MAY 2012
NUMBER 5
WWW.NCUA.GOV
HIGHLIGHTS
2 Chairman’s Corner
NCUA Will Listen
to Your Appeals
LOW-INCOME CREDIT UNIONS
CAN ACCESS NEW MONEY
Apply Now for a Free Grant or a Loan
with a Record Low Rate
3 Get Ready: CU Online
Upgrade Starts May 28
NCUA Kicks off
Nationwide Listening
Sessions
4 Board Perspectives
Hunger and Youth
What’s in a Number?
5 New Flexibility in
Loan Originator
Compensation Rules
6 Interest Rate Risk
Management
8 Earth Day is a Year-Round
Affair at NCUA
CDRLF Grants in Action
9 Moderate Pace of
Recovery Continues
during the First Quarter
of 2012
10 Pocket Cents:
A New Youth Website
NCUA is opening new opportunities for low-income credit unions (LICUs) through the
Community Development Revolving Loan
Fund (CDRLF). Administered by NCUA’s
Office of Small Credit Union Initiatives, the
CDRLF provides reduced-rate loans and
technical assistance grants enabling LICUs to
provide basic financial services and stimulate
economic activities in their communities.
“Another opportunity for credit unions to
excel starts this month with NCUA opening
up the CDRLF for loan and grant
applications in 2012,” said NCUA Board
Chairman Debbie Matz. “This year, we are
making $1.3 million available for grants and
$11 million for lending. We have also
recently made it much, much easier to get
these free grants and low-interest loans. I
strongly encourage qualifying credit unions
to apply, obtain funds, and undertake
worthwhile projects.”
NCUA begins accepting 2012 CDRLF grant
and loan applications May 22. Grants go up
to $25,000 with an application deadline of
June 29. NCUA will accept LICU loan
applications through the rest of 2012 or
when funds are exhausted. Generally,
CDRLF provides loans up to $300,000, but
a new rule adopted by the NCUA Board last
year allows loans beyond that amount on a
case-by-case basis.
The modified rule also allows greater
flexibility in setting interest rates that can
fall below 1 percent. For 2012, NCUA has
set the interest rate for loans at a record low
of 0.4 percent. Loans have a five-year
maturity and are structured with principal
due at maturity.
Grants Available for Specified
Needs
To make it easier for LICUs to access CDRLF
grants, NCUA has adopted new procedures.
The most significant changes include:
;A fully automated, online funding
application;
;A single application for all funding
initiatives; and
;The ability to bundle reimbursement
requests for multiple initiatives.
As part of the 2012 CDRLF funding round,
NCUA has also prioritized grants for:
;Financial Literacy and Education in
School Branches
CONTINUED ON PAGE 7
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