The National Credit Union Administration (NCUA) has awarded grants totaling almost $2.5 million that will help 309 low-income credit unions "expand services to under-served communities, train staff, improve cyber-security and provide students with work experience."
It was the largest grant round in NCUA's history, said NCUA board chairman Rick Metsger.
The agency said it received applications from a total of 608 credit unions – and due to the high demand, NCUA awarded only one grant per credit union.
"These grants will help credit unions provide affordable financial services to more people, improve operations and train a new generation of leaders," Metsger added. "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."
In this round, NCUA 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 (112 grants awarded, totaling $752,529, to help credit unions better protect member information and other sensitive data; Student internships: (33 grants, totaling $125,795, for credit unions to provide students with professional work experiences); and Staff training (48 grants, totaling $125,700, for credit unions to train staff in areas like lending, collections and governance).
NCUA's Office of Small Credit Union Initiatives (OSCUI) administers the grant funding provided by the Community Development Revolving Loan Fund, which offers grants and loans to credit unions serving low-income communities.
"Each year, we look at the challenges low-income credit unions face and develop initiatives that support growth and member outreach," OSCUI 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."
