Low-income credit unions will soon be able to apply for a grant program called the Financial Education and Financial Literacy Initiative, available through NCUA’s Office of Small Credit Union Initiatives.
Under the initiative, low-income designated credit unions may apply for up to $5,000 to create, enhance or expand their financial education activities. NCUA established the grants to support low-income credit unions in their efforts to improved financial literacy in their communities, particularly among students.
Projects and uses that NCUA hopes to fund include:
- Providing financial education materials aimed at students
- Adding or enhancing student or youth focused financial education modules on credit union websites
- Promoting affiliations with city and state housing agencies to provide first-time homebuyer counseling and foreclosure prevention counseling
NCUA Board Chairman Debbie Matz encouraged low-income credit unions to apply for the grants, which she described as an investment in the future. "NCUA is devoted to giving students everywhere the opportunity to gain financial skills," Chairman Matz said. "These grants will facilitate credit union efforts to ensure that today’s teenagers develop the ability to make smart financial decisions."
The grants will help low-income credit unions collaborate with schools, community organizations, and other financial institutions to provide financial education within the communities they serve. The application and guidance are available on NCUA's website at http://www.ncua.gov/Resources/CUs/Dev/Pages/Loans.aspx
What is a Low-Income Credit Union?
A low-income credit union is one in which a majority of its membership (50.01%) qualifies as low-income members as defined in Section 701.34 of the NCUA Rules and Regulations.