Press
CUNA Mutual Group Deposits $1.25 Million for Community Investment
Jim Buchheim
608.665.6327
jim.buchheim@cunamutual.com
Rick Uhlmann
608.665.8940
rick.uhlmann@cunamutual.com
Funds Available to 3 California Credit Unions for Development in Underserved Areas
MADISON, Wis. – Three community development credit unions in California have received an interest-free, $1.25 million deposit from CUNA Mutual Group to stimulate development in their underserved areas.
The zero-interest deposits to credit unions from CUNA Mutual Group are part of the California Department of Insurance’s California Organized Investment Network (COIN). Since 1997, the COIN program has spurred insurer investment in underserved and rural communities throughout California by providing modest tax benefits and fair returns to investors.
The three community development credit unions each received one or two deposits of $250,000 and have the discretion about where to spend the investments in their areas to encourage community development. In return, CUNA Mutual Group and other investors in the program receive tax credits for their participation.
The three credit unions participating include Northeast Community FCU, San Francisco; Faith Based FCU, Oceanside, Calif.; and the California operations of Self-Help FCU, an affiliate of Self-Help Credit Union, Durham, N.C.
“This pilot program for CUNA Mutual Group is a win for everyone involved,” said Cami Douglas, VP, Corporate Tax, CUNA Mutual Group. “It helps us live out our mission of helping credit unions and their members and gives credit unions the opportunity to provide loans or other support to small businesses and non-profits in economically disadvantaged communities.”
In a press release, California’s insurance commissioner, Dave Jones, called out several insurers and financial institutions for their participation in the COIN program.
“Today, we thank UnitedHealthCare, Blue Shield of California, CUNA Mutual Group and CSE for stepping up to the plate and making major community development investments,” Jones said.
The COIN program allocates $2 million annually in tax credits to support $10 million in community development investments. Under the COIN tax credit program, investors invest a minimum of $50,000 as equity or a zero-interest loan with a Community Development Financial Institution (CDFI) for 60 months. In exchange, the investor receives a state tax credit. The CDFIs use these funds to fulfill their mission, by providing loans or other support to small businesses and non-profits that serve economically disadvantaged communities. After 60 months, the loans are repaid.
CUNA Mutual Group insurance, retirement and investment products provide financial security and protection to credit unions and their members worldwide. With more than 75 years of true market commitment, CUNA Mutual Group’s vision is unwavering: To be a trusted business partner who delivers service excellence through customer-focused products and market-driven insight. More information on the company is available on the company’s website at www.cunamutual.com.
CUNA Mutual Group is the marketing name for CUNA Mutual Holding Company, a mutual insurance holding company, its subsidiaries and affiliates. Life, accident, health and annuity insurance products are issued by CMFG Life Insurance Company. Property and casualty insurance products are issued by CUMIS Insurance Society, Inc. Each insurer is solely responsible for the financial obligations under the policies and contracts it issues. Corporate headquarters are located in Madison, Wis.