As credit unions look to expand their reach and do more for those they serve, there’s no shortage of templates for success. Take, for example, the following stories features on CreditUnions.com in the past month. Here, readers will find strategies for everything from affordable housing to tackling banking deserts, expanding representation, and more.
Read on for a look at some of the myriad ways credit unions across the country are living their purpose and making an impact.
Tiny House, Big Opportunity
With affordable housing at a crisis point amid rising home prices and ongoing interest rate spikes, Redwood Credit Union ($7.6B, Santa Rosa, CA) has found a way to beat the odds and help more consumers find a home — albeit a modestly sized one.
Through a partnership with Napa Sonoma ADU, the cooperative is writing loans to finance and encourage the construction of accessory dwelling units — or ADUs, sometimes known as tiny houses or “granny flats.” The program is only 18 months old but has already garnered more than 260 inquiries and roughly 50 applications.
Read more in, “Tiny Houses Are Helping Redwood Credit Union Solve A Big Problem.”
Great Lakes Comes To The (Banking) Desert
Great Lakes Credit Union ($1.3B, Bannockburn, IL) is tackling a local banking desert by reducing credit invisibility problems and providing financial services to a broader array of consumers in Chicago’s Austin neighborhood. That work is part of a broader partnership with The Leaders Network, a grant-based collaborative of faith and community leaders working to improve life across Chicago and in its West Side communities, in particular.
Great Lakes CEO Steve Bugg says the credit union’s HUD-certified counseling made the partnership with The Leaders Network a natural fit, and negotiations are underway around opening a small branch to serve Austin-area residents and small businesses, including offering on-site counseling.
Read more in, “Banking Desert? Not So Fast, Says Great Lakes Credit Union.”
A Seat At The Table (Or In The Corner Office)
Although women hold a slim majority of CEO roles at credit unions, they hold barely 16% of the top jobs at credit unions with assets of $1 billion or more. The Wisconsin Credit Union League is working to change that, offering a Women’s Leadership Summit aimed at boosting women’s participation in the industry and increasing opportunities throughout the movement.
The annual event, now in its fifth year, has created a place for women throughout the industry to discuss challenges and opportunities in a safe and welcoming space while networking with women inside and outside of the industry.
Read more in, “Support For Women Leaders In The Badger State.”
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Nusenda Makes A Little Go A Long Way
At Nusenda Credit Union ($4.1B, Albuquerque, NM), a little loan can have a big impact. That’s thanks to the credit union’s Co-op Capital program, which provides microloans as low as $250 to help with everything from starting a business to moving toward energy independence or finding firmer financial footing.
“In a lot of cases, we are giving entrepreneurs access to capital for the first time so they can realize a dream,” says Sara Keller, Nusenda’s vice president of community engagement.
The credit union makes these loans at 5% APR for a 10-year term, and loan amounts can reach $10,000. In the five years since the credit union began, Co-op Capital has made more than 300 loans totaling more than $2 million.
Read more in, “How Is A Microloan Program In New Mexico Reshaping The Small Business Landscape?”
Boosting Liquidity, Benefitting The Community
A new offering at GTE Financial FCU ($2.9B, Tampa, FL) is boosting liquidity while benefitting local charities. The credit union’s business nonprofit checking eliminates or reduces fees on multiple products and services, including remote deposit capture, wire transfers, ACH and treasury management, merchant and payroll services, and more. One option with the account also includes six months of free premium checking and early pay options for employees and board members, plus more.
The idea is to be a one-stop financial shop for nonprofits.
“We can’t help with top-line revenue, but we can help them manage their bottom line so they can do even more for the community,” says Manny Aguilar, GTE Financial’s chief commercial and advisory services officer.
Read more in, “In A Liquidity Push, GTE Financial Rolls Out Business Services Built For Nonprofits.”
Affordable Homes For Heroes
Befitting its roots serving Naval Air Station Jacksonville, VyStar Credit Union ($13.7B, Jacksonville, FL), is taking steps to make it easier for veterans and active-duty military members to find affordable housing. Those efforts are centered around a variety of partnership, including — most crucially — alliances with the USO and Habitat For Humanity.
VyStar’s Military Heroes Mortgage Program launched in late 2021 and has funded approximately $90 million in loans, working to help military members and veterans find housing in a residential market where rents have risen 30% in the past year alone.
Read more in, “A Path To Affordable Homeownership For Military Members.”
Making Entrepreneurship Easier
An effort from Tennessee Valley FCU ($2.5B, Chattanooga, TN) aimed at helping local entrepreneurs start new businesses has generated $5 million in loans since 2016 and expanded the credit union’s commercial customer base.
The credit union’s Idea Leap loan provides small businesses with up to $75,000, with flexible underwriting and speedy approvals. Both of those are crucial, since many small businesses need less than $50,000 to get started – an amount low enough that they often struggle to find funding from venture capital firms or other investors – along with three years of tax returns. Instead, TVFCU requires these applicants to be referred from technical assistance providers in the area, and must agree to work with those mentors throughout the life of the loan.
Read more in, “A Giant Leap For Small Businesses In The Tennessee.”