NCUA, Treasury Share Information on New Low Income CU Capital Initiative
March 5, 2010 The National Credit Union Administration (NCUA) held an audio conference on March 4 for low income credit unions interested in the U.S. Treasury's Community Development Capital Initiative which is part of the Obama Administration's commitment to improving access to credit for small businesses.
This new aspect of the TARP program will invest lower-cost capital in Community Development Financial Institutions (CDFIs) that lend to small businesses in the country's hardest-hit communities. NCUA, Treasury and the National Federation of Community Development Credit Unions participated in the call to explain the process of participating in this program.
The program is open to financial institutions, including LICUs and the equivalent for state-chartered credit unions that are designated as Community Development Financial Institutions (CDFIs). The CDCI application deadline date is April 2, 2010.
A Secondary Capital Plan is required as part of the application process. The Secondary Capital Plan at a minimum has to meet the requirements per NCUA's Rules and Regulations 701.34 (b)(1). The deadline to submit a Secondary Capital Plan is May 3, 2010. The application process will include a review by a Council at NCUA, which will be made up of NCUA staff as well as a state regulator.
Click here to learn more about the Community Development Capital Initiative. Click here for specific information about low income credit union participation in the program. The NCUA has issued an interim final rule prescribing regulations for this program. To see a NASCUS summary of the interim final rule, follow this link..