WASHINGTON–The National Credit Union Foundation is looking for state leagues or foundations to submit proposals to receive support and assistance in starting their own non-prime auto loan program.
The Foundation is looking to fund and provide technical support to assist up to five state leagues or foundations in starting their own non-prime auto loan program. In addition, the Foundation said it will be granting $20,000 to each successful applicant who will recruit 10 or more credit unions capable of generating a combined 10,000 of low-score auto loans within an 18-month period during the length of the program. The deadline for leagues and state foundations to submit their applications is Feb. 15, 2017.
Click Here for the Request for Proposals (RFP) Document (pdf)
“We have already seen great success with non-prime auto lending through our pilot program and are now looking to grow that impact,” said Gigi Hyland, executive director of the Foundation, in a statement. “Through these auto-loan loan programs, credit unions can add to their bottom lines, while also filling the social need of helping consumers improve their health and well-being through affordable credit for used cars. With the help of these grants, leagues and foundations will serve as a catalyst for change in low-score lending across the credit union movement.”
The NCUF said it is estimated that families can increase their income by as much as 25% with access to reliable transportation. With 88% of Americans driving to work, there is a need and an opportunity for leagues, foundations and credit unions with regards to this type of lending, the Foundation said.