NCUA, National Federation Sponsoring Joint Call on TARP for CDCUs
The U.S. Treasury Department is not the only organization providing a conference call for community development credit unions to get more information about how they can apply for low interest Federal loans under the Troubled Asset Relief Program.
The NCUA and the National Federation of Community Development Credit Unions are jointly sponsoring a call March 4.
Housed under the Treasury Department's Community Development Financial Institutions Fund, the program seeks to promote increased lending, particularly to small businesses in low-income communities. Under the new program, the treasury will invest low-cost capital in certain financial institutions, including low-income credit unions that are certified as CDFIs. Those credit unions may apply for up to 3.5% of total assets at a dividend rate of 2%.
"This audio conference will be an excellent 'how-to' introduction for credit unions interested in this promising new initiative," noted NCUA Chairman Debbie Matz. "Since details were first unveiled early this month, there has been tremendous interest. I strongly encourage credit unions to take this opportunity to learn more about how this capital could help them better serve their members and reach out to more consumers."
"The Community Development Capital Initiative has great potential to strengthen low-income, CDFI-certified credit unions and help them expand their lending and services in America's hardest-hit communities," commented Cliff Rosenthal, National Federation CEO. "The Federation encourages all low-income credit unions to seriously consider applying for this one-time program. I hope that all eligible credit unions participate in what I am certain will be an informative, interesting session on March 4."