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"Helping to make a
difference in the Northeast San Fernando Valley; Not for profit, not for
charity, but for service" - What started as a dream to provide the
residents of the Northeast San Fernando Valley with access to affordable
retail financial services, has finally become reality with the chartering
of the Pacoima Development Federal Credit Union (PDFCU) by the National
Credit Union Administration (NCUA); the first of its kind for the Pacoima
community.
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PDFCU is proudly
sponsored by VEDC |
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For the past 27
years, Valley
Economic Development Center (VEDC) has promoted
economic development in the San Fernando Valley of Southern
California. Its stated mission is "to be the leading provider of
consulting, training, financing and workforce solutions to the
business community." Headquartered in Van Nuys, with additional
satellites in Santa Barbara, Oxnard, Central Los Angeles, Eagle
Rock, Santa Monica, Glendale and two offices in Pacoima, VEDC
provides financial and technical assistance to the businesses and
workforce community.
VEDC knew that the
Pacoima market was underserved in financial services. There is only
two banks in Pacoima to service 90,000 local residents. Therefore,
VEDC became interested in creating its own bank. In late 2000, VEDC
and Los Angeles Urban Funders conducted a feasibility |
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study for creating a
community development bank in Pacoima. The findings were published
in "Assessing Need for a Community Development Bank in Pacoima" in
October of 2000. The study provided details about the
demographics of Pacoima residents and its business community, as
well as an outline of a community development bank strategy.
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In 2001, VEDC retained Shorebank Advisory
Services (SAS) to continue this feasibility study work. After its site
visit, SAS presented several different options for VEDC to consider:
create a de novo (start-up) community development bank; engage in a
partnership with a large commercial bank to bring a bank presence into
Pacoima; create a bank consortium to raise capital for area businesses,
and/or charter a credit union. Based upon these options, VEDC supported
the establishment of only the second commercial bank in Pacoima in 50
years, a Wells Fargo Bank Branch. VEDC, then, proceeded with the
chartering of a Credit Union on a federal level that would serve these
underserved communities and utilize the provisions of the Federal Credit
Union Act and its regulations that permit a federal chartered credit union
to be designated as low income.
In 2002, the VEDC Board was presented with the
credit union concept. The Board approved VEDC to develop the following
business plan for a credit union strategy. Over the past two years, VEDC
has endeavored to raise the capital and deposit pledges required to secure
NCUA approval.
To learn more about
VEDC’s projects and services visit
www.vedc.org |
