On-Site Coverage: NCUA Discusses Details of Program for Low Income Credit Unions
ALEXANDRIA, Va. -- Low income credit unions have until April 2 to apply for a federal program that would allow them to borrow money through the Troubled Assets Relief Program and the NCUA will work with the Treasury Department to determine eligibility, Pamela Williams of the agency's Office of Small Credit Union Initiatives told the NCUA Board today.
She also said that some credit unions will have to find matching funds before they can receive capital from the Treasury Department.
Credit unions have until April 16 to apply for designation by the Treasury Department as a community development financial institution.
The Obama Administration has authorized credit unions that have been recognized as community development financial institutions by the U.S. Treasury Department's CDFI Fund to apply for up to 3.5% of their total assets in capital from TARP funds. The NCUA's rule change would allow federally insured credit unions to participate in the program.
To expedite the rule making process, on Feb. 9, board members sent the rules out for 30-day public comment period on a notational vote.