Ailing CDCU Pushes for More Donations
San Francisco's deeply troubled Mission SF FCU, which embarked on an unusual fundraising campaign to keep it from collapsing, said Wednesday it may opt for a merger after all if it is unable to raise $200,000 by March 15 or perhaps sooner.
So far the $6.7 million community development CU, which serves a low income Latino member base suffering the economic malaise, said NCUA has already given it several waivers to raise the capital funds with $40,000 collected so far from a group of California and New York CUs. .
"NCUA has extended the deadline and we are grateful for that," said Margaret Libby, a director of Mission and head of a CU-managed financial service agency counseling its members.
Mission began soliciting donations from industry groups in December with several large CUs contributing increments as high as $8,500. However, the Mission venture has also come in for criticism from some California CEOs charging that a CU with ill-founded lending policies should not be rewarded.
In a statement issued Monday by the California/Nevada Credit Union League as a service to the CU under the headline CU needs "an angel," Mission acknowledged it is "appealing for help to avoid a merger" and that it is one of two independent CDCUs remaining in California serving a predominately Latino community.
Mission, said the release, "was hit hard by the economic downturn and it must raise $200,000 with half of that due Feb. 15, and the second $100,000 is due March 15."
In forestalling a merger, Mission SF said it seeks "to offer the vital and unique services it has provided to its members and the community for over 40 years."
Libby said the $40,000 raised to date emanates from about a dozen both large and small CUs with some contributions from small CUs in the $500 range. Any contributions raised now can be added to a $20,000 request being submitted by Mission to NCUA for secondary capital which can be advanced to the initial $100,000 goal for Feb.15, she said.