Planning and the Foundation, a Win-Win
The ever-changing financial marketplace provides a contrasting set of opportunities on one hand and threats on the other.
With a new year ahead of us, it's time for credit union boards and CEO’s to take a proactive stance towards a realistic assessment of their credit union's strengths, weaknesses and prospects for the future.
The Association offers Strategic Planning services that can be customized to meet your needs, and the Pennsylvania Credit Union Foundation has grant money available to offset the cost of this valuable service.
Click here for eligibility criteria and application requirements; or contact Joe Wambach for complete information on strategic planning alternatives.
NCUA Streamlines Community Development Loan/Grant Process
In an effort to encourage more low income credit unions to apply for below-market-rate loans from NCUA, the Board has issued a final rule (Part 705) that will lessen regulatory burdens, eliminate outdated procedures, and advance transparency with respect to loans and technical assistance grants from the Community Development Revolving Loan Fund. Overall, the rule greatly streamlines operating requirements and improves the fund’s administrative flexibility.
Specific examples of the beneficial changes to Part 705 include:
The final rule (Part 705) is found at http://www.ncua.gov/Legal/Documents/Regulations/FIR20111027CommDevRev.pdf.
- Application simplified: no community needs plan required;
- Maximum amount of a single loan increased to exceed $300,000 in certain circumstances;
- No mandatory matching requirements;
- Potential for lower interest rate;
- Clear regulation: more details were added to Notice of Funding Opportunity rather than to regulation;
- New option to fund credit unions’ urgent needs; and
- Flexible repayment of loan principal
The Office of Small Credit Union Initiatives administers the Community Development Revolving Loan Fund. Fund requirements and the application can be found at http://www.ncua.gov/Resources/CUs/Dev/Pages/Loans.aspx.
For further information, contact the Office of Small Credit Union Initiatives at 703-518-6643.
CUNA's Small Credit Union e-mail listserv is available on CUNA's website.
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