Announcing a New Funding Round for Secondary Capital
Applications will be reviewed on a rolling basis through September 28, 2018
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. Secondary Capital loans of up to $2 million are available to launch high impact community development products.
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. A webinar to learn more about Federation Secondary Capital will be held Thursday, August 23, 2018. Sign up here.
The Federation offers two secondary capital loan products:
- Secondary Capital I: The Federation makes Secondary Capital I loans of up to $500,000 with maturities of 5-7 years.
- Secondary Capital II: For qualifying credit unions, the Federation offers Secondary Capital II loans of up to $2 million with maturities of 5-10 years.
How to Apply
All applications are on the Federation’s website, www.cdcu.coop/investment-offerings. All credit unions may apply, but only Federation members in good standing may receive funding. Applications will be reviewed on a rolling basis and applicants are strongly encouraged to submit their completed applications well in advance of the September 28th deadline.
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 firstname.lastname@example.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.
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 $150 million in CDCUs since its inception in 1982.
Secondary Capital has been leveraged to reach new consumers through market and branch expansions, to give existing members increased financial stability and independence, and has promoted asset building through programs like first-time and affordable homebuyer mortgages. In 2017, CDCUs receiving Federation Secondary Capital originated 373,440 loans totaling $6.7B to 1,619,483 members.