Callahan & Assoc.: HopeSouth FCU and others share how they use CDFI grants
Tuesday, March 19, 2019
For HopeSouth FCU, CDFI grants build lending and leadership
For the third consecutive year as reported by creditunions.com, the Trump administration has put forth a budget that seeks to eliminate funds for the U.S. Department of Treasury’s Community Development Financial Institutions (CDFI) Fund.
This long-standing program was created by Congress in 1994 and funds are awarded to initiatives at financial institutions that are working to improve social or economic conditions in target markets that typically lack access to traditional financing. As Callahan & Associates’ Marc Rapport reports, “a lot of them [CDFI fund grantees] are credit unions.”
In his article, Rapport spotlights six credit unions and the various ways they use CDFI grants to better their respective communities. Among those interviewed was HopeSouth Federal Credit Union CEO Faye Crocker.
HopeSouth, formerly known as Greater Abbeville FCU, is located in Abbeville, SC and has $20.1M in assets. The credit union has applied for three CDFI grants and received two since earning its certification in 2013. Crocker notes in the interview, that the credit union used the grants to hire an additional loan officer and bolster loan loss reserves to support increased risk-based lending in the community. As a result, HopeSouth grew its auto lending by $2 million (39.8%), personal emergency loans by $1.3 million (74.3%), and membership by 831 (32.2%) from 2013 to 2016.
Now, the credit union is planning for the future as it utilizes a 2018 Leadership Development grant to pay for consulting help on a leadership development and succession plan.
“These steps are very important to making sure HopeSouth remains relevant and available to our low-income, underserved market,” says Crocker.
READ FULL ARTICLE AT CREDITUNIONS.COM »