Most of its congressional appropriation for community development – more than $1.37 million – will be committed to assisting credit unions in dealing with the coronavirus crisis, the federal credit union regulator said Monday.
In a release, the National Credit Union Administration said it was committing the majority of its 2020 congressional appropriation for its Community Development Revolving Loan Fund (CDRLF). The agency said it made the move out of recognition of the “immediate needs of credit unions and their members in the COVID-19 pandemic.”
In March, the agency announced it was setting aside $800,000 in grants to eligible low-income credit unions to help them deal with the crisis. According to the agency, its new commitment Monday of $1.37 million for the grants is an increase of $575,000 from the March announcement.
The agency said the funding will replace traditional CDRLF grant categories. NCUA said it would make funding available for its mentoring program for minority depository institutions later this year.
Grants from the fund have a maximum award of $10,000; they are awarded on a rolling basis throughout the open application period, which ends May 22, the agency said. Awards may be used for:
- 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;
- developing a new product or service for affected members, such as offering preloaded cards; or
- covering costs associated with moving credit union operations to remote locations, such as laptops, software, and short-term rentals.