Treasury Announces New Funds for CDFI Institutions Posted by AVCU on 10:19 AM

Credit unions designated as “community development financial institutions” (CDFI) will be eligible to participate in a new Treasury Department program aimed at expanding financial institution lending in low-income areas. Details of the TARP Initiative for Community Development Financial Institutions were announced yesterday by the Treasury Department. Participation is open to CDFI-designated financial institutions. Funds will come from the Troubled Assets Relief Program (TARP). The NCUA Board will craft guidelines for participation by CDFI credit unions.

NCUA Chairman Debbie Matz says the program will "provide significant benefits to low-income credit unions as they strive to find new ways to reach consumers in disadvantaged communities.” Details of the program are available on NCUA’s website at http://www.ncua.gov/Resources/CreditUnionDevelopment/index.aspx.