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Community Development Credit Unions

Alternative Lenders:. Community Development Credit Unions. What is a CDCU?. C ommunity D evelopment C redit U nion A CDCU is a credit union with the mission of serving low-income people and communities. CDCUs are:.

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Community Development Credit Unions

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  1. Alternative Lenders: Community DevelopmentCredit Unions

  2. What is a CDCU? CommunityDevelopment Credit Union A CDCU is a credit union with the mission of serving low-income people and communities.

  3. CDCUs are: • Non-profit and tax exempt (but not a charity) • Cooperatively owned and governed, with one vote for each member • Government-regulated with deposit insurance

  4. CDCUs provide products and services to fit member needs: • Fairly priced loans to members with imperfect, limited or no credit • A safe place to save and conduct other transactions at a reasonable cost • Financial education for members

  5. NFCDCUNationalFederation of Community Development Credit Unions The NFCDCU is a coalition of credit unions dedicated to revitalizing low-income communities. There are 225 CDCUs in 43 states. Two-thirds are in urban settings and one-third are in rural environments.

  6. CDCUs vs. Low Income Credit Unions Low-Income Credit Unions Designation as “low-income credit union” is given by the National Credit Union Association (NCUA) • Give credit unions the right to accept non-member deposits and secondary capital • Serve a narrower field of members, i.e., groups of employees rather than the broader community

  7. CDCUs vs. Low Income Credit Unions CDCUs Designation as a CDCU is given by the National Federation of Community Development Credit Unions (NFCDCU) • The Federation regards all registered CDCUs as CDFIs under the auspices of the CDFI Act. • Currently, there are 80 CDCUs with CDFI certification.

  8. CDCUs • Serve people with disabilities • Have a people helping people philosophy • Fill the need of credit and financing services • to those who do not have access to • mainstream banks and financial institutions Why Partner with a CDCU?

  9. How to find a CDCU For more information on CDCUs and how to locate one in your community: Check the National Federation of Community Development Credit Union’s website at: http://www.natfed.org Go to “About Us” and check the list of “Our Members”

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