United States flag An official website of the United States government
Help With My Credit Union Español Contact Us
Search

CDRLF Loan Post-award Guidelines Instructions for Credit Unions

Loan Process Overview

The Community Development Revolving Loan Fund (CDRLF) Loan Program provides low-interest loans to low-income-designated credit unions to support underserved communities. This guide covers managing a CDRLF loan, including tentative award approval, final approval, and reporting.

For more information on the CDRLF Loan Program, visit NCUA’s program website for current Loan Program Guidelines and funding notices.

Pre-Award Requirements

NCUA notifies successful applicants of tentative CDRLF loan approval. This notice does not obligate funds to the credit union. Funding is contingent upon the credit union’s completion of the following tasks:

  • Signing and returning the Loan Documents
  • Signing and returning standard government forms, as applicable
  • Providing a resolution from the credit union’s Board of Directors authorizing the borrowing of funds
  • Ensuring the credit union has an active registration in the System for Award Management (SAM.gov) for at least the next 180 days from submission

The following sections provide detailed instructions on how to complete these tasks.

Review and Sign the Loan Documents

The Loan Documents are the agreements that legally set the CDRLF loan requirements.

Loan Agreement

The Loan Agreement includes details of the loan award, including the approved project budget (Appendix A), impact metrics (Appendix B), and National Policy Requirements (Appendix C). The credit union must agree to comply with all terms, conditions, and requirements set forth in the Agreement.

The Loan Agreement will be sent to the Authorized Credit Union Official (ACUO) for electronic signature. The ACUO will receive an email from AdobeSign with instructions on reviewing and signing the loan agreement.

Once signed, the Loan Agreement is automatically returned to NCUA through AdobeSign, and the credit union will receive confirmation via email. Upon final approval, the Loan Agreement will be signed by the Director of the Office of Credit Union Resources and Expansion (CURE), and a copy of the final Loan Agreement will be emailed to the ACUO.

The CDRLF Award Agreement Appendices must be accessed in CyberGrants. Once logged in, go to the Post-Award Activities Requiring Action section to find the document. This document has information critical to the successful implementation of your project, such as key dates, the approved project budget, impact metrics, terms and conditions, and policy requirements:

  • Appendix A: Review the approved project budget when implementing the project. NCUA may have also highlighted costs proposed in the application that are not allowed under the CDRLF Loan Program.
  • Appendix B: 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.
  • Appendix C: National Policy Requirements and Administrative Requirements outlines various federal laws and policies that may apply to the CDRLF Loan Program. Borrower is responsible for making sure activities funded by Federal Awards comply with applicable federal requirements, including whether Borrower carries out those activities directly or uses contractors or subrecipients.

Carefully review this information before submitting the appendices. Follow the prompts to navigate through the document. Submit the appendices by acknowledging the terms and conditions and submitting the document.

Promissory Note

The Promissory Note binds the credit union to repay the loan to NCUA. It is included with the tentative approval notification and outlines details such as effective loan date, maturity date, interest rate, and repayment schedule. Additionally, an amortization schedule will be sent to the credit union. These documents should be referred to when repaying the CDRLF loan.

The credit union is required to print, sign, and mail the Promissory Note to NCUA at:

Office of Credit Union Resources and Expansion
National Credit Union Administration
1775 Duke Street, Alexandria, VA 22314-3428 

NCUA recommends using a service that requires signature upon delivery to confirm receipt of the Promissory Note.

Board Resolution

The Loan Agreement requires the credit union to submit a resolution from its Board of Directors authorizing the borrowing of funds and the signing of the Loan Agreement and Promissory Note.

The Board of Directors resolution must be submitted to NCUA via email at CUREAPPS@ncua.gov.

Review and Sign the Standard Government Forms

Standard government forms1 are used to ensure awardees comply with all federal requirements. The specific forms necessary will depend on the details of each loan project and will be specified in the tentative approval notice.

Confirming SAM.gov Registration

Credit unions must have an active System for Award Management (SAM.gov) registration to receive NCUA loan funds. Registration must be renewed annually.

Registration instructions can be found on the SAM.gov website. Because the registration process can take up to several weeks, it is best to start the process of reactivating your registration as early as possible. If your registration is within 60 days of expiration, NCUA recommends you begin the process for registration to prevent delays with the approval of the loan and fund disbursement.

Final Loan Approval

Once all of the required documents are received by NCUA, we will complete the process for approving the loan.

NCUA will email the credit union the award decision and include a copy of the Loan Agreement, Promissory Note, and amortization schedule. The credit union should keep this notification for its records.

Funds will be deposited into the account provided in your application within a few days of final approval.

Post-Award Requirements

Payment

Interest-only payments start 6 months after the effective loan date and recur every 6 months until maturity.

The full unpaid principal balance is due on the maturity date. The credit union may prepay any or all principal without penalty.

Payments must be made electronically through the Pay.gov system, or its successor, as specified in the Promissory Note and amortization schedule, to NCUA for the CDRLF.

Overpayments up to or equal to $50 will not be refunded to the credit union due to transaction costs. Payment above outstanding principal and interest of more than $50 will be repaid to the credit union.

Underpayments of $50 or less will be written off, but larger underpayments will be pursued by NCUA.

Reporting

Reporting to NCUA

Each year, the credit union must submit a Performance Report summarizing the project’s progress. Performance Reports are due on the anniversary of the loan’s effective date. If the loan is repaid early, the final Performance Report should be submitted at the time of repayment.

The Performance Report must be accessed in the CyberGrants application, specifically under the Post-Award Activities Requiring Action section. The following are key components of the Performance Report:

  • Start and End Date Covered by the Report: The report should cover the previous 12 months, or the period since the last report if the loan was repaid early.
  • Project Summary Narrative: Describe how the project was implemented during the reporting period. This section allows you to discuss any challenges faced or any changes to the project from the time of application or previous report.
  • Project Completion Documents: Upload documentation supporting the Project Summary Narrative, including vendor invoices, deliverables, evidence of activity completion, and member reports (see below).
  • Project Outcome Narrative: Explain how the grant helped the credit union achieve the expected results, as stated in the original application. Describe how the project impacted the underserved community and achieved the objectives of the credit union and CDRLF program.
  • Impact Metrics: Update the data for impact metrics selected in the original loan application.
  • Individual Success Story: Share an example illustrating how the project benefited a member of the underserved community.

Reporting to Members

A Participating Credit Union must annually update its members on progress in delivering needed community services either during the annual meeting or in a written report sent to all members. The Participating Credit Union is required to submit the written report, or a summary of the report, to NCUA.

Default

The Loan Agreement details the causes and remedies for default. Defaults may be monetary (failure to repay) or failure to comply with the terms and conditions, national policy requirements, or regulatory requirements (12 CFR 705.5(f)).

NCUA will contact the borrower and provide guidance to resolve the default before taking final action.

Default may lead to immediate repayment of the full loan and interest.

Contact Information

If you need to contact NCUA regarding the CDRLF program, send your request by email to CUREAPPS@ncua.gov. Please allow up to 72 hours for a response.