New CDI Program Funding Round Announced
Applications due August 28, 2015
The Federation provides capacity-building capital and investment resources through the Community Development Investment (CDI) Program to support its member community development credit unions (CDCUs) in serving underserved communities.
Federation Investment Round Now Open and Accepting Applications
The CDI Program is now accepting applications for secondary capital loans, PRIDE and Microenterprise deposits. Completed applications for this funding round are due no later than August 28, 2015. All applications are on the Federation’s website, www.cdcu.coop. All credit unions may apply, but only Federation members in good standing may receive funding. Please note that applications for non-member and nominee deposits are accepted year-round and are not subject to the August deadline.
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%.
Only low-income designated credit unions may hold Secondary Capital loans. For more detail about Secondary Capital loans, please refer to NCUA regulations at:
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 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 email@example.com call Cathi Kim at 800-437-8711 or 212-809-1850, ext. 271.
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.