Alternatives Federal Credit Union Awarded $2 Million by Community Development Financial Institutions Fund

Bronx, NY and Ithaca, NY – Timothy Geithner, Secretary of the Treasury Department, announced on June 29^th in the Bronx, NY, that the Department’s Community Development Financial Institutions (CDFI) Fund awarded a total of $90 million to 59 community-based organizations across the country.  This “Recovery Act” funding provides critically needed financial products and services to economically disadvantaged people.  

Alternatives Federal Credit Union in Ithaca, New York was awarded $2 million.  The award will support the expansion of Alternatives’ current educational programs.  It will also allow for additional debit consolidation and mortgage refinancing to community residents who have loans at significantly higher interest rates, and may have difficulty obtaining credit elsewhere.

Alternatives CEO Tristram Coffin said, “We appreciate the support shown for CDFIs by our President, Treasury and Congress.  In contrast to the billions given to help failing institutions last year, Alternatives is receiving this award because of our success in helping the community during difficult times.  By further expanding access to banking services, education and capital, we can extend our local recovery to those who are most vulnerable economically.”

Earlier this month, at the Global Financial Literacy Summit, Washington, D.C., Federal Reserve Chairman Ben Bernanke delivered a speech called "Community Development Financial Institutions: Challenges and Opportunities." Bernanke noted: "The current crisis points to the importance of a strong network of healthy community-based organizations and lenders. As many communities struggle with rising unemployment, high rates of foreclosures, and vacant homes and stores, these organizations lead efforts to stabilize their neighborhoods. Rather than pulling back, CDFIs are introducing new products and programs to help communities respond to the crisis."

On the local level, Congressman Maurice Hinchey’s vote for the stimulus package was instrumental in enabling CDFIs to receive funding this year.

###