Small Dollar Loan (SDL) Program Helps CDFIs Expand Access to Affordable Loans to Communities Historically Underserved by Financial Institutions
SEATTLE, Aug. 5, 2024 /PRNewswire-PRWeb/ -- Verity Credit Union, a leading $859 million asset financial institution in Seattle focused on socially responsible, community-rooted banking, announced today that it has received a $383,223 grant from the Small Dollar Loan (SDL) program administered by the US Treasury. This program empowers Certified Community Development Financial Institutions (CDFIs) like Verity to expand access to mainstream financial organizations for unbanked and underbanked communities, helping them build credit, and providing an alternative to high-cost small-dollar lending.
Verity joins other Community Development Financial Institutions (CDFIs) nationwide in their commitment to partner with communities to develop and provide credit and financial products and services to underserved communities. Verity will utilize the grant to develop a small dollar consumer loan program, offering unsecured loans of up to $2,500, with no prepayment penalty and the opportunity to repay in installments. This initiative builds on Verity's mission to reduce the generational wealth gap, supporting members in establishing credit and managing their finances effectively.
"We are thrilled to receive this grant and continue to empower our members with access to needed financial services and solutions, especially those who have been unfairly targeted by predatory lenders," said Tonita Webb, CEO of Verity Credit Union. "This funding will allow us to provide a vital financial lifeline and equip our community with the tools they need to achieve long-term financial stability."
The addition of the SDL program furthers Verity's commitment to serving the community, expanding the support it offers through its Microgrant Program, Limited Equity Co-op loans, and partnerships with organizations like Zest AI and Business Impact NW. Verity also offers a range of innovative programs and services, including reduced overdraft fees, bicycle loans, solar loans, no-minimum Certificate of Deposit (CD) programs, and small business loans.
ABOUT VERITY CREDIT UNION
Verity Credit Union is one of Washington State's longest-standing credit unions, putting people, the planet, and prosperity for all above the bottom line. Our mission is to make meaningful, positive, and lasting change by partnering with our members and communities to co-create solutions. As a socially responsible financial institution, about 87% of our deposits support the local economy and members with loans big and small to improve the well-being of businesses and individuals, especially those who have been historically left out of the financial system. We are one of the few financial institutions with a Black woman CEO and a leadership team and board that identifies predominantly female, allowing us to embody the change we're working towards. Together, we can create stronger, healthier, more sustainable communities by making people-centric decisions.
Media Contact
Jennifer Karkar Ritche, Verity Credit Union, 1 206-354-8044, [email protected], www.veritycu.com
SOURCE Verity Credit Union
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