Illinois Credit Union Foundation
Small Credit Union Development Fund
The Illinois Credit Union Foundation has established a fund designed to assist small credit unions in their efforts to remain viable. In the increasingly complex world of financial institutions, with its constantly changing regulations, small credit unions are struggling for survival. The Foundation hopes to alleviate some of the compliance burden from the credit unions with grants from its Small Credit Union Development (SCUD) Fund.
Initial seed funding for the SCUD Fund came from the Illinois Credit Union League and its affiliates. In addition, the Foundation received gifts from large credit unions in Illinois.
Credit unions must complete a SCUD grant request form and return it to the Foundation. These requests will be reviewed on a regular, timely basis. Reports from the credit unions that receive funding will be filed with the Foundation, and the credit unions will be asked to pledge to return at least 10% of the grant over a 3 year period to the Foundation to help maintain the fund.
The Foundation intends to sustain the fund and has made it part of the regular line of Foundation programs. Credit unions may request grants for things such as computer equipment, software, office needs, specialized training and planning sessions. Also eligible are marketing items purchased through the ICUL Service Corp.’s Shared Cost Advertising Program and website development.
The grants will be limited to $2,500 maximum per credit union per year. Credit unions eligible to apply for grants must meet the following criteria:
1. Under $30 million in assets
2. League affiliated
3. Camel rating of 1-3
4. Capital to asset ratio of less than 15%
Applications must be received by one of the grant review deadlines of March 31, July 31 and October 31 for consideration by the committee.