ALEXANDRIA, Va.– Grants totaling nearly $2.5 million have been awarded by NCUA to 309 low-income credit unions to be used to expand services to underserved communities, train staff, improve cybersecurity and provide students with work experience.
“This grant round was the largest in NCUA’s history,” NCUA Board Chairman Rick Metsger said. “These grants will help credit unions provide affordable financial services to more people, improve operations and train a new generation of leaders. Our grant program is also another way of promoting a safe, sound and innovative credit union system. I encourage low-income credit unions to apply for this assistance in future grant rounds.”
The agency received applications from 608 credit unions for more than $9.6 million. A list of grantees is available online here. Due to the high demand, NCUA said it awarded only one grant per credit union.
NCUA’s Office of Small Credit Union Initiatives administers the grant funding provided by the Community Development Revolving Loan Fund, which offers grants and loans to credit unions serving low-income communities. Congress established the fund to provide grants and loans to credit unions serving low-income communities. Since 2001, Congress has provided NCUA with more than $16.8 million for these grants.
“Each year, we look at the challenges low-income credit unions face and develop initiatives that support growth and member outreach,” Office of Small Credit Union Initiatives Acting Director Martha Ninichuk said. “Demand for grant funds continues to surpass available funding and reflects credit unions’ need for assistance to help them implement new products and strategies.”
In the most recent round, NCUA said it awarded grants in four initiative areas:
- Capacity and growth: NCUA awarded 116 grants, totaling $1,495,163, to credit unions expanding financial access to underserved communities through digital products, lending programs and other growth strategies.
- Cybersecurity: NCUA awarded 112 grants, totaling $752,529, to help credit unions better protect member information and other sensitive data.
- Student internships: NCUA awarded 33 grants, totaling $125,795, for credit unions to provide students with professional work experiences.
- Staff training: NCUA awarded 48 grants, totaling $125,700, for credit unions to train staff in areas like lending, collections and governance.
Urgent needs grants for emergency assistance are available year-round, subject to funding availability. More information about those grants is available online here.