Stanford Federal Credit Union
1500 Page Mill Road
Palo Alto, CA 94306
DRAFT July 12, 2007
CONTACT: Phoebe Wall Howard, 415-246-8794
CREDIT UNIONS IN BAY AREA MAKE HISTORY
For the first time in state history, three large credit unions are partnering on a major reinvestment project that will contribute to economic stability in East Palo Alto.
Community leaders who have worked over the past three years to win state approval will meet at the DLA Piper Law Firm in East Palo Alto on July 18 at 10 a.m. to sign the Memorandum of Understanding that seals the partnership among credit unions and allows the project to move forward. Doors open to the public in September.
The East Palo Alto Credit Union will technically be listed as a branch of Community Trust Credit Union in Modesto because CEO Joe Duran is considered an expert on revitalization and Latino outreach.
City Council Member Ruben Abrica said, “People have historically had to struggle in our young city. We’re hard-working people with obstacles. Anything that is done to empower our community is welcome. This credit union will provide much-needed services.”
The new not-for-profit institution will reinvest all its dollars in the local community, said Mayor David E. Woods. “Conventional financial institutions do not have the flexibility or the will to tailor to the needs of our community. This fills a deep void.”
John Liotti, CEO of the Northern California Urban Development Corporation, led the effort and said, “It has been a long road. This is about making people financially independent rather than victims to predatory lending institutions.”
The project is modeled after successes in Modesto, Calif., Mississippi and North Carolina.
“We know that many people in the community are ‘unbanked’ and lack access to money for purchasing a home or car,” said John Davis, CEO of Stanford Federal Credit Union of Palo Alto.
Stanford Federal Credit Union, which serves 44,000 members of the Stanford community with assets of some $640 million, will mentor community leaders and create a framework for proper policies, procedures and financial goals. It has partnered with two other major credit unions ~ Patelco Credit Union in San Francisco and Addison Avenue Federal Credit Union headquartered in Palo Alto ~ to coordinate efforts and build a $10 million asset base for the project.
Contributing credit unions will donate money for operating capital; invest $100,000 in the new institution’s certificates of deposit at 0% interest for three years, which provides additional operating capital for the project; buy loans; provide performance reviews of the institutional quarterly; and assist with member education. There is an aggressive effort to reach out to credit unions throughout the region to support the unique project.
Loving the San Francisco Bay Area... Community development, urban ministry, trying to defeat poverty, faith, religion, politics, good music, the quest for the perfect pizza, the Yankees, motorcycles... All in a 'day's life'