OAK HARBOR, Ohio–Commodore Perry FCU here is introducing two new products, including what it says is a one-of-a-kind loan in the U.S., after being awarded an $875,000 grant from Treasury’s Community Development Financial Institutions Fund.
It will use the funds to increase economic opportunities for low-income people in Ottawa County, the credit union said.
The grant will be used to give people in Ottawa County the opportunity to receive access to technical school training, which increases wages in the county by 70%, according to the American Community Survey, the credit union said.
The grant program is in partnership with Terra State Community College, EHOVE, Benton-Carroll-Salem Schools, Port Clinton City Schools and Ottawa County Improvement Corporation, according to the Beacon.
“Commodore Perry exists to help the hard-working people of Ottawa County,” said Mike Barr, president/CEO, in a statement. “As a not for profit, our credit union is committed to helping people to help themselves get to a better place in their lives. Technical certifications create a skilled workforce that attracts new businesses and helps existing businesses to grow, giving low income workers a path to higher wage jobs.”
Commodore Perry FCU said it will also introduce two products not provided by any other financial institution in Ohio: a Wage Replacement Loan and a Career Training Loan.
Overcoming a Barrier
According to the credit union, the products help unskilled workers overcome a barrier to accessing higher wages through technical training, which is they need training to access higher paying jobs, but can’t afford to take time away from a minimum wage job to attend a training program.
“Commodore Perry’s innovative Wage Replacement Loan is a first of its kind in the country,” the Beacon reported. “Financial institutions do not offer a loan to support a consumer in leaving a job or reducing hours. The credit union is additionally offering a Career Training Loan to address the funding barrier to pay for the training.”
Seventy percent of Commodore Perry’s members are low income, earning less than $53,346. According to the United Way of Ohio’s ALICE report, that is not enough for a basic survival budget for a family of four, which is $56,700, the credit union said.
For info: cpfcu.coop/careertraining