The applications that low income credit unions will have to fill out to participate in the U.S. Treasury's Community Development Capital Initiative will only be two pages long, according to NCUA and Treasury officials.
The CDCI is a U.S. Treasury program funded through the Troubled Asset Relief Program. It provides money financial institutions that are designated community development financial institutions, including credit unions, can use at very low interest rates as capital for their operations.
While participating in a conference call about CDCI the officials, joined by Cliff Rosenthal, CEO of the National Federation of Community Development Credit Unions, stressed that the Treasury had sought to reduce the paperwork in the application but added that two significant hurdles faced some credit unions that might be interested in participating. Credit unions who want to participate need to be both designated as a low income credit union by the NCUA as well as be recognized as a community development financial institution by the CDFI Fund.
Credit unions wishing to be recognized as a CDFI for the program should make sure to apply for the CDFI recognition by April 16 and apply for funding to CDCI by April 2.Credit unions will also have to complete a secondary capital plan according to the NCUA's rules and regulations and should plan on submitting that as part of its CDCI application.