ALEXANDRIA, Va. — NCUA recently announced that its Community Development Revolving Loan Fund has maxed out and set a new record.

The CDRLF, which makes low-cost loans and grants to low-income designated credit unions, has processed 40 loans this year totaling over $7 million. Lending now has exceeded $13 million, the largest number of loans approved in a single year and the largest dollar amount for loans ever recorded.

By comparison, NCUA approved 24 CDRLF loans for $3.3 million in 2002, ending the year with nearly $8 million in loans outstanding. The next year it was just seven loans at $1 million with $5.3 million outstanding. However, last year it was back up to 23 loans for $4 million with a yearend outstanding balance of $7.4 million until the record set this year.

NCUA Chairman JoAnn Johnson commented that "2007 was a tremendous year for credit union member outreach. The demand for both grants and loans from the Community Development Revolving Loan Fund more than doubled from the same period last year, and NCUA encourages credit unions to continue to use the Fund in the future as a valuable resource."

"Credit unions' interest in providing improved financial services to their members and stimulating economic conditions in their communities through programs such as financial education, free tax preparation, and asset-building services as well as improved operations all contributed to active Fund participation," Office of Small Credit Union Initiatives Director Tawana Y. James said. "As existing loans pay down, we will have funds available to lend."

The CDRLF is one of the few NCUA items that has to go through the

congressional appropriations process as agency operations are generally fully funded by the industry. None of the appropriations bills have been signed by the president but, NCUA Director of Public and Congressional Affairs John McKechnie said, "We've been in continuing contact with Hill staff." His sources indicated

the appropriations bills would move by the end of the

calendar year.

Despite hitting its max, NCUA will not be seeking anything beyond its typical $1 million request for the CDRLF, McKechnie said. However, though the funding had dropped below $1 million a couple years back, he said the testimony by Chairman Johnson earlier this year before the Appropriations subcommittee has helped maintain that $1 million for fiscal year 2008.

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