The National Credit Union Administration announced on Friday that it plans to award a low-income designated credit union with a $50,000 grant to develop a proposal that would result in long-term savings for credit unions.
“Pursuing collaborations and developing new and innovative best practices can assist small credit unions competing in today’s marketplace and add value to their membership,” NCUA Chairman Debbie Matz said. “This grant initiative will allow low-income credit unions to tap into their wealth of experience and create solutions to apply across the industry. In my experience, some of the best solutions come directly from members or employees.”
In order to qualify, a low-income designated credit union must collaborate with at least one other credit union, though the institution does have the option to include other entities, including service organizations, third-party vendors, and state leagues and associations.
Applications will be evaluated based on whether the proposal results in “substantial reduction of expenses for core credit union activity through collaboration,” “scalable collaborations that continue to grow,” “innovative collaborations that break new ground” and “replicable ideas or projects that other credit unions can adopt,” as well as the proposal’s “likelihood of success.
Applications are accepted from Feb. 15 to March 15, and the NCUA will announce the winner no later than April 12.