ARLINGTON, Va.–The National Cooperative Bank (NCB) said it is committing $10 million to the $45 million Southern Equity Fund, a partnership between Inclusiv and the Kresge Foundation aimed at addressing economic insecurity in low-income and communities of color in 17 southern states.
As CUToday.info reported here, The Inclusiv Southern Equity Fund is designed to “promote economic mobility among low wealth and underserved communities, preserve and build diversity in community owned and controlled financial services, and increase the impact of scalable institutions throughout the American South,” Inclusiv said.
Southern states have the highest concentrations of persistent poverty and the highest concentrations of predatory financial services, including payday lenders, Inclusiv noted in announcing the fund.
Where Fund Will Invest
The Southern Equity Fund will make investments of up to $5 million in secondary capital loans to high-impact community development credit unions in some of the regions most distressed and persistent poverty areas.
“NCB has been working with Inclusiv since 2015 in providing secondary capital loans to low-income credit unions in underserved communities,” stated Ann Fedorchak, director of Co-op and Community Development at NCB. “We are very proud to continue this program and help low-income credit unions create meaningful impact in the communities they serve.”