Demand For Community Development Loans Down

Register now

NCUA said demand dropped to a 10-year-low for its community development loans, with less than $1-million in loans made to low-income credit unions in 2005.

NCUA reported it made just seven loans for $919,000 last year, half the $1.8 million lent to 21 low-income credit unions in 2004. Demand for the development fund's small technical assistance grants also weakened, with NCUA awarding 269 TA grants for a total of $946,000, down from 307 grants for more $1.23 million the year before, even as the agency was obtaining another $800,000 to fund the program. NCUA is currently reviewing more than 310 requests for TA grants.

For reprint and licensing requests for this article, click here.