ALEXANDRIA, Va.– NCUA said it is committing the majority of the 2020 Community Development Revolving Loan Fund appropriation for COVID-19 assistance.
Separately, the agency also announced it will be cohosting a free webinar for consumers on deposit insurance.
The agency said it is committing $1,375,000 for grants to eligible low-income credit unions, an increase of $575,000 from the $800,000 originally announced on March 31. The funding will supplant the traditional Community Development Revolving Loan Fund grant categories, NCUA reported, adding it will make funding available for its minority depository institutions mentoring program later this year.
May 22 Deadline
Eligible credit unions have until May 22 to apply for the COVID-19 emergency response grants through the NCUA’s CyberGrants portal. Given the anticipated need, the NCUA said its Office of Credit Union Resources and Expansion will work to review grant applications as quickly as possible.
“The NCUA recognizes that federally insured credit unions will face unpredictable challenges and costs as a result of the COVID-19 pandemic,” NCUA Chairman Rodney E. Hood said in a statement. “The increase in available grant funding will help more low-income credit unions to continue offering quality and affordable financial services to their members and communities. I encourage all eligible credit unions in need to consider applying for these grants as a means to ensure service to their members.”
How Grants May Be Used
NCUA said grant awards may be used to:
- Offer rental, mortgage, and utility payment assistance to members such as entrepreneurs, small business owners, and hospitality and service industry employees
- Offer loan payment relief to affected members
- Develop a new product or service for affected members, such as offering preloaded cards
- Cover costs associated with moving credit union operations to remote locations, such as laptops, software, and short-term rentals
The grants, with a maximum award of $10,000, will be awarded on a rolling basis throughout the open application period. Minority depository institutions and credit unions with less than $100 million in assets will receive priority, according to NCUA, which said it will make awards on a first-come, first-serve basis until the earmarked funds are fully exhausted.
Any questions should be directed to CUREApps@ncua.gov.
NCUA, FDIC to Co-Host Webinar Thursday on Deposit Insurance
Separately, NCUA and the FDIC are joining to host a free webinar on Thursday designed to increase awareness of the benefits of federal deposit and share insurance, and to also answer questions about the safety of deposits at federally insured financial institutions.
Representatives from the NCUA and FDIC will share tools, tip sheets, and other resources that can help consumers manage their household finances during the current national health emergency and recognize potential fraud and scams, the agencies said.
The webinar is open to the public and will be held April 16 from 2 -3 p.m. ET.
To register, go here.