On March 25, the credit union asked people to reply to its Facebook posts with their own posts describing what they like best about living in the 325. Kathy Mayer, marketing director for Abilene Teachers, and her assistant spearheaded the contest for the credit union, contacting local merchants, purchasing gift cards, and organizing gift baskets. The marketing director says she saw a credit union in El Paso celebrate its area code with a 915 day years ago. The concept stuck.

“I can’t say this idea is original,” Mayer says.

“However, what started as a social media campaign to lift up community spirit has evolved into a full-blown civic celebration to encourage residents to get out and support the community they love.”

An Expanding Civic Initiative

The local chamber of commerce joined the planning for 2022, pushing 325 Day to a larger scale.

“This year, we’ve got lots of local vendors involved,” Mayer says.

The celebration, which falls on a Friday, will include live music. Restaurants and boutiques in the downtown area in which the celebration is concentrated are offering specials, one of the three local universities is hosting a baseball game that afternoon, and a new high school will host its pandemic-delayed grand opening that day.

Although the credit union initiated the idea in 2021, it doesn’t insist on retaining control and is pleased the chamber and others have taken such an interest in the idea.

As long as the chamber credits us with having and nurturing the idea, we’re pleased to help it expand with the rest of the community,Mayer says.

Small Budget. Big Impact.

Abilene Teachers was simply looking for a way to spread positivity during a negative time, but its brand has gained significant street cred from 325 Day.

On March 25, 2021, Abilene Teachers asked people to reply to its Facebook posts with their own posts describing what they like best about living in the 325. The initiative has turned into a citywide civic celebration. Watch the video.

“Abilene Teachers Federal Credit Union is now the most recognizable financial institution’s name in the city,” Mayer says.

That’s a decent return on an initiative with no direct costs outside of the gift cards and gift baskets.

Abilene Teachers has sponsored similar drawings in the past to support local businesses, primarily restaurants, asking consumers what their favorite menu item was and randomly picking the winner. But after a while, the credit union ran out of local establishments to recognize and people’s interest waned. Efforts like this, however, gave the credit union experience running contests and made launching 325 Day easier.

This year, Abilene Teachers new ITMs will be available at its busiest branch, and it plans to give away hourly prizes of $32.50 and a daily grand prize of $325 to randomly selected members who make a transaction there on 325 Day.

As far as lessons learned, the credit union expects the initiative to continue to evolve. It plans to work closely with the chamber to encourage participating businesses to register online so there is a single repository for all 325 Day-related events and offerings.

Mayer advises other credit unions to consider similar local days to showcase civic pride.

“I’m surprised more haven’t done this,” she says. “It’s easy to do.”

Beyond 1 Day

Like many cooperatives, Abilene Teachers has traditionally held a training day every fall on either Columbus Day or Veterans Days. As online options and electronic signatures became the norm for annual requirements such as BSA training, this day turned into a motivational speaker event. Three years ago, the credit union asked employees to volunteer four hours with a local non-profit during either holiday. In return, Abilene Teachers pays a full eight hours. Employees get to enjoy a half day with pay; the credit union does something tangible that helps the community.

For this annual day of service, Abilene Teachers’ marketing and human resources teams work together to contact local non-profits throughout the summer and compile a list of four-hour projects. Employees can choose where they volunteer and whether they work on Columbus Day or Veterans Day.

“A lot of our workforce is younger and isn’t familiar with local non-profits or volunteer options,” Mayer says. “It’s a great way for them to learn about community needs and connect with others.”

Partners include the Noah Project for victims of domestic abuse and sex trafficking, the Abilene Zoo, the local Boy Scouts camp, the American Red Cross, a local ministry for homeless families, an animal rescue, and more non-profits across Abilene.

Some of these remain annual projects; others have inspired ongoing volunteer activities.

“On a monthly basis, we assist with sorting clothing, school supplies, and other donations for homeless families,” Mayer says. “The credit union assigns several departments on a rotating basis to supply a volunteer during business hours, when the organization needs the help. For example, in March the administrative staff, the call center, and mortgage lending will each send one volunteer so the whole department isn’t out and member service isn’t compromised.

As schools reopen for in-person volunteers, the credit union hopes to expand these ongoing volunteer opportunities to include reading buddies and mentors.

“The genesis of our credit union was in the schools,” Mayer says. “So, we’d love to be more involved there throughout the year.”

The post How Abilene Teachers Rallied The Community With A Social Media Campaign appeared first on CreditUnions.com.

This is part of the “Anatomy Of A Credit Union” series, presented every quarter by Callahan & Associates. Read more about VSECU or dive into a decade of archives. Contact Callahan to learn about gaining access today.

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Research from Harvard Business school and PR and marketing firm Edelman shows purpose-driven organizations attract employees as well as consumers. Credit unions across the country are leading with purpose to positively impact the lives of their members, communities, and employees here are three stories to serve as inspiration for all.

This is one of three spotlights on credit union impact. Read more about member impact and employee impact.

Going Against Gentrification

Although the dividing line between what is Seattle’s north and south sides is somewhat subjective, the differences, especially as they related to diversity, are clear, says Verity Credit Union ($763.1M, Seattle, WA) COO Justin Martin.

In 2010, the 98118 zip code on Seattle’s south side was the most diverse in the city, according to U.S. Census data. But a light rail station that opened in the zip code in 2009 contributed to a decline in diversity, and by 2020, Census data indicated the zip code was the fourth-most diverse in the Seattle area.

With the light rail comes development, Martin says. With development tends to come gentrification and displacement. The cost of living goes up. All these things can have negative effects on the people who have historically lived in a place and made it a vibrant community.

In 2019, Verity committed to building a branch as part of a mixed-use development project in Seattle’s south side, then jumped at the chance to finance a limited equity housing project in the hopes the model could serve as the future of affordable housing.

Read more in Equity Housing Bridges A North-South Divide.

To learn how Five Seattle credit unions are contributing the final piece of financing for an affordable housing project to serve the city’s residents, read Seattle Credit Unions Invest Together In Affordable Housing.

Better Neighborhoods One Affordable House At A Time

In the aftermath of the Great Recession, State Employees Credit Union ($51.0B, Raleigh, NC) created a CUSO that uses the resources and ethos of the nation’s second-largest credit union to turn foreclosures into single-family rentals and owner-occupied homes.

The property management CUSO is named SECU*RE, and its mission is to rehab SECU’s real estate owned (REO) properties and rent or sell them. The result is less loss to the credit union itself and, just as critically, more affordable housing and less neighborhood decay in the communities in which those houses are located.

As of Jan. 1, 2020, SECU*RE owned 1,546 properties with a market value of $221 million. As of July 1, it was managing 1,302 occupied rental units.

SECU’s creative rethinking of REOs has created better housing opportunities across the Tarheel State and protected the credit union’s investment in those properties.

Read more in Rehab, Rent, Sell: A 3-Part Strategy To Fight Foreclosures.

Support For Small Communities

Since 2015, SECU’s SECU Foundationhas connected college students with leaders in rural communities.

That’s when the foundation created an internship program that places rising sophomore and junior students at 15 North Carolina state universities with local leaders to obtain real-world work experience while giving back to communities. The SECU Public Fellows Intern Program also helps curb the brain drain that occurs when college graduates move from rural areas to larger metropolises.

The concept was to curb that drain, says Jama Campbell, senior vice president and executive director of SECU Foundation, the philanthropic arm of State Employees Credit Union. Let’s get college kids interested in working for nonprofits or government entities in their hometowns or other small, rural communities in North Carolina.

In 2018, the foundation partnered with a nonprofit to extend local government opportunities to recent graduates and for three years has placed high-achieving program participants into community government roles to plug the brain drain.

Read more in Fellows Step Into Local Leadership Roles.

Want more stories of credit union impact? CreditUnions.com has them! Click here to see a selection of stories that highlight strategies, initiatives, products, and services of credit unions making a positive impact for the members and communities they serve.

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Under its member-directed We Care 2 program, VSECU donates $50,000 a year to five nonprofit organizations that provide for the essential needs of people, which VSECU defines as food, shelter, heat, financial literacy, and a sustainable environment. Organizations apply for grants, and VSECU selects five to receive funds. To determine how much each finalist receives, however, the credit union asks members to cast votes during its annual meeting in March.

“Everything we do at VSECU is based in values and, really, based on the community impact idea,” says Simeon Chapin, community impact officer at VSECU. “The cooperative principles are in our DNA, and we’ve layered this idea of sustainable banking on top of that strong foundation. Both of those principles guide how we make choices, how we do strategy, and how we measure our own performance.”

Last year, members directed funding to a community group that provides emergency aid for food, fuel, and primary medical care, a recovery center to combat substance use, a group of youth and adult volunteers who provide basic housing repair services, an emergency shelter for survivors of domestic and sexual violence, and a support group for the resettlement of refugees and immigrants.

“The fact the gift came directly from our neighbors, friends, and supporters at VSECU is a great testament to the community support of refugee resettlement,” says Amila Merdzanovic, director of U.S. Committee for Refugees and Immigrants Vermont.

The agency, formed in 1980, has found new homes for more than 8,000 refugees from war-torn countries such as Bosnia, Iraq, Sudan, Somalia, Syria, and Vietnam. VSECU has played a role in providing financial education, credit advice, and translation services. Several refugee families have even joined the credit union.

“Vermont is generally welcoming to new Americans, who bring so much to our state,” Chapin says. “Currently, the refugee resettlement community is preparing to welcome Afghan refugees who are looking for a safe place to be.”

Hunger relief is another major thrust for VSECU. Since 2018, VSECU has been the lead sponsor and producer of Point to Point , a charitable cycling and running event that raises funds and awareness for the Vermont Foodbank’s mission to fight hunger. The credit union offers employees eight hours a year of volunteer time off to support this event or to participate in other volunteer opportunities in their community.

Home Heating Fuel Discounts

In addition to its community service efforts, VSECU also offers a program called VHeat exclusively to members. Through the program, VSECU partners with several participating fuel dealers for a variety of home heating fuel types to make heating homes and businesses easier and more affordable. Last year, 2,700 members enrolled in VHeat, each saving an average of $343 on their heating fuel costs. The program added up to nearly $1 million in savings in 2020 and $3.3 million over the past four winters.

“We’ve been able to leverage the power of a membership organization to create lower fuel prices,” Chapin says. “That’s money in everyday Vermonters’ pockets to spend on other things that help make their lives better.”

VSECU entered the fuel-buying business when it bought a cooperative group, then expanded the service statewide by bringing in new fuel dealers. Through VHeat, members receive regular fuel deliveries on an automated, convenient, hassle-free schedule. A payment system automatically debits fuel costs from participants’ accounts after each delivery. And just in case a program participant has insufficient funds in their VHeat Clearing account, the credit union automatically covers the amount due via the VHeat Credit Line overdraft protection.

“It’s a win-win for everybody,” Chapin says. “Members get a lower cost on their fuel and guaranteed warmth. The fuel dealer gets a guaranteed market.”

Investing In The Cooperative Movement

VSECU invests in cooperatives to support local communities through a program launched in 2016 called Co-Op Capital . Vermont state law allows state-chartered credit unions to invest directly into other credit unions and cooperatives both inside and outside of Vermont.

The statute enables credit unions to invest equity of up to 10% of their shares, deposits, and surplus into cooperatives, without counting against the 12.25% business lending cap. Investments generally take the form of preferred stock, non-voting shares that can pay a dividend.

Since the inception, Co-Op Capital has invested $148,000 in a worker-owned cooperative herbal clinic , a startup commercial hydroponic greenhouse , and, most recently, the Springfield Food Co-op. A community staple in Springfield, VT, for more than 25 years, the Springfield Food Co-op last year expanded in a new downtown location on Main Street that offered more shelf space, community space, and outdoor seating.

The move cost more than $700,000. The co-op’s 2,300 members, a local community development group, and the private sector funded the venture, but one key investment of $125,000 came from VSECU’s Co-Op Capital fund.

Cooperatives, especially food cooperatives, source from their local communities, the local farmers and serve the local people, Chapin says. That’s really why we have this interest in supporting them.

How Can You Make A Difference?

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VSECU also provides direct donations and grants to community partners. For example, it helped a community group launch a seed capital fund with a $15,000 donation for solar development. As the money is repaid into the fund, it can be used for other community projects. VSECU has already provided funding for homeless youth programs, a homeless shelter, and an incubator program for startup companies serving the energy efficiency market.

The best experiences we’ve had are when we’re able to do more than just make a donation and are able to actually partner with that organization, Chapin says. If we can bring either community volunteer staff or any kind of a loan capital to that program, then we’re able to leverage more of the credit union’s ability.

This is part of the “Anatomy Of A Credit Union” series, presented every quarter by Callahan & Associates. Read more about VSECU or dive into a decade of archives. Contact Callahan to learn about gaining access today.

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Top-Level Takeaways

• Five Seattle credit unions are contributing the final piece of financing for an affordable housing project to serve the city’s residents.

• The investment will pay below-market returns on money but above-market value on resources beyond profits.

Seattle has a housing problem. By one estimate, 40% of the city’s residents are considered low income making less than 80% of the area’s median income in a market where rents have risen by one-third in the past decade.

Demand largely driven by workers in the city’s high-paying tech sector has prompted builders to respond with new housing at price points that leave many people behind.

In response, a group of credit unions has just invested $11.1 million in one project to help address the need for affordable housing. They’re providing the final gap in financing needed to kick-start the construction of 277 affordable housing units in a 686-unit mixed-housing development that broke ground on Aug. 31 in the Renton Highlands neighborhood in suburban Seattle.

The cooperatives are BECU ($30.0B, Tukwila, WA), Salal Credit Union ($1.1B, Seattle, WA), Sound Credit Union ($2.5B, Tacoma, WA),Verity Credit Union ($763.1M, Seattle, WA), and Washington State Employees Credit Union ($4.5B, Olympia, WA).

The development, Solera, is the first project of the Evergreen Impact Housing Fund (EIHF), which is managed by the Seattle Foundation. According to the EIHF, the builder, DevCo LLC, already has built 7,700 affordable housing units in the state. Solera is expected to be ready for rent in 2024 for households earning an average $54,000 to $58,000 a year, or 50% of King County’s annual median income.

“Working people who play critical roles in our society — elementary school teachers, grocery clerks, caregivers — cannot afford our region’s skyrocketing rents,” says Kris Hermanns, the Seattle Foundation’s chief impact officer. “This is about providing housing stability and ensuring enhanced equity and economic opportunity across our region.”

A Brand-Building Project That Displays The Movement’s Values

Microsoft has committed $50 million to the EIHF, and the Washington State Housing Finance Commission has awarded Solera $70 million in federal tax-exempt bonds. The federal Low Income Housing Tax Credit (LIHTC) program also is involved.

The final piece is coming from those five credit unions. They’ll make below-market returns on their money, but profit’s not the point.

“The funds are structured as an investment and are expected to return principal and interest over time,” says Ann Flannigan, vice president of public relations at WSECU. “The amount of interest is very low and less than the rate of return we could have otherwise made on an investment like this. Our intent is to incent developers to build affordable housing. Our goal is about community impact, not revenue.”

Flannigan says the area’s economics also contributed to the cooperative’s decision to contribute.

“The Puget Sound region has been among the hottest housing areas in the nation,” she says. “But hot for some means unattainable for others. Gaining access to affordable housing in urban areas has been a brutally difficult challenge for many residents. Joining the collaborative fund was a way for WSECU to help address some of the housing need along with seasoned partners, even if we didn’t have expertise in this arena.”

WSECU contributed $2.36 million to the EIHF, an amount Flannigan says was proportional to the asset size of the individual credit unions and that posed little risk to the cooperative itself.

“The united effort makes a statement,” she says. “Credit unions are showing up and addressing community needs. This is a great project for brand-building and an expression of the value of credit unions as an industry.”

A Sound Investment With Trusted Partners

For its part, Sound contributed $2.5 million to the fund to help bridge the equity gap in the Solera project, says Lyman Williams, Sound’s senior vice president and chief lending officer.

“Working with other credit unions on the project is the only way we’re able to make this big of an impact for the community,” he says. “This model of cooperative investing elevates credit unions and demonstrates the effect we can have when we work together.”

Flannigan at WSECU highlights the fact the project involves working with trusted partners both outside the credit union movement for example, the foundation is in charge of the project itself as well as with credit union peers.

“Working together allows us to leverage one another’s strengths and resources to have a greater impact,” she says. “As an interesting aside, when one of the original credit unions needed to pull out, the remaining partners were committed enough that we each contributed a bit more to fill the gap so that it remained a credit union investment.”

Credit Unions Come Together On Financial Challenges

Flannigan says the Solera project is an opportunity to show how credit unions come together to tackle the most relevant and challenging financial issues of our time. It also provides experience for future endeavors.

WSECU has worked collaboratively with other credit unions, primarily in the creation of CUSOs, and Flannigan says her cooperative will be using what it learns here for future opportunities that involve multi-stakeholder initiatives.

This project is one small piece of a much larger problem, but our hope is that it will inspire other business and community leaders to work together to create more affordable housing solutions.

“The investment is the first of its kind for Sound,” Williams says, adding that “the ultimate measure of success will be seeing the project complete and in stable operation.”

“We want to see families occupying the affordable units and the area flourishing,” the Sound lending chief says.

The Solera development is intended to provide safe, affordable housing to working people with modest incomes in a single Seattle neighborhood, but it’s a start.

“This project is one small piece of a much larger problem,” Williams says. “But our hope is that it will inspire other business and community leaders to work together to create more affordable housing solutions.”

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Top-Level Takeaways

• State Employees Credit Union’s Foundation runs a scholarship program designed to help unemployed or underemployed populations access higher paying jobs with real career potential
• A full 56 out of the states 58 community colleges participate in the program.

With 58 community colleges throughout the state, North Carolina boasts one of the largest community college systems in the country. For decades, SECU Foundation has provided two-year scholarships to students enrolling in that vast network, but on the heels of the Great Recession, the organization seized on another opportunity serving the large population of North Carolinians looking to reskill or retool to become more competitive in a challenging work environment.

In 2013, SECU Foundation an arm of State Employees Credit Union ($49.9B, Raleigh, NC) established to address community issues that are beyond the normal scope of the credit union launched its Continuing Education Scholarship Program. Community colleges could access up to 10 $750 scholarships per year to help students pay the costs of class. Five years into the program, the foundation realized a growing number of its scholarships were going untapped.

“We went to our friends in the community college system to understand why these weren’t being used as widely as they once were and what we could do to make it better,” says Jama Campbell, senior vice president and executive director of SECU Foundation.

For six months, the foundation worked with the central system office as well as individual schools to devise a plan to reinvigorate the program. In 2018, it introduced the SECU Bridge to Career program designed to help remove financial barriers for students earning state-regulated or industry-recognized credentials that lead to sustainable wage careers within their communities.

In this QA, Campbell discusses the need for the SECU Bridge to Career program, how it works, and how she grades its success.

Why did you turn the Continuing Education Scholarship program into the Bridge to Career program?

Jama Campbell: In our conversations with the community college system and the individual schools, we determined there needed to be a pathway for wage-sustaining work. That’s the heart of it: These individuals needed the skills to attain higher-paying jobs that have the potential for professional growth. Hence the name.

We are providing careers for people in our communities, and were doing that by doubling our investment providing up to $1 million in funding for this program.

How does the program work?

JC: The program provides each of the 58 community colleges in our state system up to 30 scholarships per year at $500 for certain educational pathways. In addition, we provide the school $3,000 to pay a navigator. So that’s up to $18,000 per school, per year.

A navigator is someone in the community college system who helps with resume writing, interviewing skills, and finding jobs. That’s an important part of this. Its not just about the scholarship, its about having a local person who can help you navigate the job search process.

What are pathways? Why are they a consideration?

JC: The needs in every community are different, and the colleges want programs to help their graduates find new and emerging jobs in their local area. The big ones are healthcare, electrical engineering, truck driving, and public safety, but there could be a new manufacturing plant opening with jobs for people with certain skills or certification. The college could set up a pathway that makes its graduates more competitive for that specific employer.

Because it can be location-based, each year we reach out to all of our 58 community colleges for a list of pathways usually three or fewer or other focuses and how they would use the funding to make them a reality. This program is much more focused on the needs of an individual community than what we offered before.

So, each of those colleges have different needs?

JC: Each of these schools are very different. Some colleges have more resources than others, which can have significant affects. That’s why we’ve tried to gear this program to fit the smaller, more rural community colleges as well as the larger colleges in urban areas. The key is allowing each college to develop their own pathways for students; providing that $3,000 can be an incentive to do this work.

Did you have relationships with all 58 colleges when you started the new program?

JC: The 2018-2019 school year was our pilot year. Instead of onboarding all 58 schools at once, we started with 19 that could help us work out some of the details. We wanted to make sure we weren’t overburdening the schools; we wanted this to be easy and what they wanted.

It took a year for that first cohort of schools to figure out how it all worked and gather some best practices, but they’ve since been able to mentor the schools we’ve added. Each year we’ve added schools, and right now 56 out of the 58 colleges are participating.

Who decides how to allocate the scholarship dollars?

JC: Because its such a large program, the foundation doesn’t choose the recipients. We rely on local decision-making to make it work.

At the start of each year, the community college system sends an RFP to all 58 colleges asking them to participate in the program. The college returns that to the community college systems main office after outlining its plan for the year ahead. When the main office approves a college, we send the funds with the expectation it will report back to us at the end of the year what it accomplished with that money. We are a team of five who do foundation work at the credit union, so we wouldn’t have the bandwidth to do all that ourselves.

Do the colleges tend to use all the available funds?

JC: In any scholarship program there are some dollars that go unused. But these schools know what they’re doing and what works best for them, especially once they’ve been in the program for more than one year. They do a great job using those funds and reskilling individuals in their communities.

Use was one of the main reasons we retooled this program in the first place, but we believe the current iteration is meeting the needs of our community, especially with what is happening in our economy. There are many companies in our state or looking to move to our state, and we want our workforce to be prepared to take advantage of those opportunities when they come.

The beauty of this program is that it gives people, regardless of where they live in the state, a real opportunity to find a career.

How will this program evolve?

JC: Were going to continue to monitor it each year to see how the funds are being used or if there are any tweaks or enhancements we can make. Right now, it is meeting the need. The beauty of this program is that it gives people, regardless of where they live in the state, a real opportunity to find a career.

In the programs first year, Forsyth Technical Community College used every one of its 30 scholarships. It had a pathway focused on electrical line workers, and it was graduating people who came out earning $80,000 or more. That’s a tough job, but its also a job that speaks to many people and allows them to stay in the community of their choice not everyone wants to move to Raleigh or Charlotte.

How do you grade your success?

JC: It can be hard, especially for foundations. We can measure things, but I don’t know that we can really measure the human impact. Our $1 checking account fee is what funds all this work, and we try to make sure we are good fiduciaries of our members dollars.

We want to make sure every investment we make as a foundation is going to multiply. We look at how those schools are using the funds, who is receiving a scholarship, and we want to know what kind of impact its making in their life. The human stories are what is amazing finding people who were unemployed or underemployed and helping them find impactful career opportunities. Its amazing to see how this can impact families and communities. It is an investment for generations to come.

This interview has been edited and condensed.

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Top-Level Takeaways

• Afena FCU is using a five-year, $1 million commitment from a community foundation to underwrite its Bridge the Gap loans that go to borrowers with an average credit score of 411.

• The notes can be for up to five years and monthly payments as low as $35, with an average of $82. Financial counseling and a savings feature are built in.

Afena Federal Credit Union ($80.1M, Marion, IN) is using a $1 million commitment from a local foundation to make a positive impact one Bridge the Gap loan at a time. That’s the name of the program the 7,900-member cooperative launched on Nov. 1, 2020, in partnership with the Community Foundation of Grant County.

The loans are small-dollar, low-interest notes intended to help keep the borrowers away from payday lenders in the near term and by helping to build credit scores and also includes savings and financial counseling elements.

“The foundation agreed to provide $1 million over five years to collateralize the loans, which already are making a difference,” says Karen Madry, Afena president and CEO.

“Families have borrowed money for everything from putting food on their table to keeping their lights on in their homes. Some have borrowed to pay off credit cards and to stop the harassing phone calls,” Madry says. “The program is well received because the monthly payments can be as low as $35 per month, which makes it easy and affordable without causing the member to dig a deeper hole for themselves.”

“Participating in an impact investment like the alternative payday lending program has been on our radar for quite some time,” adds Dawn Brown, Community Foundation president and CEO. “It’s both exciting and timely that we are able to partner with Afena our local Community Development Financial Institution (CDFI) to help our most marginalized families recover from COVID-related financial pressures and plan for a more stable and thriving future.”

“Afena FCU is based in a county that had the third-highest poverty rate in the Hoosier State prior to the pandemic,” she says, “and more than 50% of its members are classified as having either very low or extremely low income, earning less than $35,100 and $21,060, respectively. When the federal poverty level is $26,500, it’s clear these families struggle to make ends meet.”

“These statistics and many more made a great case for the need to develop a program designed to help these families, providing them with a safe place to turn where they are not judged based on their credit score,” she says.

“They’re also trying to keep borrowers away from the storefront lenders, of which there are at least seven in her two-county market, and interest rates can be as high as 400%,” Madry says.

The Real Ability To Pay Back The Loan

“Through June 1,” Madry says, “the credit union has underwritten and funded 84 loans for $187,730. The average loan amount has been $2,234.88, of which $1,489.33 has gone to the borrower in cash and the rest paid out into a savings account. The average interest rate has been 6.81%, ranging between 4.25% and 9%, depending on the length of the loan, which can be from three months to five years.”

“The term is based on the real ability to pay it back without stretching the household budget,” Madry says.

“The recipients have an average annual income of $23,704 and credit score of 411,” Madry says. “That includes 24 borrowers so far who had credit scores of zero. The average monthly payment has been $82 or $20.50 a week.”

“Not only does this help the member have the peace of mind that they can afford the monthly payments, it helps to ensure they’ll make payments regularly, a behavior that can have a dramatic impact on improving their credit score and building fiscally responsible habits,” Madry says.

The Bridge the Gap effort also did not call for any dramatic change in behavior on the part of Afena’s small staff. It aligns closely with what we already were doing every day, Madry says. The only difference is that this program is specifically designed for a group of individuals that need looser underwriting guidelines. It’s closely aligned with our lending philosophy and supports our mission and vision.

Marketing Through Multiple Channels And Partnerships

The Bridge the Gap program is marketed through social media, employers, internal newsletters, and word of mouth.

“With pandemic restrictions being lifted, we’re looking forward to ramping up our marketing efforts by visiting churches and social service agencies that work with families,” Madry says. “Our goal is to partner with as many local businesses as possible to encourage them to provide this information to their staff and clients.”

“That ramping up is part of a relaunch that begins this month with new underwriting guidelines and marketing messages. The marketing had actually been paused in April while the credit union assessed some loan losses.” Madry said “six loans totaling about $9,500 have been charged off.”

“We went into this program knowing we were not going to get it completely right right out of the gate. We anticipated having to modify it as needed to minimize our risk,” Madry says.

“Most of our losses are first payment defaults from new members,” she adds. “It seems that some people have the impression that this is free money’ rather than a loan. With our relaunch we will be limiting the loan amount for new members with very colorful credit to small-dollar loans not to exceed $600.”

How The Loans Are Underwritten

Madry stresses that the Bridge the Gap program is premised on not holding members to standard underwriting rules, but to instead give the members a chance to prove themselves credit-worthy.

“At Afena all of our underwriting decisions are heavily weighted on the member’s motivation. We pride ourselves in listening to our member’s story and understanding their situation,” she says.

The credit union also heavily considers previous payment patterns, the reason for the loan, and the receptiveness to financial counseling. Length of employment also has now been modified to a minimum of two years of continuous employment and at least one year with the same employer, with the exception of March to June 2020 when the county was shut down by the pandemic.

The credit union seeks to ensure the ability to repay by not allowing the borrower’s debt-to-income ratio to exceed 65%, and the relaunch also includes changing the income threshold from 200% of the poverty guidelines to 80% of the area’s median income to allow more families to qualify.

Madry says “denials are mostly because of credit reports that don’t reflect any positive payment trends, trends of accounts being turned over to collections (pre- and post-pandemic), and numerous new credit inquiries and/or newly opened tradelines.”

“We’re experienced at determining if their story matches the credit report,” Madry says.

We’re experienced at determining if their story matches the credit report.

The Bottom Line: The Program’s Goals

“We feel this program will help attract new members in our target market by lending money to people who may not otherwise be credit worthy, improving the financial health of financially vulnerable individuals by improving credit scores, and creating a financial plan for them and monitoring their success,” Madry says. “That will ultimately uplift our community as a whole, while creating life-long members, people who will return to us for future financing.”

Madry says “the goal now is to increase the portfolio to $1 million by the end of 2023 by providing Bridge the Gap loans to 500 low-income individuals or families, attracting 150 new members, and cultivating six-to-nine new community partnerships.”

“Our main objective is to create strong alliances where our community organizations will begin to refer their clients to us. While they provide assistance for their areas of expertise, we can provide financial assistance for both their clients and their employees.”

They’re already seeing some results. “Several organizations have reached out to us recently for strategic meetings to determine how they can partner with us and use this program to help their organizations reach their strategic objectives as it relates to providing financial assistance for their employees and clients,” Madry says.

The post How This Small Indiana Credit Union Works To ‘Bridge The Gap’ appeared first on CreditUnions.com.

Top-Level Takeaways

• Ent Credit Union, Genisys Credit Union, and Corning FCU have offered grants, gift cards, and cold hard cash in addition to PPP loans to help small businesses cope when the coronavirus forced shutdowns.
• These credit unions went beyond business services to engage the communities through local partnerships and social media.

The coronavirus pandemic has delivered a crushing blow to hundreds of thousands of families and business across America.

In response, credit unions have eliminated fees, offered loan payment deferrals, and processed Payroll Protection Program loans for business members and non-members alike. They’ve also sought ways to support small businesses, often in the form of creative promotions and direct help.

Ent Credit Union ($7.1B, Colorado Springs, CO), Genisys Credit Union ($3.3B,Auburn Hills, MI), and Corning Federal Credit Union ($1.8B, Corning, NY) are among the many cooperatives that have responded to the pandemic with ardent supportfor members and communities. Here are their stories.

Ent Credit Union (Hearts) Small Business

CU QUICK FACTS

Ent Credit Union
Data as of 06.30.20

HQ: Colorado Springs, CO
ASSETS: $7.1B
MEMBERS: 399,348
BRANCHES: 40
12-MO SHARE GROWTH: 20.1%
12-MO LOAN GROWTH: 23.9%
ROA: 0.45%

Early in the pandemic, Ent launched We (heart) Small Business, a social media contest that asked community members to name their favorite localbusiness. The public submitted 13,000 nominations and shared what made these businesses great. From there, Ent randomly selected 20 semi-finalists, which a panel of Ent judges narrowed to four finalists.

Competition was fierce, with Ent profiling the finalists on social media and businesses encouraging their own followers to vote. Ultimately, the credit union distributed $50,000 among the finalists $20,000 to an indoor rock-climbing business,$15,000 to a restaurant, $10,000 to a carpentry business, and $5,000 to an escape room business.

Fred Jacobs, Senior Manager of Media Relations and Sponsorships, Ent Credit Union

But the aid didn’t stop there.

We were so impressed with the number of small businesses engaged with the contest that we randomly surprised another 10 small businesses with $5,000 each, says Fred Jacobs, Ent’s senior manager for media relations and sponsorships.

That’s $100,000 in total support.

The winners made thank you videos and let us know how much the money meant to their survival, Jacobs says. There was a lot of synergy in the promotion. It felt good during a very rough patch.

The promotion built on a history of community and business support and helped burnish Ent’s image both in towns where it has an established footprint as well as locals it was just entering. Staying connected to the business community through localchambers and other busines organizations is an important piece of that strategy.

We make sure these entities know that if they hear of a need, we’ll jump in and help if we can, Jacobs says. We lead with listening and education and make ourselves available to any interested business. Hopefully, that leadsto a reputation as an organization that truly cares about its business members.

Genisys Generates Good Vibes With Startup Grants

Some 1,300 miles away just northwest of Detroit and in many of the Motor City’s major suburbs and outlying communities Genisys Credit Union has partnered with Main Street Oakland County (MSOC) to create and fund the Spirit of Main Street micro business startup grant program.

This grant program is designed to complement MSOC economic vitality efforts and support entrepreneurship at the local community level, says Jackie Buchanan, the credit union’s president and CEO. It’s geared for businessesnot more than five years old or preparing to open.

Genisys grants up to $2,500 to go toward activities such as location renovations and preparations, signage, marketing materials and efforts, permits and fees, and more. Recipients must match the grant dollar-for-dollar, although they can include laborand material costs. The local MSOC program handles the disbursement of funds and compliance with grant requirements.

This year, Genisys awarded nine microgrants to restaurants, markets, and a downtown development authority in eight different Oakland County communities. Additionally, the credit union conducted an emergency grant program with one community’s Chamberof Commerce to help that town’s businesses survive forced closures in the spring.

Buchanan says Genisys, which each year sponsors more than 1,200 events throughout its service area, also has been working with local communities to help attract buyers to their existing businesses.

We’ve worked with local chambers, downtown development managers, and city managers to restructure community events following COVID-19 guidelines, the credit union CEO says. These events have provided foot traffic to local businessesduring their most difficult time.

Genisys Credit Union used email to guide businesses to Payroll Protection Plan loans through the suburban Detroit cooperative.

According to Buchanan, the credit union’s support has covered event costs and the organization’s payroll. In cases where events were canceled, the credit union covered prepayments for 2021 events to help them remain viable.

Genisys also participated in the PPP program. The credit union made more than 250 loans for almost $12 million, essentially ensuring more than 1,700 paychecks made it out into the community, Buchanan says. Of course, this is all in additionto a thriving business services operation that currently serves 3,914 members with $124 million in deposits and loans totaling more than $125 million.

How Corning FCU Wins One For The Gaffer

CU QUICK FACTS

Corning FCU
Data as of 06.30.20

HQ: Corning, NY
ASSETS: $1.8B
MEMBERS: 118,384
BRANCHES: 20
12-MO SHARE GROWTH: 19.5%
12-MO LOAN GROWTH: 12.8%
ROA: 0.89%

Corning FCU (CCU) is an SBA lender that also participated in the PPP program and offered loan deferrals to approximately 25% of its 4,000 business account holders.

But that’s not all. CCU and Corning Enterprises, the ceramics and optics maker that’s still based in the region, invested heavily in a Buy Now Shop Later gift cards program that helped stores in Corning’s Gaffer BusinessDistrict stay afloat until they could re-open.

According to Stephanie Carl, the credit union’s director of marketing and digital experience, Corning Enterprises announced in early April it would match all gift card purchases up to $100,000 or through the end of the month, whichever came first.

Stephanie Carl, Director of Marketing and Digital Experience, Corning Federal Credit Union

Amazingly, the match was exceeded in just three days, meaning $200,000 was injected into the local business community, Carl says. Upon hearing the match had been exceeded, CCU pledged an additional $50,000 in matches to keep the momentumgoing.

The credit union announced the added boost at the end of the day on a Friday, and the community hit that mark by the end of the weekend.

From the very start of the pandemic, we had been focused on how we could best support our members, our local communities, and our team, Carl says. This program felt like a perfect match for this focus and also got funds to those businesseswho needed it quickly.

A Facebook post from Corning FCU announces an effort by the credit union to promote local businesses.

Going forward, and beyond the gift of gift cards, the emphasis on serving its active business membership will be continuing in a consultative role, Carl says.

Even beyond the pandemic, we act as a resource for guidance and best practices, Carl says. We’re focused on coaching members through the many challenges that pandemic has brought and will present in the future so their businessesare sustainable. This is a marathon, not a sprint.

4 Ways To Help Local Businesses

Corning FCU, Ent, Genisys offer four best practices to serve small businesses across every community.

Research. Get to know your member and their business, the industry they’re in, and what the prognosis is for that industry

Listen. Listen to your members about local businesses they’re often passionate about their favorites. Then, listen to those businesses to determine their needs.

Communicate. Make sure small businesses know you’re there to provide solutions they need or to guide them to other solutions if it’s not you.

Follow through. Follow up when you say you’re going to follow up.

Share & Download Examples Of Impact

We’re collecting stories and examples of how credit unions measure impact and sharing them with the industry through our Policy Exchange. Get access to credit union donated impact reports and measurements and tailorthem to your credit union’s needs.

Already have access? Log in to the portal to access the new Impact Policy Exchange.

LEARN MORE

The post 3 Ways To Step Up For Small Businesses appeared first on CreditUnions.com.

These jobs, however, extend beyond the traditional branch-based positions. That’s because more than 45 of those 267 branches also host call center called Member Services Support at SECU activities. This operational strategy allows SECU to maximize its existing resources and footprint as well as provide employment in economically struggling parts of North Carolina.

SECU has a long history of investing in communities through its support of hospice facilities, teacher housing, and other similar projects. But, Hamrick notes, the credit union is able to provide that support through the SECU Foundation, which is funded from a $1 optional deferred service fee on the credit union’s checking accounts.

This Member Services Support center strategy continues in SECU’s tradition of community support, but it also has a real impact on the credit union’s bottom line.

“Our decision to locate Member Services Support centers around the state and target higher unemployment areas has been more of a strategic business decision,” says Jennifer Hamrick, the credit union’s executive vice president for organizational support. “We were at capacity in our Raleigh location and we had older branches that had third stories we were not using for member daytime traffic.”

So, SECU began expanding its Member Services Support center operation beyond Raleigh in 2009. The credit union tested the concept of remote locations in two branches for a year or so before adding additional locations.

Today, more than 600 of the approximately 7,000 SECU employees work in Member Services Support center jobs, with operations ranging in size from five to nearly 60 employees. There are six separate centers in cities around the Tarheel State as well as staff taking calls routed through the credit union’s VoIP network in approximately 40 other branches in communities large and small. According to Hamrick, callers have no idea their call is not being answered in Raleigh.

And that’s OK. Members conduct their business, Member Services Support center reps have jobs, and the credit union saves money. It’s a benefit to all parties.

“Using our existing branch presence relieves us of the need to build expensive standalone buildings just to answer phone calls,” Hamrick continues. “And we hope targeting these areas for those jobs will result in lower turnover than we experience in urban areas.”

Member Service Support staffers take calls from SECU’s toll-free number as well as online messages. However, managers at local branches oversee the employees’ performance and work schedules, which include night and weekend hours.

“We’re ensuring our members’ needs are met 24/7 while creating jobs in areas of the state that need it the most,” Hamrick says.

Update: Statistical data within this article has been updated for 2019. SECU’s Member Services Support center model continues to evolve as the organization works to enhance and modify its strategy for continued success.

The post A Staffing Strategy With Social Benefits appeared first on CreditUnions.com.

When UFCU created a new role to focus on the cooperative’s community impact, McKissick was a natural fit. That role has grown into a senior vice president position with a broad scope and long-term goals geared toward making a positive and significant impact on the communities UFCU serves.

Here, McKissick talks about marrying business with service, developing the perfect skill set for the role, and measuring long-term success.

What is the focus of UFCU’s senior vice president of community impact? What are your responsibilities?

HM: I’m responsible for everything that is external facing but is not direct member service. For example, our retail, lending, and contact center fall under our member experience team.

Community impact focuses on external functions and has four teams that fall under the business unit. They are marketing and communications; relationship management, which others might refer to as business development; financial health; and social impact.

Each one contributes to UFCU’s overall community impact. Whether it’s working with our SEGs in relationship management, designing financial health programs, or building community partnerships, all of that combined is what we consider community impact.

It’s not just working with nonprofits or employee volunteerism it’s all-encompassing.

What goals do you have for this role? How do those goals fit into the larger organization?

HM: In April of last year, the board signed a motion that pivoted us to become a social purpose credit union. Over time, everything we do will be in service to three impact areas intended to lift our members and broader communities. Each area falls under the general umbrella of financial health, but we’re focusing on them to help the communities we serve become more prosperous. They are:

• Education Specifically, encouraging more residents to graduate with a four-year degree.
• Employment This includes both workforce development and job generation.
• Housing Affordability This is an important need in our area.

Eventually, all our operations will be geared toward helping serve the community in these ways and creating financial health through these vehicles.

Another way to look at it is through our four areas of strategic focus on which we regularly report to the board. They include social purpose, financial health, organizational health, and member experience. Community impact comprises two out of four of those strategic focus areas, or 50% of our corporate scorecard, so it is clear how our team’s efforts fit within the larger organization.

What made you the right person for this position?

HM: Prior to joining the credit union, most of my professional experience was working for nonprofit organizations. Most recently, I led a large, local nonprofit that has trained thousands of community leaders. Credit unions are just another flavor of not-for-profit organization, so my experience in those leadership roles qualified me to help UFCU in this capacity.

I love that I have one foot in the business side, considering what we need to be a safe and sound financial institution, and the other foot in my long-standing career path of serving mission-driven organizations. My previous experience in fundraising, for example, gives me insight into how to truly partner with a nonprofit to make a difference. It’s more than writing a check or giving a donation it’s about engaging all the resources the credit union has to benefit our communities. I’m fortunate to have found a role that allows me to bring my business skills and my not-for-profit heart to the job.

Job titles say as much about the organization as they do the person. The “What’s In A Name” series on CreditUnions.com dives into notable, important, interesting, or just plain fun roles to find out what’s happening at the ground level and across the industry. Browse the whole series only on CreditUnions.com.

What does your job description look like?

HM: This job is largely based on partnerships both internal and external. I can build external partnerships all day, but I need internal support to ensure those initiatives are successful. Effective internal partnerships create the excitement needed to support external partnerships.

I also make sure we are using the credit union’s strengths to meet the community’s needs, which also requires partnering with the right people internally and externally.

Who do you report to? Who reports to you?

HM:I report to the CEO. I have four direct reports, one for each of the areas I oversee. There are senior managers responsible for the financial health and relationship management teams. Marketing has a director for its much larger team. And, a social impact manager oversees that focus area.

What’s your daily routine?

HM: I spend approximately 50% of my time internally and 50% externally building relationships with community leaders. There are a lot of nonprofits in Austin, and we actively participate in the local chamber of commerce, speaking engagements, and employee volunteer opportunities. It’s a wide variety of things, but it’s all about connecting the credit union to the communities we serve.

We consider the number of scholarships we’ve given, but our real goal is to increase first generation college graduation rates in Texas.

How do you track success in your job?

HM: We have a lot of programmatic metrics that we track around financial health. For example, how many scholarships have we given, how many members have enrolled in our savings habit program, etc.

However, our real community impact is not measured over the short term. We’re going to measure that over a long period of time. Today, we consider the number of scholarships we’ve given, but our real goal is to increase first generation college graduation rates in Texas. We’ll have to wait to see that those scholarship recipients do graduate and evaluate how our participation has helped move the needle in the community overall.

What do you do to stay current with topics that fall under your role?

HM: Beyond keeping up with the latest news, direct engagement and active partnerships with our SEGs and community nonprofits keeps us up to date.

For example, we serve all the universities including our founder University of Texas in our market. One of the first things I did after moving to the community impact role was to interview every president at each of the universities to learn about their strategic priorities and how we could help them. We got a great picture of what was meaningful and looked for common themes to help us set our priorities.

Now that it’s been two years, I’m preparing to go on another listening tour to learn what’s changed. By maintaining direct, professional relationships with leaders and members, we’re able to stay in tune with exactly what they need and understand where we can have the greatest impact.

This article has been edited and condensed. 

The post What’s In A Name: Senior Vice President Of Community Impact appeared first on CreditUnions.com.