WASHINGTON—Low-income designated credit unions can begin applying for grants through NCUA's Community Development Revolving Loan Fund (CDRLF) May 3. The agency said it plans to distribute approximately $1.5 million in grants, according to the notice of funding opportunity.
Eligible credit unions can submit applications for grants through June 26 via the NCUA's CyberGrants portal in these categories:
Digital Services and Cybersecurity
With a max amount of $7,000, the grants are for credit unions to “modernize, innovate, and protect their institutions and members against cyberattacks with the goal of increasing access to safe, secure digital financial products and services in low-income and underserved communities.”
NCUA also encouraged credit unions to apply for the initiative to address challenges created by the coronavirus pandemic. Applicants can use the funds toward:
- Implementation of mobile/online banking features
- Remote workforce management and solutions
- Strengthening cybersecurity
MDI Mentoring
NCUA began offering grants for its MDI mentoring program in 2019 and has provided six recipients with funds over the past two years.
With a max amount of $25,000, mentoring grants are provided to help credit unions establish a mentorship and meet these objectives, according to the agency:
- Credit union growth and expansion, such as growing the membership or loan portfolio
- Improved management and operations, such as leadership training, developing new policy and procedure documents, or responding to exam or audit findings
- Increased credit union capabilities, such as introducing a new program or service or improving credit union systems
- Other projects proposed by applicants and approved by the NCUA
Underserved Outreach
With a max amount of $50,000, NCUA said these grants are designed to help credit unions implement innovative outreach strategies to increase access to financial products and services in underserved communities with the goal of improving their financial health by closing the wealth gap, increasing equity, and expanding economic inclusion. Credit unions can use the funds to support projects such as:
- New or expanded outreach efforts, such as developing partnerships with other organizations to assist the needs of low wealth persons and households
- New or expanded financial education programs, such as providing small business or workforce training for minorities interested in starting and growing a business
- New or expanded financial products or services, such as developing and implementing a new product or program tailored to underserved and minority groups, like a first-time homeowner program