NCUA: CDRLF Funds have positive impact on communities, credit unions
NCUA chairman Harper urges congress to increase appropriations
ALEXANDRIA, VA (June 2, 2021) — The National Credit Union Administration today released its Community Development Revolving Loan Fund report to Congress, highlighting the fund’s significant, positive impact on low-income credit unions, their members, and communities across the country. NCUA Chairman Todd M. Harper also requested that Congress consider increasing the fund’s appropriations in 2022.
“Since its creation, the Community Development Revolving Loan Fund has been an efficient and effective program for targeting public resources to do public good,” Chairman Harper said. “Because demand regularly exceeds the amount of available funds for these grants, and because low-income credit unions are more likely to serve communities disproportionately impacted by COVID-19, I urge Congress to increase appropriations for CDRLF grants in 2022. With more funding, the agency could increase the number of credit unions receiving grants and increase the size of the grants it makes, deepening the program’s impact in underserved communities.”
The CDRLF Annual Report to Congress(opens new window) details the program’s performance and its significant accomplishments in 2020. A complete list of grant and loan awardees and a breakdown of awardees and funding by state is also included in the report.
In 2020, the NCUA devoted nearly all its CDRLF efforts to help credit unions and their members meet the significant challenges posed by the COVID-19 pandemic. Overall, the NCUA received 432 technical assistance grant and loan requests for a total of $7.6 million. The agency’s funding capacity allowed it to only award $3.7 million in technical assistance grants and loans to 165 credit unions. Additionally, the NCUA awarded 149 credit unions in 42 states and the District of Columbia more than $968,000 in urgent need grants.
Congress created the CDRLF to stimulate economic development in low-income communities served by credit unions. Through its stewardship of the fund, the NCUA provides grants and loans to low-income-designated credit unions that use this funding to improve and expand services to members, build capacity, and stimulate local economic activity. Although relatively small in size, these grants make a big difference to low-income and minority credit unions working to provide more and better services to their members and communities.
The NCUA does not use appropriated funds to administer the CDRLF. Every penny of appropriations goes to eligible credit unions and their member-owners.
Additional information on the Community Development Revolving Loan Fund can be found at https://www.ncua.gov/support-services/credit-union-resources-expansion/grants-loans.
About National Credit Union Administration (NCUA)
The NCUA is the independent federal agency created by the U.S. Congress to regulate, charter and supervise federal credit unions. With the backing of the full faith and credit of the United States, the NCUA operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of more than 135 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions. The NCUA also protects consumers and educates the public on consumer protection and financial literacy issues.
