The National Credit Union Administration (NCUA) recommends that start-up credit unions work with a mentor financial institution, particularly another credit union in a nearby community. These mentors can be a valuable source of informal technical assistance to start-up credit unions. In addition to guidance, mentors may also provide back-office support, such as bookkeeping, recording of transactions, call report submissions, and other tasks.
Listed below are PDFCU’s mentors, whom have provided a valuable source of technical assistance and guidance during this long journey. Together, we are making history and a positive difference in the Northeast San Fernando Valley.
PDFCU thanks its supporters for all their efforts in making this happen!
Wells Fargo Bank
At Wells Fargo, Community Reinvestment is an integral part of the business culture. Wells Fargo has long understood that it can be no stronger, nor more successful, than the neighborhoods and communities where it does business. Supporting communities allows Wells Fargo to better meet the customers’ financial needs and helps Wells Fargo achieve its goal to be one of America’s best banks.
Seeking out opportunities where businesses can contribute to the good of society is embedded in Citigroup’s operating culture. In 2003, Citigroup completed four years ahead of schedule the 10-year, $115 billion commitment made following their 1998 merger announcement to lend and invest in U.S. LMI communities and to small business.
Headquartered in Pasadena, CA, Wescom Credit Union is a $2.5 billion credit union, making it one of the largest credit unions in the country. With a service area that includes Southern California, Wescom’s service groups include SBC, Guess Inc., Mitsubishi Motor Sales of America, MSC Software Corporation, Cox Communications and Ameriquest Mortgage. WESCOM has agreed to serve as a mentor to the proposed credit union and has already provided guidance in a number of areas. A WESCOM Financial Representative reviewed the proposed credit union’s business plan, prior to resubmitting to NCUA for feedback and recommendations. WESCOM representatives also provided guidance about information systems, including the selection of software. Given WESCOM’s sophistication and an operating history that spans eight decades, it is believed that this mentor relationship will be especially beneficial for the credit union.
The Credit Union will continue to receive assistance from the Valley Economic Development Center, which is sponsoring the establishment of this institution. Once the Credit Union is established, Credit Union staff can draw upon the lending and operations expertise of VEDC staff on an as-needed basis. VEDC will also provide financial and in-kind support to the institution and anticipates providing this support for the next three years.
The loan guarantee program, established in November 2001, was designed to encourage local area banks to provide financing to borrowers that cannot qualify for conventional loans. The program benefits both the lenders — by establishing new lending relationships that can become long-term banking clients, and the borrowers — by allowing them to obtain needed financing. Since its’ inception, the FDC has assisted over 45 local area businesses in obtaining a total of $6.8 Million dollars in financing from local banks.
Now with almost 70 years of experience, the California Credit Union League is the largest credit union trade association in the U.S., serving institutions in California and Nevada. Its mission statement is: “Our League enthusiastically supports member credit unions in meeting their members’ needs by providing advocacy, education, information, and leadership.” The League is a helpful resource for identifying mentors, evaluating service vendors, and general assistance in navigating the charter application process. In fact, CCUL’s Rita Fillingame provided the contacts for WESCOM Credit Union, which later led into a mentor relationship. The League’s website (www.ccul.org) could also be used for posting job openings.
Headquartered in New York, the National Federation of Community Development Credit Unions (“NFCDCU”) is a national trade association with a membership of over 200 low-income credit unions and community development credit unions. While the credit union does not provide substantial one-on-one technical assistance, NFCDCU offers regular training seminars and conferences. In 2002, VEDC attended NFCDCU’s Second Latino Credit Union Conference in San Diego. In addition to serving as an advocacy group, NFCDCU also provides deposits, secondary capital, and grants to its membership.