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NCUA marks $1.3M of CDRLF for coronavirus assistance
The NCUA Monday announced that it is committing the majority of the 2020 Community Development Revolving Loan Fund (CDRLF) to provide coronavirus assistance to low-income credit unions. It is increasing its original allotment to $1.3 million.
"The increase in available grant funding will help more low-income credit unions to continue offering quality and affordable financial services to their members and communities," NCUA Chairman Rodney Hood said in a release.
The funding for coronavirus assistance supplants traditional CDRLF grant categories. Eligible credit unions can apply for these emergency response grants through May 22 using the NCUA's CyberGrants portal. The agency said its Office of Credit Union Resources and Expansion (CURE) will review applications as quickly as possible.
The maximum award amount is $10,000 and the grants will be awarded on a rolling basis throughout the open application period, with minority depository institutions and credit unions with less than $100 million in assets receiving priority. The grants 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.
In addition to the grants, the NCUA has made $4 million in loans available to low-income credit unions. The maximum loan amount is $250,000 and will mature in three years. No interest rate will be applied to these loans and the entire principal is due at maturity. These loans can also be applied for through the CyberGrants portal.
NAFCU remains in close contact with the NCUA to further discuss the association's requests for relief to help credit unions deal effectively with the coronavirus. Access all NAFCU's coronavirus resources here.