ALEXANDRIA, Va. – NCUA has awarded $1.9 million in grants from Community Development Revolving Loan Fund to help 155 low-income credit unions increase outreach to underserved communities, improve digital services and security, and train employees, the agency said.
The NCUA awarded grants ranging from $1,900 to $100,000 to credit unions in 40 states and the District of Columbia. Thirty-one credit unions are first-time grant recipients. Fifty-eight are minority depository institutions.
The NCUA made awards in four categories:
- Underserved outreach: 11 grants totaling $972,742
- Digital services and security: 73 grants totaling $550,612
- Training: 46 grants totaling $217,369
- Counselor certification: 35 grants totaling $161,925
The NCUA’s Office of Credit Union Resources and Expansion administers grant funding provided by the Community Development Revolving Loan Fund, which offers grants and loans to credit unions serving low-income communities. Since 2001, Congress has provided the NCUA with $22.8 million for these grants, the agency said.
Funding Under Scrutiny
As CUToday.info has reported, future funding for the program has been an ongoing target of budget cuts in Washington. In June, the House passed the fiscal year 2020 financial services and general government appropriations bill, which includes funding for credit union community programs.
CUNA and NAFCU at the time had sent letters of support for the legislation to Congress, citing the bill’s impact in funding for several credit union funds, including the Treasury’s Community Development Financial Institutions (CDFI) Fund and NCUA’s Community Development Revolving Loan Fund (CDRLF).
As of June 14, credit unions made up 274 of 1,061 certified CDFIs nationwide.
In August, lawmakers in the Senate passed the two-year $1.37-trillion budget deal.
With Congress back from August recess, the funds are expected to be split across 12 appropriations bills, which are then expected to be passed individually or in small packages, rather than one large omnibus.
Both credit union trade groups have said they will continue to advocate for full funding for credit union priorities, such as the CDRLF.
The complete list of CUs receiving grants this round can be found in CUToday.info’s The Gov.