NCUA CHAIRMAN HIGHLIGHTS THE ROLE OF
AMERICA’S CREDIT UNIONS IN THE
“OWNERSHIP SOCIETY”
FOR EMERGING SMALL BUSINESSES
Bronx, New York, April 7, 2005 – America’s credit unions have a pivotal role to play in an “ownership society”, as the not-for-profit financial cooperatives provide their member entrepreneurs with access to affordable credit and capital to grow and expand their small businesses, according to National Credit Union Administration (NCUA) Chairman JoAnn Johnson.
On April 7, Chairman Johnson visited Bethex Federal Credit Union in a predominantly Hispanic underserved community of Bronx, New York. During the visit, NCUA Chairman, joined by Bethex Federal Credit Union CEO Joy Cousminer, toured several of the Bethex’s members’ small businesses. Small businesses highlighted include:
- Irving Enterprise, 11 W. Tremont Ave., Bronx, NY (Auto Insurance Agency)
- RC Miscellaneous Corp., 113 E. Tremont Ave., Bronx, NY (Laundromat and international telephone center for customers to call to their home countries)
- Burnside Beauty & Nail Salon, 35 W. Burnside Ave., Bronx, NY
- Miami Deli, Inc. 2542 E. Tremont Ave., Bronx, NY (groceries and deli produce)
“The visit demonstrated to me, the tremendous difference credit unions are making in communities where access to traditional financial services is limited,” said Chairman Johnson. “Bethex’s record of success on serving their member’s business lending needs is enlightening and we encourage credit unions to make their communities a better place by supporting their members’ entrepreneurial spirit. Credit unions are indeed a vital element in making the ownership society a reality for millions of Americans.”
"Member business loans may be our most important product,” said Cousminer, who leads the $9 million institution. “Healthy businesses are what stabilize and build a community. In our area most businesses don't have a track record, or a shaky one at best. Banks won't take a chance so it's the loan shark or Bethex."
Since joining the NCUA Board, Chairman Johnson has made member business lending a key priority for her regulatory agenda. The Chairman’s leadership on member business lending created a regulatory environment at NCUA that has empowered credit unions with safe and sound flexibility to serve their members, while dismantling unnecessary, burdensome rules.
“While we have made great progress with member business lending regulations, as we move forward as an agency, I will continue to pursue opportunities to enhance NCUA’s member business lending regulations. We need to make sure that credit unions can answer the call to serve their members complete financial needs, especially when members often have no alternative financial partner to start a new business, expand, or create new jobs for their local community,” said Chairman Johnson.
President George W. Bush designated JoAnn Johnson as Chairman of the National Credit Union Administration on May 1, 2004. The President appointed Chairman Johnson to a seat on the NCUA Board in 2002. A former teacher, Chairman Johnson was elected to the Iowa Senate in 1994. Chair of the Senate Ways and Means Committee and the Commerce Committee.
The National Credit Union Administration, governed by a three-member board appointed by the President and confirmed by the Senate, is the independent federal agency that regulates, charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, also operates and manages the National Credit Union Share Insurance Fund (NCUSIF), insuring the deposits of over 83 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions.
|
