Community Development Revolving Loan Fund Program for Credit Unions

To support low-income credit unions in their efforts to: (1) Stimulate economic development activities which result in increased income, ownership, and employment opportunities for low-income residents; and (2) provide basic financial and related services to residents of their communities.

Agency - National Credit Union Administration

Website Address

Program Accomplishments

$2.9 million in new loans were made in fiscal year 2006.

Uses and Use Restrictions

In order to meet the objectives of the Community Development Revolving Loan Program for Credit Unions, an applicant low-income credit union approved for participation must provide a variety of financial and related services designed to meet the particular needs of the low-income community served.

Federal funds loaned under the Revolving Loan Program may be used for services that include activities aimed towards: (1) Supporting and stimulating economic development and revitalization efforts aimed at benefiting the community it serves.

Recipients are encouraged to use funds available through the Revolving Loan Program to serve as a catalyst to attract and stimulate the investment of capital from other private and public sources to promote economic development activities within the community; (2) providing member services such as financial counseling; and (3) increasing the membership and the capitalization base such as: (a) membership drives; (b) campaigns to encourage members to increase their share deposits through systematic savings, utilizing such methods as payroll deductions allotments; and (c) businesses and other organizations serving the community to maintain share deposits or contribute financially in other ways to projects supported by the credit union.

Loans up to $300,000, will be made to credit unions.

All loans must be repaid to the Community Development Revolving Loan Fund for Credit Unions within the shortest time compatible with sound business practice and with the objectives of the program, but in no case will the term exceed 5 years.

Loans made under this program shall bear interest at a rate of not less than 1 or greater than 3 percent per annum.

Semi- annual interest and principal payments are required by the Revolving Loan Program.

Eligibility Requirements

Applicant Eligibility

All State and federally chartered credit unions with a low-income designation are eligible.

This program is for established, financially sound low-income credit unions that wish to increase member services in their communities.

Credit unions in the territories and the possessions are eligible to apply.

Beneficiary Eligibility

A credit union wishing to participate must serve a field of membership which is comprised primarily of low- income individuals. The credit union's field of membership should correspond geographically to the designated program area described in its application and may include employees who regularly work in the area, businesses located within the area, and the residents of the area. In particular cases, the community served may include a number of contiguous neighborhoods constituting a target area. A target area is defined as that area designated by the Economic Development Administration or another Federal agency or by a State or local government agency for special assistance to low-income residents such as special impact areas or enterprise zones.


The Community Development Revolving Loan Fund Program for Credit Unions requires low-income credit unions to provide evidence of chartering from the appropriate Regional Office of the National Credit Union Administration or a State credit union regulatory agency. The board of directors will prepare a Community Needs Plan (Plan) and submit it with its loan application. The Plan will contain a list of needed community services that the credit union will provide. The board of directors will provide a status report on the Plan's objectives to the credit union members once a year either at the annual meeting or in a written report sent to all members. The Plan's yearly status report will also be submitted to NCUA annually. This Program is excluded from coverage under OMB Circular No. A-87.

Aplication and Award Process

Preapplication Coordination


This program is excluded from coverage under E.O.


Application Procedures

Applications for loans competitively awarded in response to a program announcement are to be addressed to: National Credit Union Administration, Community Development Revolving Loan Program for Credit Unions, 1775 Duke Street, Alexandria, VA 22314- 3428. Applicants are urged to inform and to coordinate with State and local governments where such information and coordination is appropriate or necessary for the success of the program. This Program is excluded from coverage under OMB Circular No. A-102.

Award Procedures

NCUA will notify applicant credit unions as to whether they have qualified for a loan under the Revolving Loan Program.


Notices of availability of funds will be published in the Federal Register.


Omnibus Budget Reconciliation Act of 1981, as amended, Sections 623, 633, and 681, Public Law 97-35, 95 Stat. 494, 498 and 518, 42 U.S.C. 9812, 9822 and 9910; Public Law 98-63, 97 Stat. 331; Public Laws 99-609, 101-144, 103-325, and 109-115.

Range of Approval/Disapproval Time

From 30 to 90 days.


Any applicant whose qualification is denied may appeal that decision to the NCUA Board.


Not applicable.

Assistance Considerations

Formula and Matching Requirements

The Revolving Loan Program has no statutory formula. Loans made available under the program must be matched by the participating credit union. Any loan monies matched by member share deposits will be credited as a two-for-one match. Non- member deposits are a dollar-for-dollar match.

Length and Time Phasing of Assistance

Financial assistance made available in this program will be in the form of a loan which is to be deposited in the credit union as either a non-member deposit or as a note payable and must be repaid to the Revolving Loan Program at a rate of not less than 1 or greater than 3 percent per annum. The term of the loans will not exceed 5 years from the date of award of the loan. Funds will be released directly to the credit union by NCUA, Community Development Revolving Loan Program for Credit Unions.

Post Assistance Requirements


Loan recipients must submit a copy of the Credit Union's Community Needs Plan with their application, annual audit report of the Supervisory Committee, quarterly, semi-annual or other financial, business or program reports as required by NCUA and a final report summarizing the activities and accomplishments of the project in relation to the approved goals and objectives.


The recipient credit union must submit to NCUA annually the Supervisory Committee's audit report and the annual State or Federal examiner's report within 30 days of issuance.


Loan recipients are required to keep all financial, business and program reports necessary for program review and audit to ensure that funds have been expended in accordance with the regulations, loan agreement and terms and conditions of the Revolving Loan Program.

Financial Information

Account Identification



FY 07 $7,300,000; FY 08 est $2,500,000; and FY 09 est not reported.

Range and Average of Financial Assistance

From $5,000 to $300,000.

Regulations, Guidelines, and Literature

CDRL Program, Federal Register, Volume 52 No. 179, September 16, 1987 (12 CFR 705) and Volume 54 No. 240, December 15, 1989.

Information Contacts

Regional or Local Office

Not applicable.

Headquarters Office

Tawana James, Community Development Revolving Loan Fund Program for Credit Unions, National Credit Union Administration, 1775 Duke Street, Alexandria, VA 22314-3428. Telephone: (703) 518-6610.

Criteria for Selecting Proposals

The Community Development Revolving Loan Fund Program will use the following to base its consideration for awards on the following priorities: (1) Purpose; (2) Financial Factors and (3) Non-Financial Factors as listed in the application for funds.

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