New Investment Round Announced

Announcing a New Investment Round for Secondary Capital

New this round — secondary capital loans of up to $2 MM

The Federation has launched the next round of secondary capital investments to help members expand their innovative credit union products and services. New this round — loans of up to $2 million are available to grow your credit union and serve your members.

Learn how your credit union can use secondary capital to implement high impact community development products at our upcoming webinar.

Register ButtonSecondary Capital: Increase Your Community Impact
Tuesday, June 28, 2016 | 2:00 pm – 3:00 pm ET

Federation secondary capital loans are one of the few sources of capital for credit unions. Greylock FCU, with branches throughout the Massachusetts’ Berkshires, is using Federation secondary capital for its Foreclosure Prevention and Member Relief Program.

This new program targets credit union members who need assistance with their mortgage loans, providing financial education and help with budgeting. This CDI Program investment will free approximately $1 million of Greylock’s own capital to strengthen and grow its community development lending while decreasing delinquencies.

Register today for our Secondary Capital webinar to learn if a Secondary Capital loan from the Federation is right for you. The deadline for applications is July 22, 2016.

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 types of secondary capital loans products – Secondary Capital I which includes an expected balloon repayment of principal, and Secondary Capital II, which includes expected repayments of amortized principal.

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 $2 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, 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 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:

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:

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