ALEXANDRIA, Va. – NCUA on Monday announced it lowered the rates on its community development loans to just 0.4%, from an already-low 1%, to entice lending in its moribund Community Development Revolving Loan Fund.
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Despite the 1% rate, the $18-million fund has not made a loan in more than a year. NCUA says it now has a new high of $11 million available for low-interest loans.
NCUA said more than 1,100 credit unions are now designated as “low-income” and are eligible to participate in the program, which will award $1.3 million worth of small grants for technical assistance. Grants go up to $25,000 with an application deadline of June 29.
