CDCI Funds Creates Sustainability for Third Credit Union to Receive Funds

Thurston Union of Low Income People (TULIP) Credit Union is the only new credit union chartered in Washington State in the last twenty years and among the first wave of credit unions in the U.S. to receive secondary capital funds.

The $75,000 it received from the Community Development Capital Initiative (CDCI) will significantly strengthen the credit union’s already healthy capital position. While these funds are a low interest loan, it is classified as secondary capital and counts to as net worth for regulatory purposes.

The NCUA didn’t authorize any of these funds to go to weak credit unions.

“This is a big deal for a credit union whose capital reached as low as two percent,” said Scott Butterfield, CEO, Credit Union Strategic Planning who volunteered to help the board with strategic planning.

In February of 2010, Secretary of the Treasury Timothy Geithner announced a new program to help two specific types of institutions, community development credit unions (CDCUs) and community development banks certified by the U.S. Department of the Treasury Community Development Financial Institutions (CDFI) Fund, expand their affordable financing and transactional services “to the country’s hardest hit communities.”

As one of the smallest credit unions in the State, TULIP has a staff of one full time manager and one part time member service officer and is assisted by a dedicated board of directors. In 2009, the board altered its mission statement to reflect a focus on sustainability, “The mission of TULIP is to inspire partnership, which reduces poverty by moving low-income people from debt to asset building through education, services and access to capital at fair rates. We balance what’s right for the member with what’s sustainable for the credit union to help the community for generations to come.”

“We work to provide our members a hand up, not a hand out. In order to do that for as many people as possible, we recognized the importance of focusing on sustainability,” said Eric Bowman, Tulip Credit Union, Board Chair.

Tulip has long relied on the support other credit unions and the community. It was launched in 2003 with over a $1 million in non-member deposits by over a dozen institutions, credit unions and foundations.

Operational support, mentorship and oversight have been continued by many credit unions, including BECU, WSECU, Kitsap and O’Bee, during the last two years.

“One of the credit union international operating principles is cooperation among co-op. We are grateful for the support of all the credit unions that helped to start and sustain TULIP.” said Bowman.

Jamie Chase, Principal and Instigator of Goodness, Credit Union Strategic Planning, is known for introducing the PBS program, BizKid$ to the credit union movement and for supporting credit unions in Africa. She is covering the One Conference for CU Insight, while being honored as one of only 25 people in the world to receive the International Development Educator (iDE) Designation.

www.creditunionstrategicplanning.com

Jamie Chase

Jamie Chase

Jamie is the founder of CU Strategic Planning. Annually, she leads the program development of millions of dollars in award-winning CDFI grants. She is one of only 20 individuals designated ... Web: www.creditunionstrategicplanning.com Details