ALEXANDRIA, Va. – NCUA has released its Community Development Revolving Loan Fund report to Congress, which it said highlights how the fund has had a “significant, positive impact on low-income credit unions, their members, and communities across the country.”
In conjunction with the release of the report, NCUA Chairman Todd M. Harper also requested Congress consider increasing the fund’s appropriations in 2022.
“Since its creation, the Community Development Revolving Loan Fund has been an efficient and effective program for targeting public resources to do public good,” Harper said. “Because demand regularly exceeds the amount of available funds for these grants, and because low-income credit unions are more likely to serve communities disproportionately impacted by COVID-19, I urge Congress to increase appropriations for CDRLF grants in 2022. With more funding, the agency could increase the number of credit unions receiving grants and increase the size of the grants it makes, deepening the program’s impact in underserved communities.”
NCUA said the CDRLF Annual Report to Congress details the program’s performance and its significant accomplishments in 2020. A complete list of grant and loan awardees and a breakdown of awardees and funding by state is also included in the report.
‘Significant Challenges’
In 2020, NCUA said it devoted nearly all its CDRLF efforts to help credit unions and their members meet the significant challenges posed by the COVID-19 pandemic. Overall, the agency said it received 432 technical assistance grant and loan requests for a total of $7.6 million.
NCUA noted its funding capacity allowed it to only award $3.7 million in technical assistance grants and loans to 165 credit unions.
In addition, NCUA awarded 149 credit unions in 42 states and the District of Columbia more than $968,000 in urgent need grants.
The agency noted Congress created the CDRLF to stimulate economic development in low-income communities served by credit unions, with a goal of assisting the low-income-designated credit unions that use the funding to improve and expand services to members, build capacity, and stimulate local economic activity.
“Although relatively small in size, these grants make a big difference to low-income and minority credit unions working to provide more and better services to their members and communities,” NCUA said.
Additional Info
The agency added it does not use appropriated funds to administer the CDRLF.
Additional information is available here.