Due to inclement weather in much of the country, the deadline for Community Development Investment applications has been extended to Friday, January 10, 2014.
The Federation provides capacity-building capital and investment resources through the Community Development Investment Program (CDIP) to support its member CDCUs in serving underserved communities.
Federation Investment Round Now Open and Accepting Applications
CDIP is now accepting applications for secondary capital loans and PRIDE and Microenterprise deposits. Only Federation members may apply. All applications are available on the Federation's website, www.inclusiv.org. Completed applications are due no later than January 10, 2014. Please note that applications for non-member and nominee deposits are accepted year-round and are not subject to the January deadline.
About Secondary Capital
Secondary Capital is a subordinated loan that can be counted towards a credit union's net worth. Secondary Capital can be leveraged by growing CDCUs to expand safe and affordable lending to local communities. The Federation makes secondary capital loans of up to $500,000 with maturities of 5-7 years and interest rates of between 5%-6%.
Click here to see how Kerr County Federal Credit Union has used secondary capital from the Federation to grow membership, loans and deposits.
Only low-income designated credit unions may hold secondary capital loans. For more details about Secondary Capital loans, please refer to NCUA Regulations, section 701.34 at
www.ncua.gov/legal/documents/ncuaregulationsmanual.pdf.
About PRIDEs
PRIDEs, Predatory Relief and Intervention Deposits, partially collateralize loans that CDCUs make to combat high-cost, predatory lending in their local communities. The Federation shares the member CDCU's risk by assuming the risk on 25% of the loan principal.
PRIDEs of up to $100,000 are available for alternatives to payday lending, auto title lending, assistive technology, and tax anticipation lending. Deposit maturities range from 2 to 4 years. Interest rates are variable; please contact the Federation for current rates.
About Microenterprise Deposits
Microenterprise deposits partially collateralize microbusiness loans to expand CDCU lending in local communities. Federation Microenterprise Deposits typically collateralize 25% of the loan, sharing the risk between the Federation and the CDCU.
Microenterprise Deposits of up to $25,000 for three year terms are available. Interest rates are variable; please contact the Federation for current rates.
How to Apply
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.
About the Community Development Investment Program
CDIP provides capital resources to its member CDCUs seeking funds to increase liquidity, boost net worth, mitigate risk and introduce innovative products. CDIP currently has over $50 million in assets under management and has invested more than $100 million in CDCUs since its inception in 1982.