NEW YORK–The National Federation of Community Development Credit Unions has launched the next funding round of Community Development Investment (CDI) Program Secondary Capital.
The goal is to expand innovative credit union services to new and emerging markets, the Federation said. Secondary Capital loans of up to $2 million are available to launch high impact community development products, according to the Federation.
“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 said.
A webinar to learn more about Federation Secondary Capital will be held Thursday, Aug. 23, 2018. Sign up here.
The Federation said it is offering 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.
All credit unions may apply, but only Federation members in good standing may receive funding. The Federation said applications will be reviewed on a rolling basis and applicants are strongly encouraged to submit their completed applications well in advance of the Sept. 28 deadline.
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