Community Development Capital Initiative
The Community Development Capital Initiative, announced in February 2010, makes low-interest loans to smaller community banks, with certain strings attached, such as that the bank lend the funds out instead of hoarding them. The Treasury has converted some of the Capital Purchase Program loans into Community Development Capital Initiative loans for eligible institutions, though the CDCI has also made independent loans. CDCI loans would be preferable to CPP loans, as CDCI have an interest rate of 2 percent, compared to 5 percent for CPP loans.[1]
Press and industry reports say the Obama administration said the program would be capped at $800 million.[2]
The CDCI is considered a TARP program by Treasury. In its monthly TARP reports to Congress, Treasury lists these conversions from CPP to CDCI loans as disbursements under both programs.[3]
| COMMUNITY DEVELOPMENT CAPITAL INITIATIVE |
|---|
| Balance Sheet |
| Disbursed*: $570 million[4] |
| Current outstanding: $570 million[5] |
| Public Funds |
| Maximum at-risk: $800 million.[6] |
| Current at-risk: $800 million.[7] |
* See the methodology and glossary for definitions of "disbursed," etc.
Contents
Funding agency and aid type
The funding agency was the Treasury Department.
The funds were an investment/loan.
Who benefits
Banks (who are able to loan the funds to businesses at a higher interest rate than they are charged by Treasury) and small businesses (who get increased access to capital).
Notes
See also:
- Capital Development Capital Initiative tracking page, ProPublica.org.
- Capital Development Capital Initiative page, U.S. Treasury.
- Archived Community Development Capital Initiative page on FinancialStability.gov
- "OBAMA ADMINISTRATION ANNOUNCES ENHANCEMENTS FOR TARP INITIATIVE FOR COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS" (press release), Feb. 3, 2010.
Articles and resources
Related SourceWatch articles
References
- ↑ OBAMA ADMINISTRATION ANNOUNCES ENHANCEMENTS FOR TARP INITIATIVE FOR COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS (press release), U.S. Treasury, Feb. 3, 2010.
- ↑ "Treasury's Community Development Capital Initiative (CDCI) Resources and Information," National Federation of Community Development Credit Unions and Donna Smith, "Wall St bill speeds TARP wind down," July 21, 2010.
- ↑ "Troubled Asset Relief Program (TARP), Monthly 105(a) Report - June 2011," U.S. Treasury, July 11, 2011. Available at http://www.treasury.gov/initiatives/financial-stability/briefing-room/reports/105/Pages/default.aspx . See Figure 1 on page 3 and note 5 on page 6.
- ↑ "Troubled Asset Relief Program (TARP), Monthly 105(a) Report - June 2011," U.S. Treasury, July 11, 2011. Available at http://www.treasury.gov/initiatives/financial-stability/briefing-room/reports/105/Pages/default.aspx . See Figure 1 on page 3.
- ↑ "Troubled Asset Relief Program (TARP), Monthly 105(a) Report - June 2011," U.S. Treasury, July 11, 2011. Available at http://www.treasury.gov/initiatives/financial-stability/briefing-room/reports/105/Pages/default.aspx . See Figure 1 on page 3.
- ↑ "Treasury's Community Development Capital Initiative (CDCI) Resources and Information," National Federation of Community Development Credit Unions and Donna Smith, "Wall St bill speeds TARP wind down," July 21, 2010.
- ↑ "Treasury's Community Development Capital Initiative (CDCI) Resources and Information," National Federation of Community Development Credit Unions and Donna Smith, "Wall St bill speeds TARP wind down," July 21, 2010.
External resources
External articles
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