Federation Eyes Bond Program
The National Federation of Community Development Credit Unions is investigating whether and how it could use a federal bond program to help CDCUs boost their secondary capital by possibly millions of dollars.
The Small Business Jobs Act of 2010 included a provision which allows the Department of the Treasury to guarantee bonds issued for economic or community development. The law allows Treasury to issue up to $1 billion per year in bond authority through Sept. 14, 2014. The minimum bond increments for the taxable instruments would be $100 million, but the guarantees may be structured to last as long as 30 years.