CDCUs Seek TARP Cash
NEW YORK-The National Federation of CDCUs joined the Community Development Financial Institutions Coalition in urging the Treasury Department to set aside $1 billion for cash infusions into CDFIs.
Low-income, CUs may accept secondary capital, and are eligible for the Treasury's Troubled Asset Relief Program.
The plea comes as the prospects of getting TARP cash for mainstream credit unions continue to dwindle.
"Congress has expressed its concern that little of the first wave of TARP investments in banks seems to be finding its way to the communities and families most in need," said Clifford Rosenthal, president of the CDCU group. "We in the CDFI movement believe that our institutions are uniquely positioned to aid some of the hardest-hit communities around America, and that moreover, we can leverage any federal funding many times over."
Under NCUA rules, only credit unions qualified as low-income- about 1,000 total-are eligible to accept secondary capital.
Connecticut CUs Kick Off Student Loan Program
HARTFORD, Conn.-So far, 11 CUs have agreed to join a new student loan program launched by credit unions in partnership with Gov. Jodi Rell.
The program, which offers loans 20% guaranteed by the state to in-state students at colleges and universities, will begin Dec. 8. The rate for students deferring payment will be 6% and for those not deferring payment 5.75%.
The Connecticut CU League, which coordinated the CUs' participation, will provide some underwriting guidelines on the loans and to administer and track the program. Participating credit unions include: 360 FCU, American Eagle FCU, Capitol Region FCU, Charter Oak FCU, Connecticut State Employees CU, Connex CU, General Electric CU, Dutch Point CU, Ledge Light FCU, Nutmeg State FCU and Sikorsky Financial CU.
