TXGANIZATION: Texas Cooperative Extension, a nonprofit group, announced Wednesday that it has received a $500-million federal bailout, with the money coming from the Department of the Treasury’s Federal Credit Union Administration (FCUA).
The money will be used to help finance the extension of the cooperative loan program.
The FCUA also will make $250 million available for the Texas Cooperative Credit Union.
The extension will begin in September 2018 and run until 2021.
The cooperative loan extension was one of the programs announced by Texas Governor Greg Abbott to help expand access to credit in Texas.
The Texas Cooperative Development Corp. (TCDC), which operates the cooperative extension program, is responsible for overseeing the loan program, the FCUA said in a news release.
It also will work to increase cooperatives’ access to government assistance, the release said.
“Cooperative extension programs are one of our most important tools to help build new and healthy co-ops and the FCUC has worked hard to ensure that the Texas cooperative extension is the best program for Texas,” said FCUC CEO Scott Gorton in a statement.
“We look forward to continuing to support the Texas cooperatively extension program as it expands to more states.”
The FCUC said that the cooperative development program has helped more than 2,000 cooperatives obtain $100 billion in loans.
According to the FCU, more than $300 million of that money was given to the Cooperative Extension Program.
The loan extension program will continue until 2021, with more money coming annually.
“While the FCUDC is pleased that the FCCC and TCDC have extended cooperative extension assistance, this assistance will be limited to Texas,” Gortons said in the release.
“This loan extension will help Texas cooperators to grow and remain competitive in the marketplace, while also ensuring the long-term financial viability of our credit unions.”
The Texas cooperative credit union extension program was launched in 2008 as part of a $300-million initiative that included expanding access to loans to create more cooperative enterprises.
In 2018, the program received more than 3,200 loans, helping more than 5,000 cooperative enterprises earn $100 million or more in revenue, according to the Texas Department of Financial Institutions.
The program was designed to allow cooperative enterprises to borrow money to expand their businesses.
Since the program’s inception, more cooperatives have been granted credit extensions.
In March 2018, for example, the Cooperative Development Corporation of Texas received a loan of $30 million.