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"Invest In Yourself Through Your Community Credit
Union"
 NORTHEAST
COMMUNITY MISSION STATEMENT
Northeast
Community FCU is a Community Development Chartered Credit Union that exists
to meet the unmet savings and credit needs of its membership. As a financial
cooperative dedicated to serving the underserved, Northeast is also an agent
for community revitalization and development within its field of membership
and for the larger community.
OVERVIEW
OF THE CREDIT UNION
Through a combination of credit union member support, grants and nonmember deposits, NECFCU has gradually built up its base of deposits and earnings, to the point that it became a self-sufficient institution in 1988. By achieving self-sufficiency, NECFCU was able to expand its community economic development initiatives that addressed the credit needs of members who wished to start or expand small businesses. Areas of focus included: printing, graphic design, import-export, garment manufacturing, general construction, computer assemblage and a variety of retail businesses that included flower shops, travel agencies and restaurants. Toward these ends, NECFCU was a national pioneer in the making of microenterprise loans to small businesses ignored by mainstream financial institutions.
INVESTMENT
AREA/FIELD OF MEMBERSHIP
NECFCU serves a geographic field of membership that primarily encompasses Chinatown, Tenderloin and South of Market neighborhoods, serving some of the most culturally diverse and densely populated areas of San Francisco.
Within our Investment Area, the median family income ranges from 28% to 75% of San Francisco's median family income, with the vast majority of census tracts falling below 50% of median family income. With over 94% of NECFCU's Investment Area as meeting the CDFI definition of "economic distress", our current and future activities are designed to increase our support of financial products and services in our investment area.
Chinatown - Main Branch
 Chinatown teems with banks, but newer Chinese immigrants often find the shift into the American financial mainstream confusing and alienating. Existing banks cater to more affluent members, with high minimum packages. Small businesses must establish an extensive institutional relationship to secure financing. NECFCU's Chinatown office, located just one block from Chinatown's major commercial corridor, is a very accessible to community newcomers and provides the means for the less affluent to achieve economic self-sufficiency.
Tenderloin Branch
In Contrast to Chinatown, the Tenderloin has no other regulated financial institutions. NECFCU acts as the only mainstream financial service provider in the area. Welfare recipients and other residents of limited economic means are easy prey for makeshift financial operations, which regularly charge exorbitant fees for their services. Average income in this area is less than half of that in the Chinatown area, both of which are below San Francisco's median income level of $99,400 in the 2010 year.
The need for traditional banking and financial educational services is great; only 20% of Tenderloin residents claimed "interest, dividend and net rental income" in the 1990 United States Census. NECFCU aims to free Tenderloin residents from predator financial operations and act as a community-controlled financial and educational institution that allows people to make better use of their money, have more control over their money and begin to climb the economic ladder.
As the last remnants of traditional financial institutions withdrew their support from the Tenderloin neighborhood, NECFCU stepped in to fill this void. Working with a coalition of Tenderloin activists, in conjunction with some large credit unions, throughout 1997 and into 1999, NECFCU opened the Tenderloin Branch office in April 1999. Mayor Willie Brown gave a speech of hope kicking off the opening of our new branch, and since then we have provided over 200 loans in the Tenderloin, totaling over $4 million in credit. Membership in the Tenderloin has increased from 170 members in the first year to 377 today, and demand for our services is still on the increase.
Besides these accomplishments, an important day-to-day role that the branch plays is providing an affordable option to check cashing outlets that dominate the market in the Tenderloin. By offering a safe and comfortable place for cashing of payroll and government checks at a much lower fee, the community has more income at its disposal.
South of Market Branch
Since the grand opening of the SoMA branch of NECFCU Federal Credit Union in June of 2010, it has provided the SoMA community with over 150 bank accounts and 178 loan transactions. Due to the lack of financial institutions in the SoMA neighborhood, the arrival of a community credit union was appreciated by all community members. Partnerships with other community organizations such Asian Neighborhood Design, Sword to Plowshare and Filipino-American Development Foundation Bayanihan Community Center have helped with the growth and success of NECFCU's new branch.
 HISTORY AND
ACCOMPLISHMENTS
Product and Service
Development
Initial financial support for NECFCU came from a Community Services Agency grant. Our early operations were entirely supported by volunteers. With this dedicated group, the credit union grew to $250,000 in assets within a year. A Community Development Block Grant provided additional funding for staff support. By 1983, NECFCU began making loans, including those of small business.
Self-Sufficiency
Through a
combination of credit union member support, grants and nonmember deposits,
Northeast has gradually built up its base of deposits and earnings, to the
point that it became a self-sufficient institution in 1988. By achieving
self-sufficiency, Northeast was able to expand its community economic development
initiatives that addressed the credit needs of members who wished to start or
expand small businesses. Areas of focus included: printing, graphic design,
import-export, garment manufacturing, general construction, computer
assemblage, and a variety of retail businesses that included flower shops,
travel agencies and restaurants. Toward these ends, Northeast was a national
pioneer in the making of microenterprise loans to small businesses ignored by
mainstream financial institutions.
Small Business Lending
Almost since
our inception, we have provided financial assistance for small businesses. In
1990, Northeast developed a cooperative lending venture with the Center for
Southeast Asian Refugee Resettlement (CSEARR). Funded by the Ford Foundation,
this business incubator and loan guarantee program supports the establishment
and expansion of Southeast Asian businesses in the areas of printing,
import-export and garment manufacturing. In recognition of our successes, we
received grant assistance of $160,000 from the Office of Community Services.
In the CSEARR program alone, our financial assistance has exceeded $500,000,
supporting the creation and retention of more than 150 jobs.
Mortgage Lending
In 1988,
Northeast initiated a second mortgage program to assist members, particularly
Target Population Asian American households, in providing financing for their
small businesses or for furthering the vocational or academic education of
their children.
In 1997, Northeast began
to originate first mortgages. In recognition of the member interest in
affordable mortgage financing, Northeast developed a number of mortgage
products for fist time homebuyers, property owners in need of refinancing,
and those in need of home equity loans.
Tenderloin Branch
 As the last remnants of
traditional financial institutions withdrew their support from the Tenderloin
neighborhood, Northeast stepped in to fill this void. Working with a
coalition of Tenderloin activists, in conjunction with some large credit
unions, throughout 1997 and into 1999, Northeast opened the Tenderloin Branch
office in April of 1999. Mayor Willie Brown gave a speech of hope kicking off
the opening of our new branch, and since then we have provided over 200 loans
in the Tenderloin, totaling over $4 million in credit. Membership in the
Tenderloin has increased from 170 members in the first year to 377 today, and
demand for our services is still on the increase.
Besides these
accomplishments, an important day-to-day role that the branch plays is in
providing an affordable option to check cashing outlets that dominate the
market in the Tenderloin. By offering a safe and comfortable place for
cashing of payroll and government checks at a much lower fee, the community
has more income at its disposal.
Direct Deposit
Northeast
introduced this service in August 1999 in an effort to make member's income
more immediately accessible. This service has helped members to avoid fringe
"financial institutions" to cash their checks and to avoid
expensive wire services.
"Fresh Start"
Loans
Having good credit is an important component of "Fresh
Start" Loans" allowing members to start rebuilding their credit
history and get in a habit of saving.
Individual
Development Accounts (IDAs)
IDAs are
matched savings accounts designed to help low-income and low-wealth families
accumulate capital to invest in high return investments such as education or
job training, homeownership, and microenterprise. Individuals save monthly
from their own earned income over a one to four year period and will be
matched on a 2:1 basis by public and private funders. Participants not only
build regular savings habits in the process, but also learn invaluable,
life-long financial skills as part of the program through attending a
required twelve-hour financial literacy workshop as well as first-time
homeowner and microenterprise workshops. For more specific information about
our program call (415) 434-0738.
Links to IDA information on the web:
www.cfed.org (look under
"Individual Assets" and "CSD")
www.alternatives.org
(IDA FAQ)
 PROPOSED NEW DEVELOPMENT
SERVICES
Automated Teller
Machines
Most major
financial institutions utilize electronic banking machines to maximize
efficiency in operations and to increase convenience for the customer.
Northeast plans to install an ATM machine for its members so that they may
access their account during hours when the branch is not open. The ATM will
be able to be accessed at low or no cost to its membership.
Checking Accounts
Checking
accounts will provide an opportunity for our members to keep their cash in
the credit union while still being able to conduct expenditures. The
Tenderloin is mainly a cash-based economy. With cash as the primary form of
transaction in the community, the potential for crime and violence is
increased. Where check-cashing centers are numerous in the Tenderloin,
checking accounts will offer an affordable alternative. Members will be able
to keep their cash in a federally insured institution and manage their money
more carefully by writing checks, especially for major expenses such as rent.
In conjunction with ATMs, the introduction of checking accounts will allow
members to consider the credit union as their primary financial institution.
WHAT MAKES NORTHEAST
COMMUNITY TICK?
Member deposits
provide some of our capital. Public funding in the form of CDFI grants and
Mayor's Office of Community Development grants has also helped. But for the
balance, we depend on nonmember investors who hold over $1,600,000 in
federally insured Certificates of Deposit. They play an important role in our
efforts to return, retain, and build capital in our community.
Click here for membership and non-member details.
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