low-income and minority credit unions working to provide more and better services to their members and communities or seeking to bolster their own capacity,” Harper said. “As these credit unions and their members continue to disproportionately face the challenges of the COVID-19 pandemic, this funding is very important.”
Grants will be awarded in three categories:
1. Underserved Outreach (maximum award of $50,000). The goal is for credit unions to improve the financial health of individuals in underserved communities by closing the wealth gap, increasing equity and expanding economic inclusion.
2. Digital Services and Cybersecurity (maximum award of $7,000). The goal is to increase the access of safe, secure digital financial products and services to low-income and underserved communities. The NCUA also encourages credit unions to apply for this initiative to help the credit union meet the challenges created by the COVID-19 pandemic.
3. Minority Depository Institution Mentoring (maximum award of $25,000). The purpose is to encourage strong and experienced credit unions to provide guidance to small MDI credit unions to increase their ability to thrive and serve low-income and underserved populations.
Last year, three credit unions received $75,000 total in MDI Mentoring grants.
Grant requirements, application instructions and other important information are available on the grants program page of NCUA.gov. Information can also be found on the Federal Register.
Credit unions will use the NCUA’s cybergrants portal to submit their applications. Credit unions with other questions about CDRLF grants may contact the NCUA’s Office of Credit Union Resources and Expansion at CUREAPPS@ncua.gov.