Community Development Revolving Loan Fund Program for Credit Unions

The purpose of the Community Development Revolving Loan Fund (CDRLF) is to expand access of financial products and services, and increase diversity, equity, and economic inclusion to underserved communities. Through the CDRLF, the NCUA provides financial support in the form of loans and technical assistance grants to low-income designated credit unions (LICUs) serving predominantly low-income members to modernize, build capacity, extend outreach into underserved communities, and respond to emergencies.

This NOFO is open to credit unions that meet the eligibility requirements defined in 12 C.F.R. part705. A credit union must be, or has agreed to be, examined by NCUA and meets the definition of low-income designation in order to participate in the CDRLF. Non-Federally Insured Applicants: Each Applicant that is a non-federally insured, state-chartered credit union must submit additional application materials. These additional materials are more fully described in 12 C.F.R. § 705.7(b)(3) and in the application. Non-federally insured, state-chartered credit unions must agree to be examined by the NCUA. The specific terms and covenants pertaining to this condition will be provided in the award agreement of the Participating Credit Union.

A credit union wishing to participate must serve a field of membership which is comprised primarily of low-income individuals. To participate in the CDRLF, a federally chartered credit union must be currently designated as a “low-income” credit union as set forth in NCUA’s Rules and Regulations . A state-chartered credit union must have the equivalent low-income designation from its respective state supervisory authority and concurrence from NCUA. 12 CFR 701.34. A low-income designated credit union is one in which more than half of its members meet the NCUA definition for a “low-income member.” Low-income members are those who earn 80 percent or less than the median family income for the metropolitan area where they live, or the national metropolitan area, whichever is greater. Low-income designated credit unions have offices and serve members throughout the United States, Puerto Rico, Guam, and the U.S. Virgin Islands, and on military bases around the world. Depending on the charter type, these credit unions serve occupational groups, associations and communities.

The selection process for CDRLF grants and loans includes the following steps. (1) Eligibility and Completeness Review. 2. Applications are reviewed based on project object, project budget, and previous program compliance. The evaluation criteria for each funding initiative is fully described in the applicable program guidelines. 4. The NCUA will not approve an award to a credit union for which it’s NCUA regional examining office or SSA, if applicable, indicates it has safety and soundness concerns. 5. The NCUA may consider other factors set forth in program regulations, NOFO and application materials in its funding decisions.

Process for Loans:

(1) Credit unions fulfill all application responses and requirements for the loan and submit the request online. (2) NCUA will thoroughly review the application according the criteria established in NCUA Rules and Regulations 12 CFR 705.7(c). (3) NCUA will make a decision and notify the credit union whether the request is tentatively approved or denied via email. (4) If the request is tentatively approved, NCUA will provide credit unions with instructions to complete the necessary loan documentation. (5) Credit unions review, sign, and submit the required loan documentation including, but not limited to, a loan agreement, promissory note, and amortization schedule. (6) NCUA will review and sign the loan documentation, then notify the credit union of the final approval via email. (7) NCUA will provide the credit union with copies of the signed loan documentation. (8) NCUA deposits the funds into the credit union’s account on the effective date of the loan.

The award procedure generally involves two or three steps of review by different staff. The final approval authority is completed by the Director (or designee) of the NCUA's Office of Credit Union Resources and Expansion.

Three Step Review Process: The Initial Reviewer (IR) evaluates the request and determines if it satisfies the criteria for approval set forth in program guidelines. Then the Grant Administrator (GA) reviews the IR’s recommendation to either confirm the recommendation or make another recommendation. Lastly, the Office Director or Deputy Director (OD) reviews the GA’s recommendation to either confirm or deny the GA’s recommendation, which results in a official final decision.

Two Step Review Process: This process follows the same protocols as the Three Step Review Process. However, the GA initiates the evaluation of the request and determines if it satisfies the criteria for approval set forth in program guidelines. Then, the OD reviews the GA’s recommendation to either confirm or deny the GA’s recommendation, which results in a official final decision. The difference in this step is that the GA bypasses the IR’s step during this process and is used for faster response on more simplified applications.

From 60 to 90 days. The NCUA will notify each Applicant of its funding decision by email. In addition, the NCUA may announce the successful applications through a press release that includes a list of the Awardees.