ALEXANDRIA, Va. – NCUA reported that demand has completely dried up for loans from its community development revolving loan fund, with no loans made from the $17.5 million fund since May 2010, and almost $14 million in available funds going untapped.
At Sept. 30, the fund was holding $6.5 million in cash and cash equivalents and $7.5 million in U.S. Treasury securities, with just $3.5 million in loans outstanding.
The dearth of lending comes as NCUA is seeking to broaden eligibility for the fund beyond the 1,100 credit unions the agency has qualified as low-income.
The fund is expected to make more than $1 million in small technical assistance grants for 2011.
The fund’s cash horde is an all-time high and 1% loans are at a low since creation of the fund in 1979.
