ALEXANDRIA, Va. (6/27/12)--Low-income credit unions (LICU) have until June 29 to apply for the $1.3 million available this year for technical assistance grants through the Community Development Revolving Loan Fund (CDRLF).
Applications for CDRLF reduced-rate loans, however, will be accepted from LICUs through the rest of the year or until the associated $11 million in funds is exhausted.
The National Credit Union Administration (NCUA) sent out a reminder yesterday that LICUs have until 5 p.m. (ET) Friday to participate in the 2012 application process for CDRLF grants of up to $25,000. The agency's Office of Small Credit Union Initiatives administers the CDRLF.
The 2012 CDRLF funding round is the first using the NCUA's new automated online application process, intended to make it much easier to accesses the free funding.
The NCUA has prioritized grants for:
- Financial literacy and education in school branches;
- New product and service development;
- Staff, official, and board member training;
- Student and job creation internships; and
- Volunteer Income Tax Assistance.
To help any credit union learn about the CDRLF grant program the NCUA has posted a video on its YouTube channel , issued guidance in a Letter to Credit unions, and posted grant application guidelines to its website (use links to access these resources).
Credit unions may obtain CDRLF loans up to $300,000, but a new rule adopted by the NCUA last year allows higher loans on a case-by-case basis. For 2012, NCUA has set the interest rate at a record low of 0.4%.