NCUA announced on Monday that it is committing the majority of the 2020 Community Development Revolving Loan Fund appropriation to COVID-19 assistance.
The assistance is in addition to the funds that the agency first announced on March 31 to support credit unions in their COVID-19 response, committing $4 million in loans and $800,000 in grants.
NCUA is now committing $1.375 million for grants to eligible low-income credit unions, an increase of $575,000, according to an NCUA press release.
“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 Hood said in the press release. “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.”
Eligible credit unions may apply for the COVID-19 emergency response grants, which have a maximum award of $10,000, until May 22 through NCUA’s CyberGrants portal.
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; or
- cover costs associated with moving credit union operations to remote locations, such as laptops, software and short-term rentals.
Grants will be awarded on a rolling basis throughout the open application period, and minority depository institutions and credit unions with less than $100 million in assets will receive priority. Awards will be provided on a first-come, first-serve basis until the earmarked funds are exhausted.
The full press release can be accessed on NCUA’s website.