Millions of Dollars in CDRLF Grants Available for CUs
Eligible credit unions can apply for $3.5 million in grant money to serve the underserved.
The NCUA will administer $3.5 million in Community Development Revolving Loan Fund (CDRLF) grants to eligible credit unions this year, the agency announced Wednesday.
According to the NCUA, applications for the grant money opens up on May 1 and will close June 30. NCUA officials will select “the most-qualified applicants” to receive the money. The grant money will be awarded in five categories. The categories published by the NCUA included:
1. Underserved Outreach (maximum award of $50,000): Helping credit unions expand safe, fair and affordable access to financial products and services to underserved communities and improve the financial well-being of their members.
2. MDI Capacity Building (maximum award of $50,000): Preserving MDI credit unions and increasing their ability to thrive and serve minority populations.
3. Consumer Financial Protection (maximum award of $10,000): Ensuring credit unions have the resources and expertise to protect credit union members, raise awareness of potential frauds, and facilitate access to fair and affordable financial services.
4. Digital Services and Cybersecurity (maximum award of $10,000): Providing assistance to credit unions to modernize information and security systems to better protect themselves and their members from cyberattacks.
5. Training (maximum award of $5,000): Strengthening credit unions through succession planning, leadership development, staff education and professional development.
NCUA Chairman Todd Harper said, “This year, we have new opportunities for credit unions that are considering applying for a 2023 CDRLF grant. Congress more than doubled the CDRLF funding for 2023 and added minority depository credit unions as eligible institutions. So, both low-income credit unions and minority depository institutions can now use CDRLF grants to build capacity, invest in their communities, reach under-resourced populations, and provide their members with products and services to strengthen their economic security.”
Of note, President Joe Biden included an increase of $500,000 for the CDRLF to raise the funding budget to $4 million in his 2024 budget proposal.
The NCUA is also including two new grant initiatives during this first CDRLF funding round of the year. They are:
1. Impact Through Innovation (maximum award of $100,000): A pilot initiative addressing underserved communities by focusing on banking deserts, affordable housing, credit invisibles and fintechs.
2. Small Credit Union Partnership (maximum award of $50,000): A pilot initiative helping small credit unions pool their resources to help them achieve their growth objectives.
The NCUA stressed that credit unions need to conduct careful research to ensure they are eligible for the grant money before applying. For instance, “The 2023 CDRLF grant round is open to credit unions with either a low-income designation or certification as a minority depository institution,” the NCUA stated. “A credit union applying for a CDRLF grant must have an active account with the System for Award Management, or SAM, and a unique entity identifier number they will receive when they register for a SAM account.”
Specific eligibility requirements and application instructions can be found using the following links provided by the NCUA: