rmorales at natfed.org
10-05-2004, 02:41 PM
Contact: Rafael Morales, Communications Officer
212-809-1850 ext. 206
rmorales@cdcu.coop <mailto:rmorales@cdcu.coop>
Credit Unions Regain Seat at Table in 2004 CDFI Awards
(New York, NY - 10-4-04) Last week, the Treasury Department's Community
Development Financial Institutions (CDFI) Fund announced its 2004 Financial
Assistance (FA) and Technical Assistance (TA) Award winners as part of
nearly $59 million in new funding. Community Development Credit Unions
(CDCUs) made their best showing in years, according to Federation Executive
Director Cliff Rosenthal.
"While we always believe credit unions should be receiving a larger portion
of the funding, we are delighted at the improved results of this round,"
explained Rosenthal. "Nineteen CDCUs received awards, as well as four other
credit unions. We were also pleased that affiliates of CDCUs also received
awards, as well as other Federation associates."
Six CDCUs received Financial Assistance awards ranging from $99,000 to $1.42
million, for a total of $3,373,010. In addition to the FA Awards, fourteen
Federation members also received TA Awards totaling $621,445 (maximum size:
$78,640), bringing the total CDCU awards of the two Fund components to
$3,994,455.
One of this round's FA winners was Hacienda Community Credit Union
(Portland, OR), a two-year-old CDCU serving primarily Latino and low-income
residents of the Portland area. When asked how the $99,000 grant would
affect the credit union, Yolanda Karp, President and CEO of Hacienda
Community CU, exclaimed, "Wow, this is a moment of truth! We're very
excited we got this award! We've acquired a good reputation here in the
community, and in all of Washington State, and these funds will allow us to
continue to expand and improve the programs we've started. This really
helps!"
While the TA awards were much smaller, the impact can be quite significant
in expanding CDCU services. One such award recipient, School Workers
Federal Credit Union (Charlotte, NC), plans to use the new funds to offer
Internet banking and online debit cards to their members. Saundra Scales,
President of School Workers FCU commented on the good news, "We are very
excited and really appreciative of the award," said Scales. "We work hard to
try to do what's right and take care of our members; now we can help even
more."
Another TA winner, Buffalo Cooperative Federal Credit Union (Buffalo, NY),
spoke to Federation staff about their award. "We're flabbergasted and
thrilled to have been awarded these funds," said Kelly Mauerer, Treasurer of
Buffalo Cooperative FCU. "These funds will allow us to send some of our
board members and staff for training at the Federation's CDCU InstituteTM.
We will also be able to implement a new and more aggressive financial
literacy campaign, upgrade our computer systems and software, and strengthen
our micro business program."
CDCU FA and TA Award recipients this round included, Alternatives FCU
(Ithaca, NY), Brookland FCU (West Columbia, SC), Buffalo Cooperative FCU
(Buffalo, NY), Bushwick Cooperative FCU (Brooklyn, NY), Communities United
CU (Wichita, KS), Community Choice FCU (Indianapolis, IN), Episcopal
Community FCU (Los Angeles, CA), Food Processors CU (Modesto, CA), Hacienda
Community CU (Portland, OR), Lower East Side People's FCU (New York, NY),
Mission Area FCU (San Francisco, CA), North Country Cooperative FCU
(Minneapolis, MN), Renaissance Community Development CU (Somerset, NJ),
Saguache County CU (Moffat, CO), School Workers FCU (Charlotte, NC),
Stevenson FCU (Stevenson, AL), Syracuse Cooperative FCU (Syracuse,
NY),Vermont Development CU (Burlington, VT), and Women's Southwest FCU
(Dallas, TX).
In addition to the individual credit union awards, Federation affiliates
received $2,528,300 in FA Awards and $76,000 in TA Awards. The largest
affiliate FA award ($2,000,000) went to Self-Help Venture Fund, an affiliate
of Federation Member Self-Help CU (Durham, NC). The largest TA award for an
affiliate ($50,000) went to the Federation of Appalachian Housing
Enterprises, Inc., an affiliate of Federation Member, Appalachian FCU
(Berea, KY).
Four other non-member credit unions also received CDFI Fund TA Awards.
These were KO-AM FCU (Oakland, CA), NEWRIZONS FCU (Hoquiam, WA), Onomea FCU
(Papaikou, HI), and Valley Educators CU (Alamosa, CO).
The Federation also received a $1 million FA Award from the Fund to support
its new CDCU Mortgage CenterTM, a program aimed at helping CDCUs expand
mortgage services to the low-income communities they serve.
While this round was a very successful one for credit unions in general,
there are still improvements to be made. According to the CDFI Coalition,
"The FY 2004 round ranked as the fourth highest amount ever allocated and
awarded under the Financial Assistance or Core program," but even though the
CDFI Fund awarded all available funds to the FA Program for FY 2004,
including amounts carried over from FY 2003, "the average award in FY 2004
of $690,000...was only slightly higher than last year's all-time low of
$680,000." Even with these modest increases, credit union awards only made
up 10.29% of all FY 2004 CDFI Fund Awards, whereas loan funds accounted for
76.47% of the total awards.
***
The National Federation of Community Development Credit Unions represents
225 credit unions serving urban and rural low-income communities across the
United States. Founded in 1974, the Federation is headquartered in Lower
Manhattan and offers a wide range of advocacy, educational, training,
capital, marketing, and outreach programs to support and assist credit
unions.
This post transferred from the cdb-l mailing list
212-809-1850 ext. 206
rmorales@cdcu.coop <mailto:rmorales@cdcu.coop>
Credit Unions Regain Seat at Table in 2004 CDFI Awards
(New York, NY - 10-4-04) Last week, the Treasury Department's Community
Development Financial Institutions (CDFI) Fund announced its 2004 Financial
Assistance (FA) and Technical Assistance (TA) Award winners as part of
nearly $59 million in new funding. Community Development Credit Unions
(CDCUs) made their best showing in years, according to Federation Executive
Director Cliff Rosenthal.
"While we always believe credit unions should be receiving a larger portion
of the funding, we are delighted at the improved results of this round,"
explained Rosenthal. "Nineteen CDCUs received awards, as well as four other
credit unions. We were also pleased that affiliates of CDCUs also received
awards, as well as other Federation associates."
Six CDCUs received Financial Assistance awards ranging from $99,000 to $1.42
million, for a total of $3,373,010. In addition to the FA Awards, fourteen
Federation members also received TA Awards totaling $621,445 (maximum size:
$78,640), bringing the total CDCU awards of the two Fund components to
$3,994,455.
One of this round's FA winners was Hacienda Community Credit Union
(Portland, OR), a two-year-old CDCU serving primarily Latino and low-income
residents of the Portland area. When asked how the $99,000 grant would
affect the credit union, Yolanda Karp, President and CEO of Hacienda
Community CU, exclaimed, "Wow, this is a moment of truth! We're very
excited we got this award! We've acquired a good reputation here in the
community, and in all of Washington State, and these funds will allow us to
continue to expand and improve the programs we've started. This really
helps!"
While the TA awards were much smaller, the impact can be quite significant
in expanding CDCU services. One such award recipient, School Workers
Federal Credit Union (Charlotte, NC), plans to use the new funds to offer
Internet banking and online debit cards to their members. Saundra Scales,
President of School Workers FCU commented on the good news, "We are very
excited and really appreciative of the award," said Scales. "We work hard to
try to do what's right and take care of our members; now we can help even
more."
Another TA winner, Buffalo Cooperative Federal Credit Union (Buffalo, NY),
spoke to Federation staff about their award. "We're flabbergasted and
thrilled to have been awarded these funds," said Kelly Mauerer, Treasurer of
Buffalo Cooperative FCU. "These funds will allow us to send some of our
board members and staff for training at the Federation's CDCU InstituteTM.
We will also be able to implement a new and more aggressive financial
literacy campaign, upgrade our computer systems and software, and strengthen
our micro business program."
CDCU FA and TA Award recipients this round included, Alternatives FCU
(Ithaca, NY), Brookland FCU (West Columbia, SC), Buffalo Cooperative FCU
(Buffalo, NY), Bushwick Cooperative FCU (Brooklyn, NY), Communities United
CU (Wichita, KS), Community Choice FCU (Indianapolis, IN), Episcopal
Community FCU (Los Angeles, CA), Food Processors CU (Modesto, CA), Hacienda
Community CU (Portland, OR), Lower East Side People's FCU (New York, NY),
Mission Area FCU (San Francisco, CA), North Country Cooperative FCU
(Minneapolis, MN), Renaissance Community Development CU (Somerset, NJ),
Saguache County CU (Moffat, CO), School Workers FCU (Charlotte, NC),
Stevenson FCU (Stevenson, AL), Syracuse Cooperative FCU (Syracuse,
NY),Vermont Development CU (Burlington, VT), and Women's Southwest FCU
(Dallas, TX).
In addition to the individual credit union awards, Federation affiliates
received $2,528,300 in FA Awards and $76,000 in TA Awards. The largest
affiliate FA award ($2,000,000) went to Self-Help Venture Fund, an affiliate
of Federation Member Self-Help CU (Durham, NC). The largest TA award for an
affiliate ($50,000) went to the Federation of Appalachian Housing
Enterprises, Inc., an affiliate of Federation Member, Appalachian FCU
(Berea, KY).
Four other non-member credit unions also received CDFI Fund TA Awards.
These were KO-AM FCU (Oakland, CA), NEWRIZONS FCU (Hoquiam, WA), Onomea FCU
(Papaikou, HI), and Valley Educators CU (Alamosa, CO).
The Federation also received a $1 million FA Award from the Fund to support
its new CDCU Mortgage CenterTM, a program aimed at helping CDCUs expand
mortgage services to the low-income communities they serve.
While this round was a very successful one for credit unions in general,
there are still improvements to be made. According to the CDFI Coalition,
"The FY 2004 round ranked as the fourth highest amount ever allocated and
awarded under the Financial Assistance or Core program," but even though the
CDFI Fund awarded all available funds to the FA Program for FY 2004,
including amounts carried over from FY 2003, "the average award in FY 2004
of $690,000...was only slightly higher than last year's all-time low of
$680,000." Even with these modest increases, credit union awards only made
up 10.29% of all FY 2004 CDFI Fund Awards, whereas loan funds accounted for
76.47% of the total awards.
***
The National Federation of Community Development Credit Unions represents
225 credit unions serving urban and rural low-income communities across the
United States. Founded in 1974, the Federation is headquartered in Lower
Manhattan and offers a wide range of advocacy, educational, training,
capital, marketing, and outreach programs to support and assist credit
unions.
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