Capital Assistance Program

DEFINITION of 'Capital Assistance Program '

An element of the financial stability plan launched by the U.S. Department of Treasury to regain confidence in the financial industry. In this program, the U.S. Treasury makes capital available for financial institutions to borrow in order to enable them to continue to serve the public.

BREAKING DOWN 'Capital Assistance Program '

In order to ensure that adequate government funding is available when economic instability hits, the government conducts regular forward-looking assessments to assess how much funding will be needed.