Credit unions are facing unpredictable challenges and costs because of the COVID-19 pandemic. In response to this, the NCUA is committing the majority of the 2020 Community Development Revolving Loan Fund appropriation for COVID-19 assistance for federally insured credit unions. Eligible credit unions have until May 22 to apply for the COVID-19 emergency response grants through the NCUA’s CyberGrants portal.
The agency is committing $1,375,000 for grants to eligible low-income credit unions, an increase of $575,000 from the amount originally announced on March 31. This funding will supplant the traditional Community Development Revolving Loan Fund grant categories. The agency will make funding available for its minority depository institutions mentoring program later this year.
Given the anticipated need, the NCUA’s Office of Credit Union Resources and Expansion will work to review grant applications as quickly as possible.
Grant awards may be used to:
- Offer rental, mortgage, and utility payment assistance to members such as entrepreneurs, small business owners, and hospitality and service industry employees;
- Offer loan payment relief to affected members;
- Develop a new product or service for affected members, such as offering preloaded cards; or
- Cover costs associated with moving credit union operations to remote locations, such as laptops, software, and short-term rentals.
The grants, with a maximum amount of $10,000, will be awarded on a rolling basis throughout the open application period. Minority depository institutions and credit unions with less than $100 million in assets will receive priority. The NCUA will make awards on a first-come, first-serve basis until the earmarked funds are fully exhausted.
Credit unions with questions should contact the Office of Credit Union Resources and Expansion by email at CUREApps@ncua.gov.