Two more CDCUs in the works
MADISON, Wis. (12/5/06)--Organizers are working to form new community development credit unions in Michigan and New York.
In Battle Creek, Mich., credit union organizers are aiming to counter payday lenders by opening the Inspire Community FCU to serve low- to middle-income residents (Battle Creek Enquirer Nov 29).
Space has already been leased for the credit union, which hopes to open by April 2007. Organizers also have selected and trained a board of directors, with members of that group currently working to revise the business plan.
The new credit union will offer short-term loans as an alternative to payday lenders, as well as two-year installment loans designed to replace rent-to-own deals. Payday alternatives will be combined with referrals to financial education services.
The W.K. Kellogg Foundation, Battle Creek Community Foundation and Miller Foundation provided $140,000 in seed money. Organizers will soon launch a fund drive to gather $700,000 in grants to equip an office and provide a cushion for operating revenue shortfalls for the first five years. In addition, the group will seek $600,000 in deposits. Kellogg Community FCU and Omni CCU have provided support for organizers, who are awaiting final approval from the National Credit Union Administration (NCUA).
Forest Hill Community House is behind an effort to open a credit union to serve immigrants and low-income residents in the northwest section of the New York borough of Queens (Queens Chronicle Nov. 30).
The proposed credit union would serve anyone who lives, works, worships or volunteers in the areas of Jackson Heights, East Elmhurst, North Corona, Corona and Elmhurst.
Credit union organizers want to provide a full range of financial services, including affordable access to ATMs, mortgages and wire transfers so immigrants could send money to family members they left behind in other countries.
The proposed credit union service area is currently underserved. In East Elmhurst, for example, there are no bank branches and only a single office for obtaining cashier's checks.
In addition, the proposed service area contains many immigrants who often believe they will be turned away if they attempt to use a traditional financial institution. In the Jackson Heights area alone, more than half of the area's residents are foreign-born.
Organizing the new credit union is expected to take at least a year.
More CU/System
News Now LiveWire
- Iowa Gov. Terry Branstad credited Dupaco Community CU for its role in helping an Iowa small business grow and create jobs. - 4 hours ago
- Iowa Gov. Terry Branstad visits Dupaco Community CU, notes CU's role in helping small bizzes grow & creating jobs in state. - 5 hours ago
- Gunman killed Friday in shootout w/ police outside PBC CU, West Palm Beach, Fla., I.D.'d as Christopher Brown, 18. No one hurt inside CU. - 5 hours ago
- In Wash Post article on ?end of Fannie and Freddie,? CUNA?s Hampel says CUNA, CUs are working on contingency plans. http://t.co/bzmi57mY - 6 hours ago
- John Bell, an employee of NC Community FCU, has announced his candidacy for the NC House of Representatives. - 3 days ago
- See all our Tweets and sign up; News Now LiveWire on Twitter
