Demand Weakens For NCUA's CommunityDevelopment Funds

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ALEXANDRIA, Va. - (02/07/06) -- NCUA said demand dropped to a10-year-low for its community development loans, with less than $1million in loans made to low-income credit unions in 2005. NCUAreported it made just seven loans for $919,000 last year, half the$1.8 million lent to 21 low-income credit unions in 2004. Demandfor the development fund's small technical assistance grants alsoweakened, with NCUA awarding 269 TA grants for a total of $946,000,down from 307 grants for more $1.23 million the year before, evenhas the agency was obtaining another $800,000 to fund the program.NCUA is currently reviewing more than 310 requests for TAgrants.

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