The federal credit union regulator is accepting applications for loans from its Community Development Revolving Loan Fund (CDRLF), with a total of $13 million available for loans to low-income-designated credit unions.
The National Credit Union Administration (NCUA) announced the funding availability in a press release Wednesday.
The agency, in a Federal Register notice set to publish Thursday, said loans ranging from $50,000 to $500,000 are available through this opportunity. In its release, it said loans can be for up to five years and will be provided at an annual interest rate of 1.5%.
Credit unions can use funds from these low-interest loans “to complete capacity building activities required to grow and meet the unique needs of their members,” the F.R. notice says. It says eligible project activities include, but are not limited to, expenses related to:
- Development of new products or services for members, including new or expanded share draft or credit card programs
- Partnership arrangements with community-based service organizations or government agencies
- Loan programs, including, but not limited to, microbusiness loans, payday loan alternatives, education loans, and real estate loans
- Acquisition, expansion, or improvement of office space or equipment, including branch facilities, ATMs, and electronic banking facilities
- Operational programs
It said emergency loans are also available for qualifying credit unions responding to an unforeseen emergency “such as natural disasters, unexpected events outside of the credit union’s control, or declared state or national emergencies.” It said emergency loan awards “may differ in term, interest rate, and allowable activities based on the emergency faced.”
The F.R. notice says credit unions eligible to apply in this funding round include federally insured credit unions with NCUA’s low-income designation; and non-federally insured credit unions with a state regulator’s low-income designation “made under appropriate state standards with the concurrence of NCUA.” Services to low-income members must include at least the offering of share accounts and loans, it says.
Eligible credit unions also must have an active registration with the federal government’s System for Award Management (SAM.gov), the notice says.
The application review period is about 180 days, it says.
NCUA release: CDRLF Loan Program Offers Additional Opportunities
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