Advancing Financial Inclusion by Strengthening Credit Unions

About This Guarantee

A $4 million guarantee from the Robert Wood Johnson Foundation will increase Inclusiv’s capacity to provide capital to community development credit unions (CDCUs) that serve communities of color and consumers with low incomes.

Why it was Needed

CDCUs are not-for-profit banking institutions with the mission of serving people and communities with low and moderate incomes and populations with limited access to appropriate financial services. CDCUs accept deposits, make loans, and provide other financial services tailored to their members. Throughout the COVID-19 pandemic and the ensuing economic crisis, CDCUs have been on the front line of responding to the financial needs of families and business owners affected by the pandemic and the economic downturn, which has further exacerbated the longstanding racial wealth gap. Preserving the solvency and viability of CDCUs is critical to ensuring communities have access to appropriate financial services delivered with attention to the unique cultural dynamics of the community.

How it Works

Because of the customer base they serve, some CDCUs can have a more shallow capital base which can be a detractor for investors. Inclusiv provides capital to CDCUs that is tailored specifically for this type of banking institution. The guarantee from RWJF will help Inclusiv attract investors who might not invest without some of their financial risk being mitigated. By helping Inclusiv to attract investors, RWJF is helping to ensure the soundness of this important, neighborhood banking institution.

About Inclusiv

Inclusiv is a certified community development financial institution (CDFI) intermediary that provides capital and other services to its member CDCUs. Inclusiv members serve more than 18 million people and hold over $255 billion in community-controlled assets. Founded in 1974 and with headquarters in New York, the nonprofit is of the belief and mindset that financial inclusion, literacy and empowerment are fundamental rights, and are key to being able to close gaps and remove barriers to financial opportunities for vulnerable and underserved communities. With a mission to assist low and moderate- income people, in achieving financial independence via credit unions, Inclusiv does this by providing capital, connections, capacity building, by developing innovative products and services, and by advocating for member CDCUs.