Community Development Revolving Loan Fund Program for Credit Unions

 

The purpose of the Community Development Revolving Loan Fund (CDRLF) is to expand access of financial products and services, and increase diversity, equity, and economic inclusion to underserved communities. Through the CDRLF, the NCUA provides financial support in the form of technical assistance grants to low-income designated credit unions (LICUs) serving predominantly low-income members to modernize, build capacity and extend outreach into underserved communities.

Active 44.002 National Credit Union Administration B - Project Grants; C - Direct Payments For Specified Use; E - Direct Loans Fiscal Year 2016 For the 2016, Grant Round, received 1,430 applications totaling $9.6 million. Grants totaling nearly $2.5 million will help 309 low-income credit unions expand services to underserved communities, train staff, improve cybersecurity and provide students with work experience. Funding Information: 309 CREDIT UNIONS RECEIVED $2,499,187 IN GRANT AWARDS. THE 309 OSCUI PROGRAM AWARD RECIPIENTS ARE LOCATED IN 41 STATES, THE DISTRICT OF COLUMBIA, PUERTO RICO, AND THE VIRGIN ISLANDS. 50 ARE MINORITY DEPOSITORY INSTITUTIONS. In the most recent 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: NCUA awarded 112 grants, totaling $752,529, to help credit unions better protect member information and other sensitive data. • Student internships: NCUA awarded 33 grants, totaling $125,795, for credit unions to provide students with professional work experiences. • Staff training: NCUA awarded 48 grants, totaling $125,700, for credit unions to train staff in areas like lending, collections and governance. For the 2016, Grant Round, received 1,430 applications totaling $9.6 million. Grants awarded total to approximately 2.5 million will help 309 low-income credit unions expand services to underserved communities, train staff, improve cybersecurity and provide students with work experience. Funding Information: 309 CREDIT UNIONS RECEIVED $2,499,187 IN GRANT AWARDS. THE 309 OSCUI PROGRAM AWARD RECIPIENTS ARE LOCATED IN 41 STATES, THE DISTRICT OF COLUMBIA, PUERTO RICO, AND THE VIRGIN ISLANDS. 50 ARE MINORITY DEPOSITORY INSTITUTIONS. In the most recent 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: NCUA awarded 112 grants, totaling $752,529, to help credit unions better protect member information and other sensitive data. • Student internships: NCUA awarded 33 grants, totaling $125,795, for credit unions to provide students with professional work experiences. • Staff training: NCUA awarded 48 grants, totaling $125,700, for credit unions to train staff in areas like lending, collections and governance.
Fiscal Year 2017 415 applications totaling $4.4 million were received during FY17. 274 applications totaling $2.4 million was awarded during FY17.
Fiscal Year 2018 243 applications totaling $2.5 million were received during FY18. 203 applications totaling $2 million was awarded during FY18.
Fiscal Year 2019 The NCUA received 250 technical assistance and urgent need grant applications totaling $6.5 million, and awarded more than $2.0 million in technical assistance and urgent needs grants to 166 low-income designated credit unions. 63 percent of the minority depository institution (MDI) credit unions that applied for a grant received an award, exceeding the agency's 40 percent target/goal for FY 2019. Recipients of these funds used them to increase their digital services and improve their levels of cybersecurity preparedness, engage in leadership and career development, and improve access to financial services in underserved areas. In addition, four credit unions received $1.0 million in low-interest loans during the year to expand product offerings to their members.
Fiscal Year 2021 Implementation of Mobile/Online Banking Features; Remote Workforce Management and Solutions; and/or Strengthen Cybersecurity. Credit union growth and expansion, such as growing the membership or the loan portfolio; Improved management and operations, such as leadership training, developing new policy and procedure documents, or responding to exam or audit findings; Increased credit union capabilities, such as introducing a new program or service or improving credit union systems; and/or Other (applicants will have opportunity to justify additional projects). New or expanded outreach efforts, such as developing partnerships with other organizations to assist the needs of low wealth persons and households; New or expanded financial education programs, such as providing small business or workforce training for minorities interested in starting and growing a business; or New or expanded financial products or services, such as developing and implementing a new product or program tailored to underserved and minority groups, like a first-time homeowner program. Omnibus Budget Reconciliation Act of 1981, as amended, Sections 623, 633, and 681, Public Law 97-35, 95 Stat. 494, 498 and 518, 42 U.S.C. 9812, 9822 and 9910; Public Law 98-63, 97 Stat. 331; Public Laws 99-609, 101-144, and 103-325., Title The Community Development Credit Union Revolving Loan Fund Transfer Act, Public Law 99-609, 12 - Banks and Banking U.S.C. 1772c-1, 1756, 1757(5)(D), and (7)(I), 1766, 1782, 1784, 1785 and 1786 This NOFO is open to credit unions that meet the eligibility requirements defined in 12 C.F.R. Part 705. A credit union must have a low-income designation obtained in accordance with 12 CFR ? 701.34 or 741.204 in order to participate in the CDRLF. Non-Federally Insured Applicants: Each Applicant that is a non-federally insured, state-chartered credit union must submit additional application materials. These additional materials are more fully described in 12 C.F.R. ? 705.7(b)(3) and in the application. Non-federally insured, state-chartered credit unions must agree to be examined by the NCUA. The specific terms and covenants pertaining to this condition will be provided in the award agreement of the Participating Credit Union. A credit union wishing to participate must serve a field of membership which is comprised primarily of low-income individuals. To participate in the CDRLF, a federally chartered credit union must be currently designated as a "low-income" credit union as set forth in NCUA's Rules and Regulations. A state-chartered credit union must have the equivalent low-income designation from its respective state supervisory authority and concurrence from NCUA. 12 CFR 701.34 A low-income designated credit union is one in which more than half of its members meet the NCUA definition for a "low-income member." Low-income members are those who earn 80 percent or less than the median family income for the metropolitan area where they live, or the national metropolitan area, whichever is greater. Low-income designated credit unions have offices and serve members throughout the United States, Puerto Rico, Guam, and the U.S. Virgin Islands, and on military bases around the world. Depending on the charter type, these credit unions serve occupational groups, associations and communities. Evidence of Chartering from the National Credit Union Administration. Evidence of Low Income Designation (12 CFR 701.34). Preapplication coordination is not applicable. 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. Process for Grants: (1) Credit unions fulfill all application responses and requirements for the grant and submit the request online. (2) NCUA will thoroughly review the application according to the selection process in the grant guideline. (3) NCUA will make a final decision and notify the credit union whether the request is approved or denied via email. (4) If the request is approved, then the credit union may initiate the project that was applied for. (5) After the project is completed and the credit union fulfills all of the grant requirements then they may submit a reimbursement request to the NCUA. Process for Loans: (1) Credit unions fulfill all application responses and requirements for the loan and submit the request online. (2) NCUA will thoroughly review the application according the criteria established in NCUA Rules and Regulations 12 CFR 705.7(c). (3) NCUA will make a decision and notify the credit union whether the request is tentatively approved or denied via email. (4) If the request is tentatively approved, NCUA will provide credit unions with instructions to complete the necessary loan documentation. (5) Credit unions review, sign, and submit the required loan documentation including, but not limited to, a loan agreement, promissory note, and amortization schedule. (6) NCUA will review and sign the loan documentation, then notify the credit union of the final approval via email. (7) NCUA will provide the credit union with copies of the signed loan documentation. (8) NCUA deposits the funds into the credit union's account on the effective date of the loan. The award procedure generally involves two or three steps of review by different staff. The final approval authority is completed by the Director (or designee) of the NCUA's Office of Credit Union Resources and Expansion. Three Step Review Process: The Initial Reviewer (IR) evaluates the request and determines if it satisfies the criteria for approval set forth in program guidelines. Then the Grant Administrator (GA) reviews the IR's recommendation to either confirm the recommendation or make another recommendation. Lastly, the Office Director or Deputy Director (OD) reviews the GA's recommendation to either confirm or deny the GA's recommendation, which results in a official final decision. Two Step Review Process: This process follows the same protocols as the Three Step Review Process. However, the GA initiates the evaluation of the request and determines if it satisfies the criteria for approval set forth in program guidelines. Then, the OD reviews the GA's recommendation to either confirm or deny the GA's recommendation, which results in a official final decision. The difference in this step is that the GA bypasses the IR's step during this process and is used for faster response on more simplified applications. May 3, 2021 to June 26, 2021 The NCUA will accept applications beginning May 3, 2021, at 9:00 a.m. eastern time (ET). Applications must be submitted by June 26, 2021, at 11:59 p.m. ET. The NCUA accepts loan applications on a continuous basis subject to funding availability. From 60 to 90 days. The NCUA will notify each Applicant of its funding decision by email. In addition, the NCUA will announce the successful applications through a press release that includes a list of the Awardees. Applicants that are approved for funding will also receive instructions on how to proceed with the post-award activities. From 15 to 30 days. Appeals of non-qualification: A Qualifying Credit Union whose application for a loan or technical assistance grant has been denied under ?705.7(f) for failure to satisfy any of the conditions set forth in ?705.7(c), including any additional criteria set forth in the related notice of funding opportunity, may request the Director of the Office of Credit Union Resources and Expansion to reconsider the denial and/or appeal that decision to the NCUA Board in accordance with the procedures set forth in subpart B to part 746 of this chapter, subject to the following limitations: (1) Scope: The scope of the Board's review is limited to the threshold question of qualification and not the issue of whether, among qualified applicants, a particular loan or technical assistance grant is funded. (2) Appeals procedures inapplicable: The foregoing procedure applies during an open period in which funds are available and NCUA has called for applications. NCUA will reject any application submitted during a period in which NCUA has not called for applications, except for applications submitted under ?705.8. Such rejections are not subject to appeal or review by the NCUA Board. Appeals of technical assistance grant reimbursement denials: Pursuant to NCUA Interpretative Ruling and Policy Statement 11-1, any Participating Credit Union may appeal a denial of a technical assistance grant reimbursement to NCUA's Supervisory Review Committee. All appeals of technical assistance grant reimbursements must be submitted to the Supervisory Review Committee within 30 days from the date of the denial. The decisions of the Supervisory Review Committee are final and may not be appealed to the NCUA Board. Grant Extensions If a grant award has not been used prior to the grant expiration date then credit unions may submit a request to extend the grant's performance period by emailing a completed grant extension request form to the NCUA. Extensions may be authorized for a maximum of 18 months only (within 18 months after the original grant expiration date). The NCUA will approve or reject the grant extension request and notify the credit union by email. Renewals are not available for CDRLF awards. The selection process for CDRLF grants include the following steps. 1. Eligibility and Completeness Review The NCUA will review each application to determine whether it is complete and that the Applicant meets the eligibility requirements described in the regulations, the grant round guidelines, and in this NOFO. An incomplete application or one that does not meet the eligibility requirements will be declined without further consideration. 2. Evaluation Criteria Each funding initiative, due to its structure and impact, may have varying degrees of evaluation criteria assigned. The evaluation criteria for each funding initiative is fully described in the grant round guidelines. 3. Application Review The purpose of the application review is to determine whether an application satisfies the criteria set forth for each particular funding initiative. The NCUA will evaluate each application in accordance with the criteria and procedures described in the grant round guidelines. The NCUA reserves the right to contact the Applicant during its review for the purpose of clarifying or confirming information contained in the application. If so contacted, the Applicant must respond within the time specified by the NCUA or the NCUA, in its sole discretion, may decline the application without further consideration. 4. Scoring and Funding Decision The NCUA will make its funding decision based on a scoring system that establishes a ranking position for each application. The applications will be ranked according to the scoring criteria set forth for each funding initiative in the grant round guidelines. The selection process for CDRLF loans includes the following steps. 1. Eligibility and Completeness Review The NCUA will review each application to determine whether it is complete and that the Applicant meets the eligibility requirements described in the regulations, program guidelines, and in this NOFO. An incomplete application or one that does not meet the eligibility requirements will be declined without further consideration. 2. Evaluation Criteria The evaluation criteria is fully described in 12 CFR ? 705.7(c). The NCUA will evaluate each application on accordance with the criteria described in the regulation, this NOFO and program guidelines: financial performance, compatibility, feasibility, and examination information and applicable concurrence. Each initiative, due to its structure and impact, have varying degrees of evaluation criteria assigned which are reflected in the guidelines for credit union's information. 3. Application Review The purpose of the application review is to determine whether the NCUA should support and fund the loan request. During this phase of the review, the NCUA reviews the credit union's prior financial and operational performance, the collateral offered to securitize the loan (if applicable), and its longevity in operation. The NCUA reserves the right to contact the Applicant during its review for the purpose of clarifying or confirming information contained in the application. If so contacted, the Applicant must respond within the time specified by the NCUA or the NCUA, in its sole discretion, may decline the application without further consideration. 4. Examination Information and Applicable Concurrence The NCUA will not approve an award to a credit union for which it's NCUA regional examining office or SSA, if applicable, indicates it has safety and soundness concerns. If the NCUA regional office or SSA identifies a safety and soundness concern, the NCUA, in conjunction with the regional office or SSA, will assess whether the condition of the Applicant is adequate to undertake the activities for which funding is requested, and the obligations of the loan and its conditions. The NCUA, in its sole discretion, may defer decision on funding an application until the credit union's safety and soundness conditions improve. 5. Funding Selection The NCUA will make its funding selections based on a consistent scoring tier for each Applicant. The NCUA will consider the impact of the funding. In addition, the NCUA may consider the geographic diversity of the Applicants in its funding decisions. In order to meet the objectives of the CDRLF , an applicant must be certified as a low-income credit union, and provide a variety of financial and related services designed to meet the particular needs of the low-income community they serve. Federal grants and loans under the program may generally be used for services that include 1) Provide basic financial and related services to its members and their communities; 2) Enhancing their capacity to better serve their members and the communities in which they operate; 3) Responding to emergencies. Performance Reports: For CDRLF loans the reporting requirements are more fully described in 12 CFR § 705.9. Annually, each Participating Credit Union will submit a report to the NCUA. The report will address the Participating Credit Union’s use of the loan funds; the impact of funding; and explanation of any failure to meet objectives for use of proceeds, outcome, or impact. The NCUA, in its sole discretion, may modify these requirements. However, such reporting requirements will be modified only after notice to affected credit unions. Applicable credit unions will be notified regarding the submission of the report form. A Participating Credit Union is responsible for timely and complete submission of the report. The NCUA will use such information to monitor each Participating Credit Union’s compliance with the requirements of its loan agreement and to assess the impact of the CDRLF loan. Not applicable. CDRLF awardees are required to keep all financial, business and program reports necessary for program review and audit to ensure that funds have been expended in accordance with the applicable regulations, guidelines, agreements, and terms & conditions. Statutory Formula: Title 12: Banks and Banking Chapter VII Part 705 Subpart A

Matching is voluntary. At its discretion, the NCUA may require the Applicant to submit a functional plan to meet the matching funds requirement depending on the financial condition of the Applicant. The NCUA anticipates that most Applicants will not be required to obtain matching funds. 12 CFR § 705.5(g) of the NCUA’s regulations describe the overall requirements for matching funds. Matching Funds Requirements: The specific terms and covenants pertaining to any matching funds requirement will be provided in the loan agreement of the Participating Credit Union. Following, are general matching fund requirements. The NCUA, in its sole discretion, may amend these requirements depending upon its evaluation of the Applicant, but in no case will the amended requirements be greater than the conditions listed below. a. The amount of matching funds required must generally be in an amount equal to the loan amount. b.Matching funds must be from non-governmental member or nonmember share deposits. c.Any loan monies matched by nonmember share deposits are not subject to the 20% limitation on nonmember deposits defined in 12 CFR § 701.32. d.Participating Credit Unions must maintain the outstanding loan amount in the total amount of share deposits for the duration of the loan. Once the loan is repaid, nonmember share deposits accepted to meet the matching requirement are subject to requirements defined in defined in 12 CFR § 701.32. Criteria for Matching Funds: The NCUA will use the following criteria to determine whether to require an Applicant to have matching funds as a condition of its loan. a. CAMEL Composite Rating b. CAMEL Management Rating c. CAMEL Asset Quality Rating d. Regional Director Concurrence e. Net Worth Ratio Documentation of Matching Funds: The NCUA may contact the matching funds source to discuss the matching funds and the documentation that the Applicant has provided. If the NCUA determines that any portion of the Applicant’s matching funds is ineligible under this NOFO, the NCUA, in its sole discretion, may permit the Applicant to offer alternative matching funds as a substitute for the ineligible matching funds. In this case, the Applicant must provide acceptable alternative matching funds documentation within 10 business days of the NCUA’s request.

MOE requirements are not applicable to this assistance listing. Technical Assistance Grants Credit unions approved for grant funds must utilize the funds and submit a reimbursement request by the grant expiration date provided at the time of approval (approval letter). Grant expiration dates range from 12 to 36 months. A grant extension may be permitted upon written request, for up to 12 months from the original date of expiration. CDRLF grant awards are reimbursements and disbursed as a lump sum when the credit unions reimbursement request is reviewed and approved. Loans Financial assistance made available in this program will be in the form of a loan which is to be deposited in the credit union as either a non-member deposit or as a note payable and must be repaid to the Revolving Loan Program at the specified rate at the time of the loan (refer to the NCUA's CDRLF Loan Interest Rate Policy for current rate). The term of a loan will not exceed 5 years from the date of award of the loan. CDRLF loans are disbursed as a lump sum on the effective date of the note. Method of awarding/releasing assistance: Lump. None/Not specified. Joshua Krantz
1775 Duke Street
ALexandria, VA 22304 USA
jkrantz@ncua.gov
Phone: (703)220-9487

Geetha Valiyil
1775 Duke Street
Alexandria, VA 22314 USA
gvaliyil@ncua.gov
Phone: (571) 289-1918 https://www.ncua.gov/support-services/credit-union-resources-expansion/grants-loans 25-4472-0-3-373 (Project Grants (Special)) FY 19$2,000,000.00; FY 20 est $1,500,000.00; FY 21 est $1,500,000.00; FY 18$2,000,000.00; FY 17$2,389,085.00; FY 16$2,499,187.00; - (Direct Loans) FY 19$1,000,000.00; FY 20 est $2,000,000.00; FY 21 est $2,000,000.00; FY 18$1,500,000.00; FY 17$500,000.00; FY 16$1,375,000.00; - This portion reflects the loans issued as part of the CDRLF Program. Loan amounts range from $10,000 to $500,000. There are no new congressional appropriations awarded to this revolving loan fund since 2005. This is a revolving fund (X fund). Smallest FY18 grant award - $1,300 Largest FY18 grant award - $20,000 Average FY18 grant award - $9,852 Smallest FY19 grant award - $1,900 Largest FY19 grant award - $100,000 Average FY19 grant award - $11,655 Regulations: 12 CFR Part 705, 12 CFR 701.34, and 2 CFR Part 200. CDRLF Program Materials: All CDRLF program materials are available on the NCUA's website. The URL address for these materials is below. URL Address: https://www.ncua.gov/support-services/credit-union-resources-expansion/grants-loans Fiscal Year 2016 Capacity & Growth The Capacity and Growth initiative helped credit unions establish new financial service relationships with their members. Grant funds were used to improve outreach efforts through the implementation of new deposit and lending products, enhance digital service channels, and explore other strategies for growth. Cybersecurity The cybersecurity initiative strengthened credit union technology systems against potential threats and vulnerabilities to confidential member information. Credit unions were able to enhance their security posture by investing in data encryption technology, biometric and multi-factor authentication systems and risk assessments for their IT systems. Staff and Volunteer Training As the credit union system evolves, credit unions must be diligent in obtaining the required training for management, staff, and volunteers. This initiative provided funds for low-income credit unions to offset the cost of training relevant to improving credit union operations and staff performance. Credit unions used grant funds to attend credit union management schools, attend credit union course trainings, purchase online training libraries, and participate in webinars. NCUA encouraged credit unions to attend training for compliance, lending and collections and financial counseling for front-line staff. Student Internships Student internship grant funds allowed credit unions to introduce students to the credit union system. Interns gained meaningful hands-on experience by assisting small credit unions in areas where, many times, there was a gap in staff expertise. Interns assisted credit unions in developing new marketing strategies including social media and web development, as well as providing insight to the younger demographics’ product and service needs. Through this initiative, students are better equipped to transition into a career in the financial services industry.
Fiscal Year 2017 Each credit union may apply for funding under one of three initiatives: • Leadership development (maximum grant $10,000)—Credit unions may use this grant to promote career development, management succession planning, diversity and inclusion training, or structuring essential employment positions. • Digital services and security (maximum grant $7,500)—Credit unions can improve digital member services as well as cybersecurity and fraud prevention under this initiative. This grant can be used to offer services like remote deposit capture, digital payments and wallets, or mobile loan applications or to provide cybersecurity training or digital encryption. • Small, low-income credit union capacity (maximum grant $7,500)—Credit unions with assets of less than $30 million may apply for funding under this initiative to address operational challenges such as upgrading technology systems for greater efficiency and improved operations. Applicants must fall under the $30 million asset limit. In addition to those initiatives, each credit union may apply for a grant of up to $25,000 to support projects designed to reach people living in underserved communities.
Fiscal Year 2018 Expansion of financial access to underserved communities through digital products. Protecting credit union information from cybersecurity threats. Promote professional development in the credit union industry. Prepare credit unions for success in the event of leadership transition. Enhance the operational and leadership skills of credit union staff and board members. Developing innovative outreach strategies that will improve the financial well-being of individuals living in underserved areas.
Fiscal Year 2019 Assisting credit unions in improving the financial well-being of individuals in underserved areas. Supporting development of digital tools for member outreach programs. Providing support for credit union staff seeking certification in financial education. Helping credit unions develop staff talents and skills. Encouraging strong and experienced credit unions to provide guidance to small minority depository institution (MDI) designated credit unions to increase their ability to thrive and serve low-income and underserved populations.
Fiscal Year 2020 | Technical Assistance Grants | COVID-19 Emergency Support: The COVID-19 Emergency Support initiative is intended to help credit unions assist members experiencing economic hardships due to the coronavirus, particularly members that are most impacted by the situation. Funds may be used to address the financial needs of impacted members, to help credit unions respond to the unexpected and unforeseen challenges of COVID-19, and to alleviate the impact of the crisis on the credit union and its community. Due to the severity of the situation, the NCUA may relax some of the administrative and programmatic requirements for Applicants under this initiative. Digital Services and Cybersecurity: The Digital Services and Cybersecurity initiative helps credit unions implement the infrastructure to build a digital relationship with their members and safeguard credit union information from cybersecurity threats. Access to digital financial services will improve the ability of credit unions to serve their communities. It is crucial for credit unions to expand financial products and services for members through digital channels. Ensuring that the appropriate processes are in place to continually safeguard the credit union’s digital assets and activities is equally important. The objective of this initiative is to help credit unions establish a new digital service or strengthen cybersecurity in order to benefit the members. This initiative is not intended to fund continuous projects or cover costs associated with normal maintenance of digital services or cybersecurity. Training: The Training initiative focuses on helping credit unions develop the skills and talents of employees through specialized management programs and advanced training courses. The goal of this initiative is to enhance the operational knowledge of credit union employees and support staff professional development. Underserved Outreach: The Underserved Outreach initiative is designed to help credit unions implement innovative outreach strategies that will improve the financial well-being of individuals living in underserved areas within a credit union’s field of membership. This initiative focuses on providing quality financial products and services to underserved population segments such as minority groups, youth & millennials, veterans, and immigrants. The NCUA’s priority areas for 2020 Underserved Outreach grants will allow credit unions to fund projects that benefit individuals returning to the community following incarceration, promote first-time homeownership, and improve the access of financial products and services to people with disabilities. The goal of this initiative is for credit unions to employ outreach strategies that produce positive growth outcomes for the credit union and improve the financial health of individuals. Minority Depository Institution (MDI) Mentoring: The MDI Mentoring initiative is intended to encourage mentoring relationships between LICUs (mentors) and small LICU MDIs (mentees). This initiative was designed to encourage strong and experienced low-income designated credit unions to provide guidance to small low-income designated MDI credit unions to increase their ability to thrive and serve low-income and underserved populations. No more than five awards are expected to be made under this NOFO. | Loans | Development of new products or services for members, including new or expanded share draft or credit card programs; Partnership arrangements with community-based service organizations or government agencies; Loan programs, including, but not limited to, microbusiness loans, payday loan alternatives, education loans, and real estate loans; Acquisition, expansion, or improvement of office space or equipment, including branch facilities, ATMs, and electronic banking facilities; Operational programs such as security and disaster recovery; and Responding to emergencies such as pandemics, natural disasters, economic downturns, etc. The NCUA recognizes that these emergencies will impact the credit union industry to varying degrees. The NCUA intends to support the efforts of LICUs through emergency funding needed to respond to unexpected and unplanned events. Specific details will be defined and provided in the applicable guidelines and posted on NCUA’s website.
Fiscal Year 2021 Digital Services and Cybersecurity: The Digital Services and Cybersecurity initiative provides financial assistance to credit unions to modernize, innovate, and protect credit unions and members against cyberattack. The goal of the initiative is to increase the access of safe, secure digital financial products and services to low-income and underserved communities. The NCUA also encourages credit union to apply for this initiative to help the credit union meet the challenges created by the COVID-19 pandemic. Applicants can request funding for equipment needed to improve their remote work posture or implement new financial products and services which provide members access to the credit union without physical access to the branch. Applicants can select up to three of the eligible projects below: a. Implementation of Mobile/Online Banking Features; b. Remote Workforce Management and Solutions; and/or c. Strengthen Cybersecurity. MDI Mentoring: The purpose of the MDI Mentoring initiative is to encourage strong and experienced credit unions to provide guidance to small MDI credit unions to increase their ability to thrive and serve low-income and underserved populations. This grant may be used for eligible expenses associated with facilitating a new mentorship relationship. Funding approval will be based on the applicant’s ability to demonstrate a well-developed plan for the mentoring assistance it would receive from a mentor credit union. Applicants are expected to meet the objectives of this initiative by establishing a mentorship to accomplish the following objectives: a. Credit union growth and expansion, such as growing the membership or the loan portfolio; b. Improved management and operations, such as leadership training, developing new policy and procedure documents, or responding to exam or audit findings; c. Increased credit union capabilities, such as introducing a new program or service or improving credit union systems; and/or d. Other (applicants will have opportunity to justify additional projects). Underserved Outreach: The Underserved Outreach initiative is designed to help credit unions implement innovative outreach strategies to increase access to financial products and services in underserved communities. The goal of this initiative is for credit unions to improve the financial health of individuals in underserved communities by closing the wealth gap, increasing equity, and expanding economic inclusion. Applicants are expected to address the challenges faced by underserved communities by offering financial products, services and programs through the following projects: a. New or expanded outreach efforts, such as developing partnerships with other organizations to assist the needs of low wealth persons and households; b. New or expanded financial education programs, such as providing small business or workforce training for minorities interested in starting and growing a business; or c. New or expanded financial products or services, such as developing and implementing a new product or program tailored to underserved and minority groups, like a first-time homeowner program.