NCUA Loans Available to Low-Income Designated Credit Unions
The National Credit Union Association (NCUA) is making $9.5 million in loans available to low-income designated credit unions from the Community Development Revolving Loan Fund (CDRLF). These loans are administered by NCUA’s Office of Small Credit Union Initiatives (OSCUI) and meant to assist low-income credit unions in providing services to their members. The loans have been used for funding loan demand, providing liquidity for expansion and increasing net income through earnings on the loan funds. Credit unions must have a low-income designation to apply.
There are other benefits available to low-income credit unions. These include the ability to accept nonmember deposits from any source, secondary capital accounts and the ability to receive assistance from other sources, such as private benefactors and foundations. Low-income credit unions are also automatically exempt from the 12.25% member business loan statutory cap. NCUA periodically notifies credit unions of their eligibility to accept low-income designation status. Low-income credit unions can apple for CDRLF loans here.