The National Credit Union Administration is providing $4 million in loans and $800,000 in grants to help low-income designated credit unions support their communities during the coronavirus pandemic.
Credit unions can use the funds for a variety of purposes, such as assisting schools that serve children in need, offering monetary assistance to members who work in the hospitality and service industries, and covering expenses tied to relocating the institution’s operations to remote locations, the regulator said Tuesday.
“The COVID-19 pandemic will affect federally insured credit unions, members and communities in a number of different ways,” Rodney E. Hood, NCUA chairman, said in a 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.”
Zero-interest loans of up to $250,000 with a maturity of three years will be awarded, the regulator said. There will be no penalty for prepayment.
Grants up to $10,000 will be awarded on an ongoing basis until the application deadline of May 22. Priority will be given to credit unions with less than $100 million in assets and minority depository institutions.
Another $700,000 in grants will be awarded for training, digital services, cybersecurity and other initiatives. Those applications will be accepted between May 1 and June 30.
The Office of Credit Union Resources and Expansion will be awarding the money, NCUA said. Funding for the initiative comes from the Community Development Revolving Loan Fund.
Earlier in March, NCUA said it was
