Van Nuys, CA - VEDC (Valley Economic Development Center) announced today that The National Credit Union Administration (NCUA) has issued a charter to the Pacoima Development Federal Credit Union (PDFCU). The credit union will be the first of its kind in Pacoima, an area long ignored by financial institutions and regularly overcharged by check cashing agencies.

"This project represents the power of partnerships within this community. The reality of a credit union opening in a neighborhood that has been victimized by fringe financial institutions is a testament to those committed to this project for the past five years. Their tremendous effort has resulted in an empowerment opportunity for approximately 200,000 underserved residents, and we are pleased to have worked with NCUA toward gaining approval of this new charter," said Roberto Barragan, VEDC President and CEO of  and driving force behind the creation of the credit union.

One of the PDFCU’s first partners was the City of Los Angeles, committing $200,000 in grants for the credit union. Los Angeles City Council President Alex Padilla says, “It is a great day in the Northeast San Fernando Valley as we welcome the chartering of the Pacoima Development Federal Credit Union.  Pacoima - an area traditionally underserved by traditional financial services outlets. By working with VEDC, the City of Los Angeles is tackling this issue head-on. Not only will the credit union provide much-needed banking services in the area, but we anticipate that it will contribute to the further economic vitality of the area by providing both personal and business loans. We must continue to forge these partnerships to create the best possible environment for both residents and businesses in the San Fernando Valley.”

Congressman Brad Sherman, a member of the Committee on Financial Services of the U.S. House of Representatives, has been an an advocate and has provided critical support. He says of the charter, ““It's great to finally have a credit union in the North-East Valley.  It is often hard to find a depository institution in the North-East Valley, and now we have an institution dedicated to servicing its individual members.  I understand that services will be offered in both English and Spanish, and international remittances can be sent at reasonable costs, "said Congressman Brad Sherman (D-Sherman Oaks, CA).  "Because I serve on the House Financial Services Committee, our office often works with the National Credit Union Administration.  I'm pleased our office could assist the Pacoima Community Credit Union in obtaining its charter expeditiously." The credit union’s primary supporters include, LA Urban Funders (LAUF), Citibank and the Local Initiatives Support Corporation (LISC).

In an ironic twist--the property that will house the credit union was most recently a Pawn Shop. Construction on the site is ongoing with a Grand Opening expected in May of 2005. While the PDFCU awaits its permanent home, they will start operations sometime in March, 2005, at the San Fernando Valley Financial Development Corporation (SFV-FDC) located on Van Nuys Blvd. in Pacoima.

Membership to the credit union will not only be available to residents of Pacoima but to everyone who lives, works, worships, goes to school or owns businesses in the Northeast San Fernando Valley. It will also allow members of the Pacoima Chamber of Commerce and the Valley Industry & Commerce Association (VICA) to join. Of the credit union’s future members Barragan says, "The field of membership is made up of good, hard-working residents who are striving to attain the American dream of homeownership, save for a brighter financial future, and seek financial self-sufficiency without being forced to rely on the pawn-shops and check-cashing outlets which have proliferated in the neighborhoods the Northeast San Fernando Valley. This credit union will give them a chance to see those dreams come true."

 The PDFCU is designated by the NCUA as a federal credit union and as such the National Credit Union Share Insurance Fund (NCUSIF) will insure its deposits for amounts up to $100 thousand dollars.