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 deposits to credit unions are part of the California Department of Insurance’s California Organized Investment Network. 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 are 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, vice president, corporate tax at 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.”
