CREDIT DEVELOPMENT (FEDECACES)

THE LOAN WILL BE USED BY FEDECACES TO EXTEND SUB-LOANS TO ITS MEMBER CREDIT UNIONS. THE CREDIT UNIONS IN TURN WILL EXPAND THEIR SUB-SUB-LOANS TO INDIVIDUAL CREDIT UNION MEMBERS. THE SUB-SUB-LOANS, AVERAGING $200 EACH, WILL INCLUDE; 1. PERSONAL LOANS TO REFINANCE USURER DEBTS, PURCHASE HOUSEHOLD AND PERSONAL EFFECTS, IMPROVE HOUSING, PURCHASE MEDICAL AND DENTAL SERVICES, PAY FOR EDUCATIONAL EXPENSES, AND OTHER PERSONAL EXPENSES; AND 2. FIXED AND WORKING CAPITAL LOANS TO VERY SMALL ENTREPRENEURS, SMALL FARMERS, SHARECROPPERS, ARTISANS, COTTAGE INDUSTRIES, SMALL INDUSTRIES, AND SMALL COMMERCIAL ENTERPRISES. LOANS WILL ALSO BE MADE TO THE CREDIT UNIONS THEMSELVES TO FINANCE ADMINISTRATIVE IMPROVEMENTS, OFFICE SPACE, AND OFFICE EQUIPMENT. GRANT FUNDS WILL PROVIDE TECHNICAL ASSISTANCE TO FEDECACES THROUGH A CONTRACT WITH THE CREDIT UNION NATIONAL ASSOCIATION. GRANT FUNDS WILL ALSO SUPPORT FEDECACES OPERATIONAL COSTS AND PARTICIPANT TRAINING. FEDECACES WILL ALSO PROVIDE TECHNICAL ASSISTANCE AND MANAGEMENT SEMINARS IN ALL ASPECTS OF CREDIT UNION ADMINISTRATION TO ITS MEMBERS. ADDITIONALLY, TECHNICAL ASSISTANCE WILL BE PROVIDED TO SMALL FARMERS AS PART OF THE SUPERVISED AGRICULTURAL PRODUCTION CREDIT PROGRAM. CREDIT UNION MEMBERSHIP SHOULD INCREASE FROM 10,000 TO 30,000 LOW-INCOME FAMILIES (BOTH URBAN AND RURAL) BY THE END OF 1973. AS A RESULT OF THIS PROJECT, MEMBER FAMILY INCOME SHOULD RISE FROM $712 TO $863 PER YEAR.