Most Community Development Capital Initiative Investments Remain Outstanding

Government Accountability Office
Thursday, July 14, 2016

A recent GAO report assesses the status of the Community Development Capital Initiative (CDCI). Created in 2010, CDCI is a TARP program intended to help mitigate the effects of the financial crisis on underserved communities. As of March 31, 2016, the Department of the Treasury had 76 percent of the original CDCI investment outstanding and 57 institutions remained. Many of the remaining institutions are financially healthy and likely will be able to repay the investment before dividend and interest rates increase in 2018. In some cases, however, the increase will likely force institutions to reduce community development lending. Currently, Treasury officials have no plans to alter the terms of the program, but plan to continue meeting with CDCI participants to discuss winding down the program.