The Community Development Investment Program makes three major types of investments in CDCUs: deposits, Secondary Capital (equity-like) loans, and grants. By clicking on the products outlined below, you can get detailed information as well as application forms.

On this page:

• Deposits
• Secondary Capital Loans
• Grants

Only Federation member CDCUs in good standing may apply for investment products from the Community Development Investment Program, unless otherwise stipulated. Any credit union with an investment from the Federation must remain a member in good standing for the term of the investment. To be a member in good standing, all yearly membership dues and interest payments must be fully paid. For a full list of eligibility requirements, please click here.

Deposits

The Federation makes two types of deposits:

• Regular non-member/nominee deposits. These are term deposits ("share certificates") that a CDCU can use to make loans to its members, to match deposits from other investors, and/or to generate investment income. Typical non-member deposits are insured and are for $100,000 or less. But if a credit union is financially strong, the Federation may be able to make additional, uninsured "jumbo" deposits or make available "nominee deposits" from other sources.
   
• "Risk-sharing deposits." To help CDCUs achieve greater impact, the Federation offers several kinds of deposits that a CDCU can use as partial collateral against certain types of loans made by credit unions.
  • Micro-Enterprise Collateralization Deposits of up to $25,000 are used to support loans for business purposes.
• Predatory Relief and Intervention Deposits (PRIDEs) help credit unions fight  high-cost "payday," tax-refund, automobile title, mortgage, or other lenders.

• Assistive Technology PRIDEs - for credit unions wishing to make loans to members with disabilities.

Secondary Capital Loans

This is a special type of loan, available only to credit unions with low-income designation from their regulator. A secondary capital loan is long-term (five years or more), and it is counted as net worth on a credit union's balance sheet, thereby helping it achieve the minimum capital standards required by law.

To learn more about Secondary Capital and to access an application, please click here.

Please note: this is a complex product. Be sure to read the full description of secondary capital.

Grants

*The Community Development Investment Program is not currently accepting applications for grants.*  

In addition to specially funded grants, such as the 2004 APPLe & Bridge grants, the Federation has offered two types of grants to CDCUs. However, these grants are temporarily unavailable.

• Equity Grants (temporarily unavailable) build the net worth or equity position of CDCUs, enabling them to bring in more deposits, increase lending, and add new products.

• IDA Matching Grants (temporarily unavailable) help CDCUs match the savings of participants in the credit unions' Individual Development Accounts (IDA) programs. IDA accounts are restricted savings accounts that must be used for specific "asset-building" purposes, such as homeownership, education, or start-up of a small business.