Community Development Revolving Loan Fund Technical Assistance Program

DEAR BOARD OF DIRECTORS:

In 1986, Congress assigned responsibility for the Community Development Revolving Loan Fund (CDRLF) program to the National Credit Union Administration. The loan program provides opportunities for low-interest loans to credit unions designated lowincome to assist these institutions in furthering their outreach to the communities they serve.

A component of the CDRLF provided by the NCUA Board is a technical assistance grant program. The purpose of technical assistance is to aid low-income designated credit unions in providing services to their members and in improving the efficiency of their operations. The funds available for technical assistance are derived from the interest income generated from the outstanding CDRLF loans and investments. Earnings in 2001 are anticipated to be $226,000. In 2001, Congress also appropriated $350,000 to the CDRLF specifically for technical assistance.

Because of the limited funding available, as well as the large number of potential applicants, technical assistance grants will generally not exceed $5,000. To ensure the appropriate allocation of technical assistance grants, the agency has developed procedures for reviewing requests from low-income designated credit unions, which are attached for your information and review.

All low-income designated credit unions are encouraged to utilize this program to further improve credit union efficiencies and to better serve their fields of membership. Your local regional office and the Office of Credit Union Development can provide information on how to qualify for low-income status and the Community Development Revolving Loan Fund program. Additional information on serving the underserved, as well as the application for technical assistance, can be found on our Internet site, http://www.ncua.gov/.