NCUA Media Advisory

New Capital Program Open to Credit Unions

NCUA to Set Guidelines for Participation

February 3, 2010, Alexandria VA. - Credit unions 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, which was first announced by President Barack Obama in October, were finalized today by the Treasury Department. Participation is open to financial institutions, including low-income credit unions that have been designated as Community Development Financial Institutions, and its funding will be available under the Troubled Assets Relief Program (TARP).

In response to the anticipated interest in the program, the NCUA Board will consider an interim final rule later this month that would set forth guidelines for participation.

NCUA Chairman Debbie Matz applauded the program, stating that "this is a bold and innovative proposal that will provide significant benefits to low-income credit unions as they strive to find new ways to reach consumers in disadvantaged communities. Now that the program has been unveiled, the NCUA Board will move with all appropriate speed to develop a rule that enables qualifying credit unions to make full use of this program. I am confident that credit unions will see the promise and possibilities in this initiative, and will utilize the new funding to enhance service to those who need credit unions the most."

Program details are attached and will soon be available on NCUA's website at http://www.ncua.gov/Resources/CreditUnionDevelopment/Files/2-3 cdfi fact sheet L PDF (2).pdf.

The National Credit Union Administration is the independent federal agency that regulates charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, also operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of over 90 million account holders in all federal credit unions and the majority of state-chartered credit unions.

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