CDCU Insight
An e-publication from the Federation
March/April 2010
Dear members, colleagues and friends:
As many of you know, the Community Development Financial Institutions (CDFI) Fund has gotten unprecedented levels of funding to support the growth and expansion of CDFIs nationwide. With the new Community Development Capital Initiative (CDCI), expected to provide another $200 million to CDFI credit unions and banks, the CDFI Fund has become the game in town in terms of growth capital for community-based lenders.
By this point, you may have participated in one or more of the webinars and conference calls we have held, some in conjunction with NCUA staff and others with CDFI Fund employees, but for those that haven’t been able to join us and those still undecided whether to apply or not, I want to encourage you to submit the CDCI program’s very simple 2-page application by Treasury’s April 30th deadline.
It’s important to note that applying to CDCI does not obligate you to anything. You can always withdraw your request before funds are disbursed.
While there remain several unanswered questions, the CDCI application itself is extremely simple and the basic terms of the program are clear: secondary capital at a 2% rate for 8 years, 9% thereafter only if you keep the funds at that time – which we strongly recommend that you do not.
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