National Credit Union Administration (NCUA) officials are espousing the benefits of the Community Development Revolving Loan Fund (CDRLF), noting its positive impact on low-income credit unions, members, and communities nationwide.
In its report to Congress, NCUA requested lawmakers consider increasing the fund’s 2022 appropriations.
“Since its creation, the Community Development Revolving Loan Fund has been an efficient and effective program for targeting public resources to do public good,” NCUA Chairman Todd M. 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.”
Harper indicated more funding would allow the agency to increase the number of credit unions receiving grants while increasing the size of the grants it makes, thereby deepening the program’s impact in underserved communities.
Last year the NCUA devoted nearly all its CDRLF resources to aid credit unions and members meet the varied COVID-19 pandemic challenges. Overall, the NCUA received 432 technical assistance grant and loan requests for a total of $7.6 million.
The agency was limited to awarding $3.7 million in technical assistance grants and loans to 165 credit unions, per the NCUA report. In addition, the agency awarded 149 credit unions in 42 states and the District of Columbia more than $968,000 in urgent need grants.