El Futuro Credit Unio

1
El Futuro Credit Union

• The Valleys Best Kept Secret.

2
HISTORY (1966)

• Started by immigrant farm workers with 38
• At present 7 million in assets
• 3200 members 90 at or below the poverty level,
  
• 95 Latino, 70 immigrant.

3
What Type of Financial Institution are we?

• A financial cooperative
• Low income certified community development credit
  union (LICU)
• One of only two in the entire San Joaquin
  Valley. 
• State certified CDFI
• Pending Federal CDFI
• Only three in Valley

4
Banking Services

• Check cashing, share drafts
• Money transfers to Mexico
• Savings and CDs.
• Counseling financial, credit and mortgage
• Loans (low interest rate low term)
• Sig., Auto, Small Mortgage, Micro-business
• emergency.

5
Current Barriers

• Low net worth 6.2
• Low net income
• Bank and Credit Union Competition
• technology, equip, Cap. improvements
• Threats of merger by DFI/NCUA

6
BUSINESS PLAN

• Financial literacy and education
• Asset building, IDA Accounts,VITA
• Anti- predatory loan programs
• Low cost housing, and community development
  projects
• Micro-business programs

7
Current Needs

• Secondary Capital
• 250,000 (leverage 1.75 million in assets and
  provide 2 million in loans and services)
• Direct Funding
• 50, 000 grant to augment net income
• Matching funds for IDA, financial literacy,
  anti-predatory loan and VITA programs
• Capital Improvements
• Technical Assistance
• Upgrade equipment

8
What banks have done for LICUs under CRA

• In 1995 Citibank 1.25 million grant
• 5.9 average NWR
• In 2000 average net worth 10.8 and assets
  increased 228
• Community Trust CU( Florida) 4.2 net worth in
  2000.
• In 2005, 12.8 net worth 5 branches serving
  low income communities 15 million in assets. 
• Banks provide funds for IDAs, ALL funds for Anti
  Predatory loan programs, low cost housing,
  community projects, financial literacy, capital
  Improvements etc.

9
CLOSING

• Opposite of competition is compassion
• Help us do what we know best, help poor people
  build assets.
• Tools to confront poverty
• Problem or Solution