ALEXANDRIA, Va. – NCUA has awarded grants totaling more than $2 million to 225 low-income credit unions to help expand products and services, open branches or relocate offices, advance digital growth and provide greater security for their members.
“The second grant round of 2015 proved to be the largest in NCUA’s history, with requests for more than $9.4 million coming from 580 low-income credit unions,” NCUA Board Chairman Debbie Matz said in a statement. “While the competition was tough, the current and future members of the low-income credit unions receiving these funds are the real winners in terms of new products and services, new locations and new protections.”
NCUA said it awarded grants for four initiatives, in the amounts shown for each:
- Digital Growth. NCUA awarded 82 grants totaling $735,778 for the development of digital products, such as electronic bill payment, an interactive website, mobile or home banking, electronic or digital signatures, mobile or online loan applications and remote deposit capture.
- Fraud Prevention and Cybersecurity Protection. NCUA awarded 103 grants totaling of $732,818 to assist in fraud prevention and cybersecurity efforts, like training, converting debit or credit cards to EMV technology, or obtaining a system’s test or risk assessment.
- Building Capacity and Growth. NCUA awarded 14 grants totaling $299,950 to allow credit unions to open new branches in underserved areas or relocate from a home-based to a non-residential location.
- New Product and Service Development. NCUA awarded 26 grants totaling $239,400 to permit credit unions to offer a new product or service, such as a member business lending program, installation of a new ATM or an asset-liability management model.
Due to the high demand, NCUA said it awarded only one grant per credit union. Since 2001, NCUA has received more than $14.8 million from Congress for grants to low-income credit unions.
NCUA has sent grant notifications by e-mail, and a credit union may check its CyberGrants login for its application status. Credit unions that did not receive a grant in 2014 and those with higher CAMEL composite or CAMEL management ratings received priority for funding. NCUA said it also evaluated a credit union’s service to its membership in making funding decisions.