Announcing a New Funding Round for Secondary Capital
Applications will be reviewed on a rolling basis through October 31, 2016
The Federation has launched the next funding round of Community Development Investment (CDI) Program secondary capital to expand innovative credit union services to new and emerging markets. Join us for a webinar on October 11th to learn how your credit union can use secondary capital to launch high impact community development products in your community.
Secondary Capital: A Tool to Increase Community Impact
Tuesday, October 11, 2016 | 2:00 - 3:00 pm ET
Don't miss this opportunity to grow your credit union and serve your members!
About Secondary Capital
Secondary Capital is a subordinated loan that can be counted towards a credit union's net worth and can be leveraged by growing CDCUs to expand safe and affordable lending to local communities.
The Federation offers two secondary capital loan products, Secondary Capital I and Secondary Capital II:
- The Federation makes Secondary Capital I loans of up to $500,000 with maturities of 5-7 years and interest rates of between 5%-6%.
- For qualifying credit unions, the Federation offers Secondary Capital II loans of up to $1 million with maturities of 5-7 years and interest rates of between 3.25%-3.75%.
How to Apply
All applications are on the Federation's website, www.inclusiv.org. All credit unions may apply, but only Federation members in good standing may receive funding. Electronic submissions of completed applications are preferred; however, applications may be mailed to the Federation at 39 Broadway, Suite 2140, New York, NY 10006 or faxed to 212-809-3274. If you have questions about your application, please contact us at cdinvestment@inclusiv.org or call Cathi Kim at 800-437-8711 or 212-809-1850, ext. 271.
Only low-income designated credit unions may hold Secondary Capital loans. For more detail about Secondary Capital loans, please refer to NCUA regulations at:
www.ecfr.gov/cgi-bin/text-idx?SID=5edb9b65ca8989546e67011954311d55&mc=true&node=se12.7.701_134&rgn=div8
About the Community Development Investment Program
The CDI Program provides capital resources to its member CDCUs seeking funds to increase liquidity, boost net worth, mitigate risk and introduce innovative products. The CDI Program has invested more than $100 million in CDCUs since its inception in 1982.
About the Federation
The National Federation of Community Development Credit Unions is a certified CDFI Intermediary representing community development credit unions that provide credit, savings, transaction services and financial education to more than 5 million residents of low-income urban, rural and reservation-based communities across the United States, and hold over $52 billion in community-controlled assets. Founded in 1974, the Federation is headquartered in Lower Manhattan with offices in Madison, WI. The Federation offers a wide range of advocacy, educational, training, investment, marketing, and outreach programs to support and assist CDCUs. For more information about the Federation and its programs, please visit: www.inclusiv.org.