NCUA Charters Low-Income
Federal Credit Union in Missouri
Alexandria, VA, February 15, 2005 – The National Credit Union Administration (NCUA) chartered Choices Federal Credit Union in St. Louis, Missouri. Choices is a low-income credit union formed to serve employees of eight community organizations and members of a low-income association in the St. Louis area.
Choices Federal Credit Union will serve the employees of Better Family Life, Beyond Housing/Neighborhood Housing Services of St. Louis, Inc., Catholic Commission on Housing, Good Samaritan Service Center, Habitat for Humanity St. Louis, Justine Peterson Housing and Reinvestment Corporation, STEP, Inc., and the Urban League of Metropolitan St. Louis. It will also serve members of Stakeholder Clients’ Association.
The sponsor organizations will provide volunteers, as well as free office space to support the credit union.
“Chartering Choices Federal Credit Union is consistent with the missions of the sponsor organizations to improve the lives of their clients and neighbors. Choices will provide over 94,000 residents in the St. Louis metropolitan area a low-cost alternative to the nontraditional financial services currently offered in their neighborhoods,” said NCUA Chairman JoAnn Johnson. “I commend the credit union organizers for their hard work and dedication to bring this new credit union to fruition.”
Qualified as a low-income designated credit union entitles the institution to receive low-interest loans through NCUA’s Community Development Revolving Loan Fund, accept non-member deposits and receive free technical assistance from NCUA. To receive the special designation, the credit union organizers had to establish that a majority of potential members have a median household income less than 80 percent of the national household income or they make less than 80 percent of the average for all wage earners.
NCUA staff facilitated the chartering of Choices Federal Credit Union; working with organizers to ensure the credit union meets NCUA’s safety and soundness requirements. As a federal credit union, Choices Federal Credit Union will be insured by NCUA, offering its members up to $100,000 in coverage on accounts backed by the full faith and credit of the U.S. government.
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