CUs Starting to Receive TARP Money Under CDCI Program
Credit unions that have been recognized as community development financial institutions and those that have been judged viable by the NCUA have begun receiving money under the Community Development Capital Initiative.
The U.S. Treasury launched the CDCI program as a way to help community development credit unions and banks stabilize their capital and continue outreach into lower income communities and areas. Money for the effort came from the Troubled Asset Relief Program.
So far neither the NCUA nor the U.S. Treasury have released a count of how many CUs have received CDCI funds, but the NCUA said previously that under 100 had completed the entire CDCI application process. The National Federation of Community Development Credit Unions said 80 credit union applications have been sent to treasury with a positive recommendation for funding.
Credit unions that receive CDCI funds are being notified by letter.Once notified, they have thirty days to sign legal papers related to the funds and, in some cases, complete final requirements.