NEW YORK — Investments in community development credit unions hit record levels in 2007, according to the National Federation of Community Development Credit Unions.

The Federation reported that it raised $10.5 million in investments or commitment to investments for 2007 at the same time that new investments in individual CDCUs hit $8.8 million. The investments meant that total assets under Federation management hit $38.4 million with 121 CDCUs participating in the program, using money from 32 investors.

The program helps CDCUs with deposits and loans in the form of secondary capital.

“We launched this program 25 years ago with a vision that if we could raise grant funding and low-interest debt, we could begin investing in member CDCUs at below-market rates, helping them implement high-impact programs to better serve their communities,” explained Federation President/CEO Clifford N. Rosenthal, one of the architects of the Federation's investment program.

“We originally estimated that the spread income on a $5 million portfolio would make the program self-sufficient,” Rosenthal added. “However, 25 years since inception our portfolio has grown to nearly $40 million under management, far beyond our initial expectations, but current projections show that $50 million under management will make the program completely self-sustaining.”

Over the past 25 years, many foundations, banks, religious organizations, and other institutions have invested in CDCUs through this program. The Ford Foundation; Bank of America; HSBC Bank; Presbyterian Church (USA) Foundation; Mennonite Mutual Aid; Calvert Foundation; John D. and Catherine T. MacArthur Foundation; JPMorgan Chase; and the federal CDFI Fund have been just a few of the major investors.