Public Welfare Investments for Federal Savings Associations

This Community Developments Fact Sheet explains how Federal Savings Associations (FSA) may make community development loans, equity investments in real estate to further community development, investments in service corporations, and other community development investments of the type permitted for a national bank under 12 CFR 24 (collectively, public welfare investments). Consistent with 12 CFR 101, an FSA that has elected to operate as a covered savings association is treated as a national bank for purposes of public welfare investments. Covered savings associations are subject to the requirements of 12 CFR 24, including the same authorization, terms, submission requirements, and conditions (including the limits on the total amount of such investments) as national banks.