NCUA will make available $800,000 in grants and $4 million in loans to low-income designated credit unions in an effort to help them respond to the coronavirus pandemic.
NCUA’s Tuesday press release stated that its Office of Credit Union Resources and Expansion will award grants and loans to low-income credit unions to:
- provide assistance to schools with children in need, including providing breakfast and lunch;
- provide assistance to elderly members needing food and medication delivery services;
- 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; or
- cover costs associated with moving credit union operations to remote locations: laptops, software, and short-term rentals.
Loans have a maximum award of $250,000 and will mature in three years. There will be no interest rate applied to loans awarded under this initiative throughout the full term of the loan. 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. The NCUA will make awards on a first-come, first-serve basis until the allocated funds are fully exhausted.
“The COVID-19 pandemic will affect federally insured credit unions, members, and communities in a number of different ways,” NCUA Chairman Rodney E. Hood said in the press release. “Low-income credit unions serve many communities that are vulnerable to economic and financial disruptions resulting from the virus. This initiative can help eligible low-income credit unions provide needed support to their members and communities during this challenging time. I encourage all eligible credit unions to consider and apply for these special grants and loans.”
More information is available on NCUA’s website, and eligible credit unions can apply for the COVID-19 emergency response grants and loans through May 22 using the NCUA’s CyberGrants portal.