Jan. 29, 2013 – NCUA is making $9.5 million in loans available this year to low-income-designate credit unions through the Community Development Revolving Loan, the agency announced.
The CDRLF, operated by the NCUA Office of Small Credit Union Initiatives, will make five-year loans of up to $300,000, but NCUA says they may exceed that amount on a case-by-case basis. The fund will provide loans at an interest rate of 0.4 percent this year, a record-low rate that is unchanged from 2012. Loans are made on a rolling basis.
Eligible credit unions have used loans under this program for several purposes, including:
- funding loan demand;
- providing liquidity for expansion; and
- increasing net income through earnings on the loan funds.
To obtain a loan, a federally insured credit union must have NCUA’s low-income designation. NCUA said it will accept loan applications through the rest of the year or until funds are exhausted. (Learn more.)
William Myers, director of OSCUI, said the loans can be used for a wide array of purposes. “For example, credit unions can use these funds to improve member services and have a greater impact in their communities,” he said.
OSCUI fosters credit union development and the effective delivery of financial services for small credit unions, new credit unions and credit unions with a low-income designation.