WASHINGTON-A spending bill passed by Congress last week will set send the funding level for the Central Liquidity Facility, the emergency loan fund for credit unions, at $43.8 billion for 2010, up from $41 billion this year.
The increased funding was approved based on a complicated formula that allows the fund to borrow 16 times its capital. The CLF emerged last year as the key lifeline for CUs lending money to both natural person credit unions and to troubled corporate credit unions through a back-door mechanism devised by NCUA, called CU SIP notes. The funding level allows NCUA to borrow up to $43.8 billion from the Treasury's Federal Financing Bank to fund the CLF's low-interest loans.
Congress also approved another $1.25 million for NCUA's Community Development Revolving Loan fund, the $17-million fund that provides low-interest loans and grants to low-income CUs.
