Second CDCU Gets TARP Capital
WASHINGTON – The Treasury Department said it has awarded Genesee Co-Op FCU a $300,000 long-term secondary capital loan, the second credit union named in the program funded by leftover Troubled Asset Relief Program funds.
The eight-year loan can be counted as capital by the Rochester, N.Y., community development credit union under the Treasury’s Community Development Capital Initiative. The funding is considered secondary capital and may be counted under NCUA’s minimum capital rules as net worth for credit unions designated as low-income by NCUA.
Earlier this week, Treasury announced a $4.52 million CDCI investment for Hope FCU of Jackson, Miss.
The two CDCUs are among 20 community development financial institutions winning funding in the initial stages of the program. More investments are expected to be announced next week.
As many as 40 CDCUs have applied for the capital infusions under the CDCI.