The National Federation of Community Development Credit Unions, announced Bank of America has made a $10 million investment in the Federation's Community Development Investment Program.
This funding commitment, Federation explained, will launch a new secondary capital loan product, that will fund investments in “high-performing” credit unions.
The first three recipients of these funds—each of which will receive $1 million—include Freedom First Federal Credit Union ($372 billion, Roanoke, Va.), IH Mississippi Valley Credit Union ($918 million; Moline, Ill.), and Suncoast Credit Union ($6.6 billion; Tampa. Fla.).
“The Federation is thrilled to partner with Bank of America to develop this new secondary capital product to increase services and community development impact in low-income communities,” Federation CEO Cathy Mahon said in a statement. “This infusion of secondary capital into the credit union system will enable several of our high-capacity member institutions to grow their services and increase safe and affordable lending to consumers who might otherwise turn to predatory lenders.”
Barbara Stevens, former CEO of $48 million Houston Metropolitan FCU and chair of the Federation’s Investment Committee, encourages credit unions to apply for Federation’s secondary capital.
“Secondary capital can be used by growing community development credit unions to expand affordable lending to local communities,” Stevens said. “The Federation’s Community Development Investment Program looks forward to deploying Bank of America's investment over the coming year.”
