ALEXANDRIA, Va. (12/5/13)--Starting on Feb. 3, credit unions will be able to apply for their share of $481,000 in technical assistance grants, the National Credit Union Administration announced Wednesday.
Low-income designated credit unions can apply for up to $16,500 in funds to help cover the costs of:
A new Community Development Financial Institution (CDFI) certification;
New products; and
Applications will be accepted until Feb. 14.
"These grants will help America's low-income credit unions remain viable and respond to the evolving needs of their members," NCUA Chairman Debbie Matz said. "The funding to assist low-income credit unions in qualifying for a CDFI certification is a welcome addition to NCUA's long-standing grant program. CDFI-certified financial institutions have access to additional capital, which can help them create jobs and promote financial stability in some of our nation's most underserved communities," she said.
The U.S. Treasury's CDFI Fund helps locally based financial institutions--including credit unions--offer small business, consumer and home loans in communities and populations that lack access to affordable credit. Credit unions that are certified to take part in the CDFI program may apply for as much as $2 million in funding to help maintain their credit union's presence in the community.
Credit unions made 73 requests for a total of around $77 million in funds for the 2013 fiscal year CDFI Fund program. More than $21 million in CDFI Fund awards and grants were released to 35 low-income credit unions. Overall, 191 organizations were awarded a total of more than $172 million when fiscal 2013 CDFI Fund awards were announced in late September.