Newly Chartered and Urgent Need Grant Guidelines

Community Development Revolving Loan Fund Objective

The Community Development Revolving Loan Fund (CDRLF) provides low-income-designated credit unions with resources to support efforts to provide basic financial services to members — particularly those who are economically disadvantaged — and stimulate economic activity in their communities. NCUA’s Office of Credit Union Resources and Expansion (CURE) administers the CDRLF.

The NCUA makes three grants available year-round:

1. Urgent Need grants for natural disaster relief
2. Other emergency events as determined by the NCUA
3. Grants for operational costs of newly chartered credit unions

These grants are available year-round.

General Eligibility and Administrative Requirements

Applicants must complete the following two steps before registering in the NCUA’s award management system to submit a grant application. Credit unions that do not complete these steps are ineligible to receive CDRLF awards.

Step 1 – Low-Income Designation

Credit unions applying for the CDRLF program must have the low-income designation as per the NCUA’s rules and regulations.¹ For information on how to obtain the low-income designation, visit the dedicated webpage on NCUA.gov.

Step 2 – System for Award Management

A credit union applying for a CDRLF grant must have an active account with the System for Award Management, a web-based, government-wide system that collects, validates, stores, and disseminates business information about the federal government’s trading partners in support of the contract awards, grants, and electronic payment processes. An active system award management (SAM) account status and Unique Entity Identifier number (UEI)—which credit unions receive when they register for a SAM account—are required to apply for a CDRLF grant.

Credit unions must continue to maintain an active registration with current information while they have active federal awards or applications. There is no charge for the SAM registration and recertification process. SAM users can register or recertify their account by following the instructions for registration.

Natural Disaster Relief

The Natural Disaster Relief Initiative assists credit unions responding to sudden, unexpected costs resulting from a natural disaster, which, if left unaddressed, would disrupt member services. The grant covers costs not covered by insurance to restore services, replace equipment, and make repairs.

The project period is six months, beginning on the date of the disaster. Expenses that occurred between the date of the event and the date of the award notification are eligible for reimbursement.

The maximum grant amount is $15,000. The NCUA may alter the maximum award amount to respond to specific events. The agency will publicly announce any variation to the award amount through press releases, social media, and on NCUA.gov.

Examples of eligible disaster relief projects include:

• Repairing damage to the credit union that occurred from a natural disaster and is not covered by insurance.
• Replacing needed equipment to immediately restore services to members resulting from an unexpected event, such as power outages from storms.
• Paying consulting fees for activities related to the credit union’s recovery from a natural disaster.
• Providing financial services to members affected by the disaster, such as a special loan program covering members’ costs of recovering from the event.

Other Eligibility Requirements

Besides meeting the General Eligibility and Administrative Requirements stated above, applicants must demonstrate that the project activities were in response to damage caused by a declared natural disaster, such as a hurricane, tornado, fire, or an unexpected event outside of the credit union’s control, such as flooding due to damage to a public utility. These events must result in the closure of the affected branch or otherwise disrupt services to members. Damage resulting from age, normal wear-and-tear of equipment, or resulting from the neglect of the credit union will not be eligible for Natural Disaster Relief funding.

Initiative-Specific Eligible Expenses

Below are examples of eligible expenses for the Natural Disaster Relief Initiative projects:

• Fees to vendors to repair damage caused by natural disasters.
• Expenses related to providing member services at a different location from the branch which sustained damage.
• Salary expenses to staff providing services to members beyond that of their normal duties, such as working extra hours.

This is not an exhaustive list. Proposed expenses should be included and justified in the project budget. Please submit any specific questions regarding eligibility of expenses to CUREAPPS@NCUA.gov before incurring those costs.

Other Emergency Events

The Other Emergency Events Grant Initiative covers those unexpected costs incurred due to unforeseen events that do not fall under the Natural Disaster Initiative. To ensure flexibility and the ability to respond to a variety of emergencies, the NCUA will issue further guidance on activities and expenses allowed to respond to such emergencies. As with the other urgent need initiatives, credit unions would need to explain the event and its impact on their ability to serve members. The NCUA will consider all emergency events, and these grants are awarded on a case-by-case basis.

Newly Chartered Credit Unions

Grants are available to assist newly chartered credit unions in their first 10 years of operations and have $10 million or less in assets. Eligible credit unions may use the grant to implement financial services and products, train employees, or undertake other activities to aid the credit union to expand and grow.

The project period will be 12 months, beginning from the date of award approval. The maximum grant amount is $15,000. A credit union may receive more than one award under this newly charted initiative during its first 10 years of operation. Under this initiative, a credit union will only receive a subsequent newly chartered grant when their previous newly chartered grant has been successfully completed. Subsequent awards cannot cover the costs of activities for which the credit union has already received funding.

Eligible project examples include:

• Obtaining hardware, software, or other equipment that will help the credit union in implementing financial services and products, particularly those contained in the chartering business plan approved by the NCUA.
• Training for officials and employees who will help implement financial services and products, particularly those contained in the chartering business plan approved by the NCUA.
• Receiving consultant services to develop or help with implementing a strategic, business, succession, or marketing plan.
• Consulting, construction, and materials to improve the operating facility.

Other Eligibility Requirements

Besides the General Eligibility and Administrative Requirements stated previously, applicants must be within their first 10 years of operation and hold no more than $10 million in assets.

Initiative-Specific Eligible Expenses

Below are examples of eligible expenses Newly Chartered Credit Union Initiative projects:

• Equipment and software expenses needed to ensure the availability of credit union services to members.
• Implementation of mobile and online banking features and improvements to the credit union’s cybersecurity.
• Compensation for employees dedicated to the completion of project activities.
• Costs associated with succession planning.
• Fees associated with relevant employee career development courses.

This is not an exhaustive list. Proposed expenses should be included and justified in the project budget. Please submit any specific questions regarding eligibility of expenses to CUREAPPS@NCUA.gov before being incurred.

Application Submission Process

Applicants must provide the following information on the grant application. The NCUA may request other information and materials:

SAM Registration

Enter the 12-character alphanumeric UEI provided by SAM. Click the button to “Check on UEI Value.” If the credit union’s SAM registration is active, you will receive a message stating, “Valid UEI Number” and the credit union may continue with the application.

If the credit union’s SAM registration is inactive, or if the UEI entered is incorrect, the message will state “Invalid UEI Number,” and the credit union will not be able to proceed. See General Eligibility and Administrative Requirements for more information.

Contact Information

A primary and secondary point of contact must be selected. Contact information includes name, phone number, and email address.

The credit union must notify the NCUA by email at CUREAPPS@NCUA.gov if the primary or secondary contact changes at any point during the grant’s performance period and maintain current contact information in the NCUA’s award management system.

Organization Information

This information should pre-populate based on information entered upon the registration of the credit union in the NCUA’s award management system. The credit union must notify the NCUA by email at CUREAPPS@NCUA.gov if any of the below information is inaccurate.

• Credit union name
• Charter number
• Credit union address
• Credit union banking information

Failure to provide accurate organizational information will affect the NCUA’s ability to disburse award funds. The credit union can update information via the IRS Form W-9 and Electronic Fund Transfer Form, which are both available in the NCUA’s award management system.

Grant Project Information

The NCUA requires that applicants provide detailed responses to the following information as well as any further agency requests for information or materials:

• Project Title: Provide a title for the proposed project (limit of 100 characters).
• Request Amount: The amount your credit union is requesting for the grant.

• Project Summary: The applicant must clearly describe the credit union’s needs. The narrative must demonstrate that the proposed project is aligned with the selected urgent-needs initiative (Natural Disaster Relief, Other Emergency Events, Newly Chartered Credit Unions).

  The applicant must provide a clear action plan demonstrating the credit union’s ability to successfully implement the project. The applicant must identify risks associated with the project’s implementation and present mitigation strategies.

  The applicant must demonstrate that the project’s impact aligns with the CDRLF program objectives. Discuss the significance of the credit union’s project and how it will benefit the community it serves, particularly underserved people in that community. Identify and discuss any deliverables that will be produced by the end of the project.

• Date of natural disaster or emergency event (natural disaster relief and other emergency events only): Enter the date of the event to which the project is responding and will serve as the beginning of the performance period.
• Insurance Coverage: Does your credit union's insurance cover any of the costs associated with this request? If so, enter the amount that insurance will cover for costs associated with this request.
• Project Budget: Identify the planned uses of grant funds and outline them in a project budget. See the CDRLF Grant Project Budget Example.
• Supplemental Documentation (Optional): The applicant can submit documents which support the project. The applicant may not use this space to upload additional narrative.

Terms and Conditions

Appendix B contains a complete list of the terms and conditions.

The authorized credit union official must enter their name and title and select the box provided to certify the applicant’s compliance with the terms and conditions.

Submitting the Application

After completing the application and certifying agreement with the terms and conditions, the application data is presented in a read-only format for review. To edit any information, the award management system provides hyperlinks to return the applicant to the relevant application section.

Select “Submit” at the bottom of the page. A confirmation page with the Application ID Number will be provided, along with the responses to the application. This page should be printed for recordkeeping purposes.

The applicant will receive an email confirming the receipt of the application.

CDRLF Grant Project Budget Example

The project budget will be used to determine the final award amount. Any ineligible expenses will result in a reduction of the requested amount. The NCUA may reject in whole or part of an application in which ineligible activities comprise a part of the expenses covered by the CDRLF Urgent Need Program.

The project budget specifies the resources required to carry out the proposed project. Project activities must drive the budget, and the project narrative must be reflected in the budget. The project budget should be clear, well-organized, and easy-to-understand.

The budget narrative is the justification of how and why each line item helps to meet the project goals. Applicants should explain the details and show the calculations used to arrive at the numbers; quotes and proposals from vendors are also acceptable. The budget narrative should validate all expenses as reasonable and appropriate for the project.

The budget narrative should help the NCUA understand the scope of the credit union’s project and address the project budget’s largest expense categories.

The total estimated project cost includes all project-associated costs. This may exceed the award amount and include costs that are covered by the credit union.

The project expense covered by CDRLF grant is the portion of the total estimated project costs that will be covered by the award funds. This may cover all estimated project costs but cannot exceed the requested amount.

Be realistic. Significant overestimating or underestimating suggests the credit union may not understand the scope of the project.

The following is an example for a project budget under the Natural Disaster Relief Initiative. This example is purposely generic. The credit union should choose to elaborate accordingly.

The project budget will be used to determine the final award amount. Any ineligible expenses will result in a reduction of the requested amount. The NCUA has the right to reject an application in which ineligible activities comprise part of the expenses covered by the CDRLF grant.

General Expense Guidelines

All credit unions must adhere to the cost principles in 2 CFR Part 200 Subpart E, Cost Principles, including the following general expense guidelines. All credit unions must adhere to the following general expense guidelines, unless told otherwise by the NCUA in writing:

• Expenses for Natural Disaster Relief and Other Emergency Event projects may be incurred as of the date of the emergency or natural disaster as designated in the grant application.
• Newly chartered credit unions expenses must be incurred after the grant application is approved, unless otherwise approved in writing by the NCUA.
• Expenses incurred after the grant expiration date are ineligible for payment without an approved extension request.
• All expenses must be directly related to the specific approved grant initiative. A credit union may not change the initiative under which the award was made, and any subsequent expenses not related to the approved initiative will be denied.
• Marketing Expense Limitations
  • General marketing expenses for the credit union’s normal operations are not permitted, except for awards made under the Newly Chartered Credit Union Initiative.
  • Marketing expenses are allowable as long as those expenses are directly allocated to the project. For example, a credit union whose branch was closed due to a hurricane can claim marketing expenses for alerting their members and the general public of a temporary location where services can be accessed.
• The applicant must submit project completion documentation in support of project expenses with the reimbursement request.
• The NCUA will only pay for eligible expenses up to the total grant limit for the initiative.
• Applicants should follow NCUA Letter to Credit Unions 01-CU-20, Due Diligence Over Third-Party Service Providers. Third-party vendor agreements submitted must include the services or products provided and the associated costs. Contractor fees that are not substantiated in writing in a partnership or contractor’s agreement will not be reimbursed.
• Outside party invoice must be billed to and paid by the credit union.
• Reimbursements will be made to the awardee credit union only. Payments to credit union officials and personnel will not be made.

Expenses Not Allowed

If a credit union is unsure about the eligible expenses associated with the project, it should notify the NCUA in writing before incurring the expenses. This helps avoid issues at the time of a reimbursement request submission. Inquiries can be submitted by email to CUREAPPS@NCUA.gov.

Below are some examples of expenses credit unions cannot use grant funds to pay:

Ineligible Expenses Related to Conflicts of Interest

• Employees and board members may not receive compensation from hired consultants, partners, or vendors.
• Contracts, agreements, or internships given to credit union employees and board members or their relatives are prohibited.

Ineligible Miscellaneous Operational Expenses

• Custodial services
• Alcohol
• Matching funds, such as the matching portion of an Individual Development Account program
• Monthly and annual maintenance costs for technical support not associated with the implementation of the initiative project

Expenses incurred outside the agreed-upon performance period

• Promotional items, such as gifts, giveaways, souvenirs, and gift cards
• Recurring operational expenses, such as rent, utilities, annual financial audits, depreciation, funding for the allowance for loan losses, and office supplies
• Transportation, lodging accommodations, mileage, and parking for credit union personnel, contractors, and officials unless directly associated with approved projects

Ineligible Non-Operational Expenses

• The NCUA operating fee or other government agency expenses
• Projects or contracts based on covered relationships with the NCUA employee(s)

Contact the NCUA to ensure compliance with the above expense guidelines at CUREAPPS@NCUA.gov before incurring any expenses.

Application Review Process

Newly Chartered and Urgent need grant applications are non-competitive and will be assessed on the application’s merits and funding availability.

Step 1: Program Eligibility

The NCUA will review each application to ensure that it meets the General Eligibility and Administrative Requirements.

NCUA’s CDRLF regulation 12 CFR § 705.7(c)(1), states:

[T]he Qualifying Credit Union must exhibit a safe and sound financial condition, including a demonstrated ability to perform the requirements associated with the type of award being sought and compliance with NCUA's underwriting standards. In this respect, NCUA will consider the Qualifying Credit Union's long-term financial viability, including absence of indicators suggesting the Qualifying Credit Union is a candidate for merger, a purchase and assumption transaction, or conservatorship. NCUA will also consider the Qualifying Credit Union's compliance with the provisions of any previous loan or technical assistance grant received. NCUA may also consider information concerning the Qualifying Credit Union to which it already has access, including information obtained through the examination process and data contained in Call Reports.

Step 2: Substantive Review

Due to the emergency nature of some of these projects, the NCUA may ease requirements on a case-by-case basis.

Program Participation History

The NCUA will assess each credit union’s past adherence to reporting requirements and guidelines for previous CDRLF grant and loan awards. Poor performance on past awards, such as failure to submit mandatory reports, overdue loan payments, or meeting maximum award thresholds (especially for newly chartered credit union applicants), may affect the NCUA’s decision to approve the current grant application.

Project Objective

The application narratives and any supplemental information will be evaluated to determine how well the project will meet the program objectives of the CDRLF Urgent Need program.

The application should:

• Clearly describe the credit union’s needs. If applicable, include statistics or supplemental documentation to support this need.
• Contain a clear action plan demonstrating the credit union’s ability to successfully implement the project.
• Identify risks associated with the project’s implementation and present mitigation strategies.
• Demonstrate the project’s impact aligns with the program objectives.

Project Budget

The project budget must support the grant request by demonstrating a thorough understanding of the expenses required to successfully complete the project.

The NCUA may request clarification or more information as part of its assessment.

Financial Viability and Examination Reports

Factors that will be considered include, but are not limited to, enforcement actions, any ongoing concern issues, supervisory or oversight risks, declining financial position, and compliance risk.

The NCUA will assess a credit union’s recent examinations or audit reports if a reviewer deems it necessary. Exam results may be used to determine the Applicant’s financial health and its ability to successfully manage a CDRLF grant.

Tier Classification

Applicants will be assigned to risk tiers based on CAMELS rating, feedback from the Regional Offices, and other relevant data. Every tiered credit union, regardless of CAMELS rating, will be considered for funding. The tier classification sets the maximum grant award amounts and will be considered when determining the applicant’s ability to successfully manage the award, based on the financial health of the credit union and the level of risk to the CDRLF grant fund.

Tier A

Credit unions with a composite rating of 1 or 2, no component ratings of 3, 4, or 5. Tier A applicants may receive a grant of up to the maximum award amount.

Tier B

Credit unions with a composite rating of 1, 2, or 3, no component ratings of 4 or 5. Tier B applicants may receive a grant of up to the maximum award amount.

Tier C

Newly chartered and non-federally insured credit unions may not have received an examination from NCUA or a state supervisory authority. Tier C applicants require a review of the credit union’s most recently audited financial statements and, for newly chartered credit unions, financial projections that support the ability to manage the requested CDLRF grant. Tier C applicants may receive a grant of up to the maximum award amount and may only have up to $100,000 in CDRLF grants open at one time.

Tier D

Credit unions with any component ratings of 4 or 5. Tier D applicants may receive a grant of up to $25,000 and may only have one CDRLF grant open at one time.

Post-Award Requirements

All credit union awardees are responsible for the timely and complete submission of post-award-phase activities. Post-award requirements are summarized below.

Grant Agreement

The grant agreement includes important award information, such as the award amount, national policy requirements, termination provisions, performance period dates, and the approved project budget. In the grant agreement, the awardee affirms its intent to accept the award and complete the project as per the terms and conditions.

At the time of award, the awardee must provide the benchmark for each impact metric chosen in the application. These metrics will be tracked through subsequent reporting requirements.

The credit union accepts the terms of the award and formally accepts the CDRLF grant. A grant can be withdrawn if the credit union fails to formally accept the grant by the deadline.

Grant Extension Request

Credit unions may ask for an extension to the grant expiration date if they need more time to complete the project. The request must include the progress to date and justify the need for more time. Performance periods will not be extended past 18 months beyond the original grant expiration date.

Payment Request and Performance Report

Each final payment request requires credit unions to provide an outcome summary, reporting on impact metrics, evidence of the project’s successful completion, and certification the grant funds were used as described in the application.

Generally, credit unions must use their own funds for the approved project according to the terms and conditions of the grant agreement, then request reimbursement for eligible expenses when the project is complete. For awards of $15,000 and more, credit unions may request partial reimbursements throughout the performance period, though no more frequently than quarterly.

Credit unions with assets below $25 million may request payment before incurring project costs. Advances will not exceed 25 percent of the award amount at any given time, and credit unions must include a narrative within their payment request detailing the activities that will be undertaken with the advanced funds. Awardees must expend advanced funds within 90 days of receipt.

The specific requirements for each initiative may be subject to change but will be outlined in the post-award guidance provided by NCUA to grant awardees.

Records Retention

Awardees must retain all financial records, supporting documents, statistical records, and all other records pertinent to the award for three years from the date of submission of the final reimbursement request and performance report. Records retention requirements for CDRLF grants are further detailed in 2 CFR Section 200.334, Record retention requirements.

NCUA, inspectors general, and the Comptroller General of the United States must have the right of access to any documents, papers, or other records of the credit union which are pertinent to the federal award, to make audits, examinations, excerpts, and transcripts. 2 CFR Section 200.337, Access to records.

Records include, but are not limited to, the following:

• Evidence of expenses incurred, such as receipts, invoices, and contracts
• Evidence of payments, such as cleared checks, credit card and bank statements, and Automated Clearing House (ACH) transfer receipts
• Project completion documents

Remedies for Noncompliance

If the credit union fails to successfully complete the project, uses grant funds for nonallowable expenses, or does not comply with the award’s Terms and Conditions, the NCUA may take one or more of the following actions:

• Temporarily withhold payments pending correction of the cause of noncompliance
• Disallow all or part of the cost of the activity or action not in compliance
• Wholly or partly suspend or terminate the award
• Withhold further federal awards for the project or program
• Take other remedies that may be legally available

Contact Information

If you have questions about the CDRLF program, please contact the NCUA’s Office of Credit Union Resources and Expansion by phone at (703) 518-6610 or e-mail at CUREAPPS@NCUA.gov. Please allow 48 to 72 hours for a response. 

Appendix A - Project Completion Documentation

Project completion documentation will vary based on the Urgent Need initiative and the activities completed. Credit unions must provide proof that the project described in the Performance Report was fully and successfully implemented.

Below are examples of project completion documentation for CDRLF grant activities. This list is not exclusive:

• Storm remediation activities: Paid invoices from contractors for work completed, before and after photographs of the damaged area and repairs.
• Purchase of equipment: Receipts or invoices for purchased equipment.
• Training activities: Certificates of Completion for courses completed by board members or credit union staff, agendas from conferences, syllabi from training courses.
• Consulting Services: Paid invoices, project deliverables, or other documents created by the vendor that supports credit union operation.

Contact CUREAPPS@NCUA.gov for any questions regarding project completion documentation. 

Appendix B - Terms and Conditions

All applicants should read the entire Terms and Conditions before submitting their applications to understand eligibility and post award requirements. A summary is below.

NCUA administers the program in accordance with 2 CFR 200.300, statutory, administrative, and national policy requirements.

In addition to Standard Form 424B—Assurances for Non-Construction Programs, the applicant must certify it meets and agrees to the following terms and conditions, before applying:

• Only applicants that are a low-income-designated credit union, as defined in section 701.34 or 741.204 of NCUA’s regulations, are eligible.
• Applicant must comply with U.S. Office of Management and Budget, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2 CFR part 200.
• Applicant must undergo an audit if they hold $1,000,000 or more in federal awards during a fiscal year. Applicants that hold less than $1,000,000 in federal awards are exempt from this requirement.
  • For example, if a credit union uses a $250,000 loan from the NCUA’s CDRLF and a $750,000 grant from the CDFI Fund, totaling $1,000,000 in federal awards during the same fiscal year, then the credit union must be audited.
• Applicant is responsible for the efficient and effective administration of the federal award through application of sound management practices. Applicant assumes the responsibility for administering federal funds in a manner consistent with underlying agreements, program objectives, and the term and conditions of the federal award.
• Applicant must adhere to applicable authorizing statutes, regulations, and administrative and national policy requirements, including executive orders and other presidential directives. Please note that executive orders applicable to federal funding are published at the Federal Register: Executive Orders webpage.
• Applicant is responsible for ensuring no employee, contractor, consultant, or vendor has participated substantially in this grant-funded activity, nor otherwise benefited directly or indirectly from the grant, who, to its knowledge (assuming reasonable diligence), has a “covered relationship” with an NCUA employee who presently holds a position that would enable him or her to influence a pending or future grant award, or a payment of permitted expenses thereunder.
  • An employee, contractor, consultant, or vendor of the Applicant would have such a “covered relationship” if he or she were either a member of the household of an NCUA employee who presently holds a position that would enable him or her to influence a pending or future grant award, or a payment thereunder; or a relative of such an NCUA employee with whom he or she has a close personal relationship. 5 C.F.R. 2635.502(b)(1)(ii).
• In accordance with applicable federal awarding agency policy, applicant must disclose any conflicts of interest, in writing, to NCUA.
• Per 2 C.F.R 200.113, Applicant must disclose all violations of federal criminal law involving fraud, bribery, or gratuity violations potentially affecting the award.
• The Applicant conducts its activities such that no person is excluded from participation in, is denied the benefits of, or is subject to discrimination on the basis of race, color, national origin, sex (including pregnancy or sexual orientation), age, or disability in the distribution of services and/or benefits provided under this grant program. Furthermore, the Applicant must comply with all applicable Federal civil rights laws and nondiscrimination requirements, including Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq.), Title IX of the Education Amendments of 1972 (20 U.S.C. § 1681 et seq.), Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. § 794 et seq.), the Age Discrimination Act of 1975 (42 .U.S.C. § 6101 et seq.), and all applicable implementing regulations. The credit union certifies that it does not operate any programs promoting diversity, equity, and inclusion that violate any applicable Federal civil rights and nondiscrimination laws. The credit union agrees to provide evidence of its compliance as required by NCUA.
• If the applicant makes commitments for a project before the grant decision is made, the credit union is responsible for project expenses from its own funds if the grant is not approved; if the grant is approved, the credit union may request payment for expenses incurred dating back to the day the applicable NOFO was published.
• To reallocate or change approved project(s), including changing the grant expiration date, submit a written request to NCUA before the grant expiration date. Your request must be submitted and approved before the grant expires.
• Applicant is aware that NCUA will correspond with the credit union regarding this application by email, using the email address provided in this application.
• Applicant hereby acknowledges that NCUA reserves full discretion to deny payment under this grant in the event NCUA determines the Applicant is, or previously was, either in breach of any condition or limitation in the grant guidelines or in breach of the ‘covered relationship’ restriction set forth above.
• Information included in Outcome Summary or Success Stories is considered by NCUA to be Research Data, is governed by 2 C.F.R. 200.315, and may be made publicly available.
• The Applicant is aware that any false, fictitious, or fraudulent information or the omission of any material fact may subject Applicant to criminal, civil, or administrative penalties for fraud, false statements, false claims, or otherwise. (U.S. Code Title 18, Section 1001 and Title 31, Sections 3729–3730, and 3801–3812). The credit union agrees that its compliance with all applicable Federal civil rights and nondiscrimination laws is material to the government’s payment decisions for purposes of the False Claims Act, 31 U.S.C. § 3729(b)(4).
• Applicant is aware recipients and subrecipients are prohibited from obligating or expending loan or grant funds to procure or obtain equipment, services, or systems that use covered telecommunications equipment or services as a substantial or essential component of any system or as critical technology as part of any system in accordance with Public Law 115-232, section 889 and 2 CFR 200.216.
• Applicant is aware that any remedies for non-compliance taken by NCUA, including termination and suspension, will be in accordance with 2 C.F.R. 200.339 through 2 CFR 200.343.
• Applicants receiving payment in advance must maintain both written procedures that minimize the time elapsing between the transfer of funds and disbursement by the non-federal entity, and financial management systems that meet the standards for fund control and accountability.
• System for Award Management (SAM.gov) and Universal Identifier Requirements

a. Requirement for System for Award Management.

Unless exempt from this requirement under 2 CFR 25.110, the recipient must maintain a current and active registration in SAM.gov. The recipient's registration must always be current and active until the recipient submits all final reports required under this Federal award or receives the final payment, whichever is later. The recipient must review and update its information in SAM.gov at least annually from the date of its initial registration or any subsequent updates to ensure it is current, accurate, and complete. If applicable, this includes identifying the recipient's immediate and highest-level owner and subsidiaries and providing information about the recipient's predecessors that have received a Federal award or contract within the last three years.

b. Requirement for Unique Entity Identifier (UEI).

1. If the recipient is authorized to make subawards under this Federal award, the recipient:
   1. Must notify potential subrecipients that no entity may receive a subaward until the entity has provided its UEI to the recipient.
   2. Must not make a subaward to an entity unless the entity has provided its UEI to the recipient. Subrecipients are not required to complete full registration in SAM.gov to obtain a UEI.

c. Definitions. For the purposes of this award term:

System for Award Management (SAM.gov) means the Federal repository into which a recipient must provide the information required for the conduct of business as a recipient. More information about registration procedures may be found in SAM.gov.

Unique entity identifier means the universal identifier assigned by SAM.gov to uniquely identify an entity.

Entity is defined at 2 CFR 25.400 and includes all of the following types as defined in 2 CFR 200.1:

1. Non-Federal entity;
2. Foreign organization;
3. Foreign public entity;
4. Domestic for-profit organization; and
5. Federal agency.

Subaward has the meaning given in 2 CFR 200.1

Subrecipient has the meaning given in 2 CFR 200.1 

Appendix C – Advanced Payments – Frequently Asked Questions

Who is qualified to receive an advance payment?

Credit unions with less than $25 million in assets may request payment of award funds before incurring project costs. The NCUA will not advance more than 25 percent of the total award amount at any given time.

What if my credit union needs more than 25 percent of the project costs at a time?

If anticipated costs exceed the maximum amount allowed for an advance, awardees must use their own funds to cover remaining expenses. Once the project is completed, the credit union may request reimbursement for expenses more than the amount advanced.

How and when do I request an advance on my grant funds?

Upon approval of the award, a payment request is available in the NCUA’s grant management system. Credit unions must complete the “Proposed Use of Advanced Funds” field by entering a description of activities that will be completed using advanced funds. The activities should align with the project as described in the application as well as the line-item expenses entered. The NCUA will notify the credit union of the approval of the payment request, and funds will be disbursed to the credit union’s bank account on file.

Awardees must maintain advance payments of federal awards in interest-bearing accounts, unless one of the exceptions in 2 CFR 200.305(b)(11) applies. Any added interest earned on federal advance payments deposited in interest-bearing accounts must be remitted annually to the Department of Health and Human Services Payment Management System through an electronic medium using either ACH network or a Fedwire Funds Service payment.

What happens after my credit union receives an advance payment?

Awardees will have 90 days to expend funds on eligible project costs. Once the funds are expended and the activity is complete, the awardee will have 30 days to submit a Performance Report detailing the use of the funds and the outcome of the activities undertaken.

What is the penalty for advance funds that are not expended or used for ineligible expenses?

If any advance funds are used on ineligible activities, the funds must be returned through PAY.gov; otherwise, the NCUA may take any of the actions described under the Remedies for Noncompliance. The NCUA will notify the awardee and provide an opportunity for the awardee to cure the noncompliance before taking any action.