NATIONAL CREDIT UNION ADMINSTRATION\
Office of Small Credit Union Initiatives

Community Development Revolving Loan Fund

General Guidelines for Technical Assistance Grants for Credit Unions

Staff, Official, and Board Member Training Grant Initiative - 2008

Closes: December 31, 2008 or when funds are exhausted.

> 1\. Application
>
> 2\. Instructions
>
> 3\. Guidelines
>
> 4\. Sample Evaluation Sheet

***Eligible credit unions may apply for a maximum of \$3,000.***

*National Credit Union Administration*

*Office of Small Credit Union Initiatives*

*Community Development Revolving Loan Fund*

*1775 Duke Street*

*Alexandria, Virginia 22314*

*National Credit Union Administration*

*Office of Small Credit Union Initiatives*

*Community Development Revolving Loan Fund*

Application

Staff, Official, and Board Member Training Grant Initiative-2008

  ------------------------- ----------------------------------------------
  [1. Credit Union          
  Name]{.smallcaps}         

  [2. Mailing               
  Address]{.smallcaps}      

  [Mailing Address,         
  con't]{.smallcaps}        

  [3. City, State,          
  ZIP]{.smallcaps}          

  [4. Contact               
  Name/Title]{.smallcaps}   

  [5. Contact Phone         
  Number]{.smallcaps}       

  [6. Credit Union Fax      
  Number]{.smallcaps}       

  [7. Credit Union Email    
  Address]{.smallcaps}      

  [8. Credit Union Charter  
  Number]{.smallcaps}       

  [9. Credit Union Employer 
  Tax ID                    
  Number]{.smallcaps}       

  [10. Credit Union Dun and 
  Bradstreet Universal      
  Numbering System          
  Number]{.smallcaps}       

  [11. Amount               \$
  Requested]{.smallcaps}    

  [12. Name and Title of    
  Authorized                
  Individual]{.smallcaps}   

                            

  [13.                      
  Signature]{.smallcaps}    
  ------------------------- ----------------------------------------------

\*By signing above, the credit union representative (1) is certifying
that the credit union remains low-income designated, as defined in
NCUA's Rules and Regulations; and (2) is committing the credit union to
working toward the objectives of the CDRLF as described in the grant
guidelines and the application.

Before completing the application, please read all instructions and
guidelines carefully and thoroughly.

Answer the following questions and attach separate sheets as necessary
for your responses.

1\. Describe fully the training/conference that the grant will cover.

2\. Provide the following information:

\(a\) Name(s) of the vendors who will provide the training.

\(b\) List of costs associated with the training. (Tuition, books,
supplies, etc.)

> \(c\) Copies of bids, estimates, prices, and other supporting
> information.

3\. Will the grant funds help the credit union to (check all that apply)

>  Improve its operational efficiency?
>
>  Improve its financial condition?
>
>  Develop management awareness of laws and regulations and their
> implementation?
>
>  Provide new services to members?
>
>  Improve upon existing services?

The credit union will be asked to describe the outcomes of the grant
proceeds in the credit union's grant evaluation.

General Guidelines for Technical Assistance Grants for Credit Unions

Staff, Official, and Board Member Training Grant Initiative-2008

Instructions

1\. Enter the full legal name of the credit union. (EG: Mammoth
Employees Federal Credit Union or Middle America Credit Union)

2\. Enter the mailing address of the credit union, including suite
number, building number, floor, or any additional required address
information.

3\. Enter the City, State, and ZIP code corresponding to the mailing
address of the credit union.

4\. Enter the name and title of the individual to whom questions
regarding this grant application should be addressed.

5\. Enter the telephone number of the contact person listed in item 4.
above.

6\. Enter the fax number of the credit union, if none, enter "none."

7\. Enter the credit union's email address (format should be
<credit.union@ncua.gov>), if none, enter "none."

8\. Enter the credit union's charter number.

9\. Enter the credit union's 9 digit employer tax ID number.

10\. Enter the credit union's 9 digit Dun and Bradstreet Universal
Numbering System (DUNS) Number. Dun and Bradstreet Universal Numbering
System (DUNS) numbers may be obtained by calling Dun and Bradstreet,
toll-free, at 1-866-705-5711.

11\. Enter the dollar amount of the grant amount that the credit union
is requesting.

12\. Type or print the name and title of the individual who is
authorized to sign on behalf of the credit union.

13\. The individual named in question 12. above must sign the front page
of this application.

Questions regarding completing this application can be directed to the
Office of Small Credit Union Initiatives at

National Credit Union Administration (703) 518-6610---phone

Office of Small Credit Union Initiatives (703) 519-4088---facsimile

1775 Duke Street E-mail: oscuiapps@ncua.gov

Alexandria, VA 22314

Guidelines

1\. What is the Purpose of the Community Development Revolving Loan
Fund?

The National Credit Union Administration's (NCUA's) Community
Development Revolving Loan Fund (CDRLF) was established by Congress to
support credit unions that serve low-income communities by making loans
and TAGs available to qualifying institutions. Low-interest
loans/deposits are made available to low-income designated credit unions
to enhance their financial capacity to, in turn, extend financial
services to their members.

Congress appropriates funds to the CDRLF for loans and grants. The
interest earned on loans is also available as a source of additional
funds retained by the program for grant purposes.

2\. What is the objective of Technical Assistance Grants?

The objective, or desired outcome, of technical assistance grants is to
help low-income credit unions provide financial services to their
members and to make the operations of those credit unions more
efficient.

3\. Which credit unions are eligible to apply?

To participate in the Program, a federally chartered credit union must
be currently designated as a "low-income" credit union as set forth in
NCUA's Rules and Regulations, Section 701.34. A state chartered credit
union must have the equivalent low-income designation from its
respective state supervisory authority (SSA) and concurrence from NCUA.

In addition, based on an Office of Management and Budget (OMB) policy
directive effective October 31, 2003, credit unions must have a Dun and
Bradstreet Universal Numbering System (DUNS) number in order to be
eligible to receive grant or loan funding from the CDRLF. As of this
printing, a DUNS number may be obtained by calling Dun and Bradstreet,
toll-free, at 1-866-705-5711.

4\. What is the Staff, Official, and Board Member Training Grant
Initiative?

Strong and competent leadership in credit unions is critical in helping
credit unions achieve their strategic objectives, delivering financial
services to members, and attracting new members.

The Staff, Official, and Board Training Initiative provides funds to
eligible credit unions to offset the cost of tuition, books and supplies
for relevant training courses, workshops, conferences, or seminars. This
initiative is open year-round and credit unions may apply for grant
funds at any time during the year.

5\. How much money is available?

The amount allocated to the initiative is \$120,000. The maximum grant
amount is \$3,000.

Credit unions may apply for up to \$3,000.

6\. What are allowable uses of grant funds?

Grant funds may be used to pay the cost of tuition, registration, books,
and materials or supplies required for the course, workshop, conference,
or seminar. Courses, seminars, and workshops, or other training methods
should be relevant to improving the operations of credit unions, and
ultimately enable the credit union to better serve its members.

Grant funds may be used to purchase reference materials or
subscriptions. Grant funds may also be used to pay for an on-site
trainer.

Travel expenses, such as hotel, food, and transportation will not be
reimbursed.

All approved costs will be detailed in the grant award letter to the
credit union.

7\. How does the grant payment process work?

-   First, credit unions must apply for a grant before making any
    expenditure.

-   After receiving a grant approval letter, the credit union may
    purchase the goods or spend the funds, up to the amount approved.

-   After making the expenditure, the credit union must then submit
    copies of receipts and proof of payment to NCUA for reimbursement.
    OSCUI encourages credit unions to submit all receipts at one time.

-   NCUA will review the receipts and issue a check to reimburse
    approved expenditures. Checks generally take 3 weeks to be issued
    from the U.S. Treasury.

-   All requests for reimbursement must be received before the end of
    the commitment period listed in the grant award letter.

-   OSCUI will not process incomplete applications. Credit unions may
    resubmit a grant application, provided the submission deadline has
    not passed and grant monies have not expired.

-   Credit unions must also send a summary of the grant outcome to
    OSCUI. Credit unions failing to submit the summary may be ineligible
    for future grants.

8\. How are grant applications evaluated?

Subject to funds availability, grants are awarded after careful
consideration of the merits of an application. Grant applications will
be considered based on the financial and non-financial factors listed
below.

Financial factors include, but are not necessarily limited to, the
following:

> [NCUA CAMEL]{.underline}[^1] [Rating]{.underline}
>
> [Net Worth Ratio]{.underline}
>
> [Delinquency Ratio]{.underline}
>
> [Return on Assets Ratio]{.underline}.

Financial factors are used to determine the overall financial condition
of the credit union and its ability to carry out the project as
described in the grant application.

Non-Financial factors include the following:

> [Assessment of Management]{.underline} is a determination of whether
> credit union management has been responsive to examiners and whether
> management has the ability to carry out the project described in the
> grant application.
>
> [Purpose]{.underline} is a determination of whether the outcome of the
> project, as described in the grant application, is consistent with the
> purpose of the CDRLF as described in Section 705.10 of the NCUA's
> Rules and Regulations. The purpose would be: (1) providing basic
> financial and related services to residents in their communities; and
> (2) improving the operations of the credit union. OSCUI will deny
> grant applications in which the purpose of the grant is inconsistent
> with the purpose of the CDRLF.
>
> [Assessment of Impact]{.underline} is a determination of the scope and
> reach of the proposed use of the grant funds. Grant applications with
> projects having an impact on the community as whole will receive more
> favorable consideration.
>
> [Previous Funding]{.underline} is a determination of whether the
> credit union has received previous CDRLF grant funding. Section
> 705.2(b) of NCUA's Rules and Regulations states that the purpose of
> the CDRLF is to gain maximum economic impact on as many participating
> credit unions as possible. Therefore, credit unions which have NOT
> received funding in the past will receive priority consideration.
>
> [Ability to Self-Fund]{.underline} is an assessment of the credit
> union's net worth, cash, and liquidity to determine whether the credit
> union has the ability to fund the project on its own. More favorable
> consideration is given to those credit unions which cannot completely
> fund the project as described in the grant application.
>
> [Partnerships]{.underline} is a determination of whether the credit
> union has developed other partner relationships and has considered
> other sources of grant funds. Under this grant initiative, a credit
> union with a viable partner relationship will receive more favorable
> consideration.
>
> [Leverage]{.underline} is a determination of the degree to which the
> credit union has acquired resources other than NCUA grants. Leverage
> measures the total cost of the project compared with the total grant
> dollars requested from NCUA. If, for example, a project costs \$5,000
> and the credit union requests \$5,000 from NCUA, that project's
> leverage ratio is 1-to-1. If, for example, a project costs \$20,000
> and the credit union requests a \$5,000 grant from NCUA, that project
> has a 4-to-1 leverage ratio. Projects with a higher leverage ratio
> will receive more favorable consideration.

9\. Is there anything that would cause an application to be immediately
denied?

Yes.

> \(a\) Grants from the CDRLF are reimbursable grants. Credit unions
> applying for TAGs must obtain approval of the proposed expenditures
> before making those expenditures. Therefore, the OSCUI will not fund
> any grant where the credit union has committed to, procured, or
> purchased the good or service in advance of grant approval.
>
> \(b\) TAG funds are not provided for recurring operational expenses
> such as salaries, rent, maintenance agreements, annual audits, funding
> for the allowance for loan losses, or office supplies.
>
> Salaries to employees are not reimbursable under any CDRLF grant
> initiative. An individual is considered an employee if the credit
> union withholds income taxes, withholds and pays Social Security and
> Medicare taxes, and pays unemployment tax on wages paid.
>
> Expenses for contractors may be reimbursable under certain grant
> initiatives. In general, the credit union would not withhold or pay
> any taxes on payments to independent contractors.
>
> \(c\) Credit unions may not use TAG funds to provide funds to members,
> such as funding the matching portion of an IDA program or providing
> gift cards to members.
>
> \(d\) Credit unions failing to submit summaries for grants previously
> awarded may be ineligible to receive additional grant funds.
>
> \(e\) TAG funds may not be used to reimburse NCUA, or any government
> agency, for any activity.

10\. Are there restrictions or limits on which items will be reimbursed?

Yes. The following restrictions apply to reimbursements under CDRLF
grant initiatives. The list is highlights the more common reasons that
OSCUI would not reimburse expenses.

> ***Equipment Purchase and Installation:***
>
> *Annual maintenance fees and insurance costs are not reimbursable.*
>
> ***Marketing:***
>
> *Marketing and advertising for the general promotion of the credit
> union will not be reimbursed.*
>
> ***Mileage:***
>
> *Reimbursement requests for mileage must include receipts and the
> starting point, the destination, and the number of trips. Mileage is
> reimbursable at the 2007 IRS standard mileage rate of \$0.485 per
> mile.*
>
> ***Postage:***
>
> *To be reimbursed, the credit union must supply receipts and
> supporting documentation, such as the number of mailings, with its
> requests for reimbursement of postage.*
>
> ***Printing/Copying:***
>
> *To be reimbursed, the credit union must supply receipts and
> supporting documentation, such as the number of copies made, with its
> requests for reimbursement of printing and copying*
>
> ***Promotional Items:***
>
> *Promotional items such as gifts, give-aways, souvenirs, or gift cards
> are not reimbursable.*
>
> ***Regular Expenses/Pro-Rated Expenses:***
>
> *Regular expenses of the credit union, such as rent, utilities, and
> depreciation are not reimbursable under this grant initiative.
> "Pro-rated" expenses of the credit union, such as a portion of
> telephone or utility costs, are not reimbursable. These expenses are
> considered regular operating expenses.*
>
> ***Salaries/Contractors:***
>
> *Salaries to employees are not reimbursable under any CDRLF grant
> initiative. An individual is considered an employee if the credit
> union withholds income taxes, withholds and pays Social Security and
> Medicare taxes, and pays unemployment tax on wages paid. In general,
> the credit union would not withhold or pay any taxes on payments to
> independent contractors.*
>
> ***Undocumented Expenses:***
>
> *To be reimbursed, credit unions must submit invoices or receipts that
> correspond to the items listed in the grant award letter, and proof of
> payment. Requests for reimbursement that do not contain adequate
> documentation will not be reimbursed.*

11\. What are the application deadlines?

Application Close Date: December 31, 2008

> or when funds are exhausted.

12\. What information needs to be submitted with the grant application?

Credit unions must submit a [completed]{.underline} Technical Assistance
Grant Application. The application must include the signed application
form, answers to all questions in the application, and copies of bids,
estimates, prices, and other supporting information.

Incomplete grant applications will not be considered. Credit unions may
resubmit a completed application provided the application acceptance
period is still open, and funds are not exhausted.

13\. Where should completed applications be submitted?

Applications may be faxed to: (703) 519-4088

Applications may be emailed to: <oscuiapps@ncua.gov>

Credit unions that are unable to fax or email applications should
telephone the Office at (703) 518-6610.

14\. When will credit unions know about grant awards?

Applications under this grant initiative are evaluated as they are
received. Typically, OSCUI will notify credit unions of their awards
within 15 business days of receiving their application.

15\. What is the reporting requirement after receiving a grant?

Credit unions receiving awards must provide a summary of the impact of
the grant funding to OSCUI as stated on the grant application form. The
time frame for submitting the summary will be stated in the award
letter. The submission deadline allows reasonable time for the credit
union to ascertain the benefits of the grant.

The summary should discuss the overall project and how the funding
enabled the credit union to accomplish its objective. Credit unions'
success stories provide invaluable supporting information when OSCUI
requests annual appropriations from Congress to replenish the grant and
loan fund. Credit unions must specify the impact the grant funds have
had on the credit union's delivery of service and the consequences upon
the community the credit union serves.

Failure to submit this evaluation will have an impact on the credit
union's ability to receive grants in the future.

Evaluations may be faxed to: 703-519-4088

Evaluations may be emailed to: <oscuiapps@ncua.gov>

16\. How can credit unions contact the office with questions?

Credit unions can contact the office at

> Office of Small Credit Union Initiatives
>
> National Credit Union Administration
>
> 1775 Duke Street
>
> Alexandria, Virginia 22314

Phone: (703) 518-6610

Fax: (703) 519-4088

Email: <oscuiapps@ncua.gov>

*National Credit Union Administration*

*Office of Small Credit Union Initiatives*

*Community Development Revolving Loan Fund*

Grant Outcome Summary

Staff, Official, and Board Member Training Initiative - 2008

  ------------------------ ----------------------------------------------
  [1. Credit Union         
  Name]{.smallcaps}        

  [2. Mailing              
  Address]{.smallcaps}     

  [Mailing Address,        
  con't]{.smallcaps}       

  [3. City, State,         
  ZIP]{.smallcaps}         

  [4. Credit Union Charter 
  Number]{.smallcaps}      

  [5. Commitment           
  Number]{.smallcaps}      
  ------------------------ ----------------------------------------------

1\. What type of training did credit union staff attend? (Check all that
apply.)

>  Business or Strategic Planning
>
>  Compliance, Policies, and Procedures
>
>  Computer and Technology Skills
>
>  Economics, Finance, and Market Trends
>
>  Employee and Management Development
>
>  Investments and Asset Liability Management
>
>  Lending, including underwriting and new products
>
>  Member and Customer Service
>
>  Security and Fraud Prevention
>
>  Other:
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

2\. Have the grant funds helped the credit union to: (check all that
apply)

>  Improve its operational efficiency?
>
>  Improve its financial condition?

-   Develop management awareness of laws and regulations and their

> implementation?
>
>  Provide new services to members?
>
>  Improve upon existing services?

3\. How many members does the credit union currently serve?

4\. Briefly describe the improvements to the credit union's condition
(items checked above) on a separate sheet.

Please note that your credit union's success stories provide invaluable
supporting information when we request annual appropriations from
Congress to replenish the grant and loan fund.

[^1]: ^^ CAMEL ratings are explained in NCUA Letter to Credit Unions
    No. 07-CU-12. Financial ratios are explained in the Users' Guide for
    NCUA's Financial Performance Report. Both documents are available on
    the NCUA website at http://www.ncua.gov.