ALEXANDRIA, Va. (3/8/10)—In a jointly sponsored audio conference, the National Credit Union Administration (NCUA) and National Federation of Community Development Credit Unions reached 122 participants with specifics about the U.S. Department of the Treasury’s new Community Development Capital Initiative (CDCI). The CDCI program, announced Feb. 3, ix designed to increase lending in low-income communities. It gives Treasury a means to invest low-cost capital in specific financial institutions, including certain certified Community Development Financial Institution (CDFI) credit unions. Participants were told that time is of utmost importance, the application deadline is just weeks away. Low-income credit unions must apply for funding by April 2, and uncertified LICUs must apply for CDFI certification by April 16. “As the (program) rules are being finalized, NCUA wants to facilitate participation by the credit union community in every way possible,” noted NCUA Chairman Debbie Matz. “NCUA’s audio conference and the new efforts announced underscore my commitment to work closely with the industry in order to ensure the broadest and fullest benefit from this innovative program.” The new efforts announced by NCUA during the call include:
* The availability of technical assistance grants to assist eligible credit unions develop a Secondary Capital Plan for the purpose of meeting the application requirement for CDCI funding; and * A notice to eligible credit unions indicating whether, per NCUA’s preliminary analysis, the credit union will require matching funds in order to access CDCI funding.
The CDCI program enables low-income credit unions to apply for up to 3.5% of total assets, but not more than 50% of capital and unimpaired surplus. CDCI capital investments will carry an initial 2% rate, three percentage points lower than the rate offered by Treasury’s prior Capital Purchase Programs. Program inquiries may be directed to LICUCapital@ncua.gov. For application and program materials, use the resource links below.