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Rebirth cu investordeck (1)

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A distributed credit union network in Black churches anchored by Hope Credit Union. To bring #Bankingblack to places where there is no black bank

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Rebirth cu investordeck (1)

  1. 1. REBIRTH CREDIT UNIONNeighbors Helping Neighbors Build Intergenerational Wealth
  2. 2. DISCUSSION POINTS Problem - The Need for Transformation Case Study: Introduction of the Resurrected Life Community Church, UCC RCDC, UCC Details and Finances RCDC, UCC Federal Loan and Change Catalyst Response Introduction The Vision for Change Financial Sources and Uses Statement Pilot Program Contact Information
  3. 3. THE NEED FOR TRANSFORMATION GLOBAL PANDEMIC The COVID-19 pandemic has harmed people of color more than it has white people and further exposed long-standing health and economic inequalities. (Source: CDC) RACIAL RECKONING There is a growing surge of support for #BlackLivesMatter that expresses a call to dismantle structural racism embedded in our economy by creating opportunity. For example, Netflix has committed 2% of its deposits (or $100M) to financial institutions led by BIPOC as part of #BankBlack. (Source: NYT) ECONOMIC CRISIS
  4. 4. We’re invisible and disposable to the traditional banks. They take our money, our deposits, but we don’t get the loans that white churches get, white businesses get. We are dehumanized by traditional lenders. CASE STUDY: RESURRECTED LIFE COMMUNITY CHURCH, UCC led by Pastor Gregory Edwards - Pastor Edwards
  5. 5. Allentown, PA in the Lehigh Valley A United Church of Christ (UCC) congregation Black led, predominantly African American congregation with 200+ members Managing control of Resurrected Community Development Corporation, Inc. and Lehigh Valley's Promise Neighborhoods Consortium About the Church $1.2 million annual revenues from collections + RCDC, Inc. Exceptional Credit: zero late or missed payments on any account Financial History CASE STUDY: RESURRECTED LIFE COMMUNITY CHURCH, UCC 03 led by Pastor Gregory Edwards
  6. 6. Applied through local, white-led lender Didn’t get it; neither did other local non-profits & black businesses Same scenario on PPPs played out nationally, new study shows (Source: Politico) Federal PPP Loan Pastor Edwards spoke to Rev. Dr. Patrick Duggan, Executive Director, UCC Church Building & Loan Fund (CB&LF) Pursued proposal from Faith+Finance to create network of church-based credit union nodes Catalyst for Change CASE STUDY: RESURRECTED LIFE COMMUNITY CHURCH, UCC led by Pastor Gregory Edwards
  7. 7. THE VISION FOR CHANGE 09 Given that the essential cause of poverty in underrepresented communities is intentional underinvestment through historic barriers to capital access, the prime directive of living into God’s economy is to deploy local church assets for mission, and to remove any and all barriers to, and reignite the flow of all resources - including financial capital - in communities that have been historically impoverished. –Rev. Dr. Duggan
  8. 8. Church-based credit union network of micro branches (nodes) Designed to establish church-based credit culture for the un- and underbanked Supply money to capital structure supplies both principal and collateral of share secured loans (deployed initially as small-dollar consumer loans of <$2500) Time and programmatic success will allow for larger loans (i.e., car loans, mortgages ,etc.) Administrative support for nodes provided by Hope Credit Union (well-established national credit union) Rebirth CU helps establish a culture of credit, building on the church's existing capacity and community leadership and a connection between developing intergenerational wealth and reciprocal relationships across class and race. THE VISION FOR CHANGE
  9. 9. SOURCES AND USES STATEMENT *$2,000 Avg Loan Size; 2.5% Loss; 200 Community Members; 250 Avg Deposit Local Member Deposits Community Business Deposit Outside Deposits DAF Invest LLR Grants Other Philanthropy Total Sources of Funds: Lending Capital (Total Loans) Share Secure Collateral Loan Loss Reserves (Pre-funded) Administrative Cost Overhead cost (.25 rate) Consulting Loan Fees (.25 rate) Miscellaneous Total Uses of Funds: 50,000 400,000 450,000 500,000 20,000 30,000 1,450,000 1,450,000 400,000 400,000 20,000 200,000 50,000 160,000 100,000 120,000 Sources uses
  10. 10. Loans for church members and others without bank accounts in Allentown currently subject to predatory pay day lenders who charge exorbitant interest for loans for emergency expenses $500 to $2,500 loans (Share Secure Loans) guaranteed by an equal amount of collateral, provided by affluent people of faith, who are seeking a low-risk instrument to put their money where their mouth is, demonstrating that #BlackLivesMatter As Rebirth CU pilot progresses in Allentown, PA checking, CDs, and other loan types may be added Rebirth CU plans to expand the pilot with other church nodes nationally, linking black and white churches, neighbors investing in neighbors. PILOT PROGRAM Resurrected Life Community Church, UCC.
  11. 11. Cort Gross Kevin Jones in partnership with... Bill Bynum Patrick Duggan Pastor Gregory Edwards CONTACT US Phone: 415-317-4565 Email: Cort@wessven.com Phone: 415-515-0426 Email: Kevindoylejones1@gmail.com Ressurected Life Community Church, UCC CEO of Hope CU UCC CBLF
  12. 12. QUESTIONS? LET US KNOW!

A distributed credit union network in Black churches anchored by Hope Credit Union. To bring #Bankingblack to places where there is no black bank

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