The National Credit Union Administration (NCUA) has announced it will commit additional funding to provide credit unions and their members with COVID-19 assistance.

Originally, the NCUA announced on March 31 it would commit $800,000 for grants to eligible low-income credit unions to help combat the current economic state. However, earlier today the NCUA increased that amount to more than $1.3 million.

Grant Limits and Usage

The grants will have a maximum award of $10,000 and will be awarded on a rolling basis until May 22, 2020. Minority depository institutions and credit unions with less than $100 million in assets will receive priority.

Grant awards may be used to:

  • Offer rental, mortgage and utility payment assistance to members, such as entrepreneurs, small business owners, and hospitality and service industry employees
  • Offer loan payment relief to affected members
  • Develop a new product or service for affected members, such as offering preloaded cards
  • Cover costs associated with moving credit union operations to remote locations, such as laptops, software and short-term rentals

How to Apply

Eligible credit unions should apply by using the NCUA’s CyberGrants portal before May 22, 2020. We recommend credit unions apply as soon as possible as the grant awards will be made on a first-come, first-serve basis until the funds are fully exhausted.

Doeren Mayhew’s Financial Institutions Group stands ready to help you navigate the nuances of new financial, operational and compliance guidance as a result of the COVID-19 pandemic. Contact us with any questions.