ALEXANDRIA, Va. (Sept. 15, 2020) – The National Credit Union Administration awarded $3.7 million in grants and no-interest loans to 162 low-income credit unions, helping them provide affordable financial services to their members and communities during the COVID-19 pandemic.
In April, the agency committed the majority of its 2020 Community Development Revolving Loan Fund allocation to COVID-19 assistance. The grants and loans went to low-income credit unions in 40 states and the District of Columbia.
The NCUA awarded 153 grants totaling nearly $1.5 million. Of those, 32 credit unions were first-time grant recipients. Forty-eight credit unions were minority depository institutions. Grant awards ranged from $900 to $10,000. The agency also approved nine no-interest loans of $250,000 each.
The grants and loans fell into four categories:
- Rental, mortgage, and utility payment assistance to members such as entrepreneurs, small business owners, and hospitality and service industry employees;
- Loan payment relief to affected members;
- New products or services for affected members; and
- Covering costs associated with moving credit union operations to remote locations, such as laptops, software, and short-term rentals.
Additionally, urgent need grants remain available. Eligible federally insured, low-income-designated credit unions can receive up to $7,500 for emergency and natural disaster relief. Low-income credit unions that wish to apply for urgent need grants should review the NCUA’s grant guidelines (opens new window) and apply through the agency’s CyberGrants portal (opens new window).
The NCUA’s Office of Credit Union Resources and Expansion administers grant funding provided by the CDRLF, which offers grants and loans to credit unions serving low-income communities. Since 2001, Congress has provided the NCUA with $22.8 million for these grants.