NCUA Awards $1.5 Million to 105 Low-Income Credit Unions

The NCUA announced Wednesday $1.5 million in Community Development Revolving Loan Fund grants to help 105 low-income credit unions in 34 states plus the District of Columbia.

The grants were designed to help the credit unions expand outreach to underserved communities and improve digital services and security.

“At the NCUA, we are working to address priorities like closing the wealth gap and strengthening cybersecurity resilience,” NCUA Chairman Todd M. Harper said. “With these CDRLF grants, small, low-income and minority credit unions will have more capacity to serve low-income communities and bolster cybersecurity defenses. That is a good thing for credit unions and their members.”

The NCUA made awards in two categories. There were 22 grants for a total of $1 million for underserved outreach and 83 grants for $529,517 for digital services and cybersecurity. Sixteen credit unions were first-time grant recipients and 33 were Minority Depository Institutions (MDIs).

The NCUA awarded grants ranging from $1,500 to Precision Federal Credit Union of Keene, N.H. ($24.7 million in assets, 1,832 members) for digital services and cybersecurity to $50,000 to six credit unions, including Heart o’ Texas Federal Credit Union of Waco, Texas ($49.4 million in assets, 5,182 members), an MDI, for underserved outreach.

The geographic spread was from Alaska, where Tongass Federal Credit Union of Ketchikan ($127.1 million in assets, 8,756 members) was awarded $50,000 for underserved outreach, to Florida, where Jetstream Federal Credit Union of Miami Lakes  ($228.2 million in assets, 15,464 members) was awarded $7,000 to strengthen cybersecurity.

During this year’s grant round, the agency received 280 grant applications seeking more than $4.6 million.

“Year after year, demand for CDRLF funding continues to exceed supply. That is why I continue to request that Congress increase funding for CDRLF grants,” Harper said. “More funding would allow the NCUA to increase grant sizes and support more initiatives that expand access to safe and affordable financial services for underserved communities.”

The NCUA’s Office of Credit Union Resources and Expansion administers CDRLF grant funding to provide grants to credit unions serving low-income communities. The office also supports low-income-designated credit unions, credit unions interested in a low-income designation, minority credit unions, groups organizing to start new credit unions and credit unions seeking changes in their charters, bylaws or fields of membership.