Silicon Valley One - Fall 2007 - (Page 14)

East Palo Alto’s Rev. Paul J. Bains was one of Liotti’s first supporters. “John was willing to put his heart and soul into it.” on launching the new credit union. His natural optimism was severely dented, however, when another application to the National Credit Union Administration was turned down. This blow was accompanied by the further bad news that the final approval might be several years away. “It was time to reconsider,” Liotti says of the aftermath of the turndown. “We knew at some point we were going to run out of goodwill.” A new strategy was needed, and Liotti’s NCUD board began to circulate the notion that the new institution might be constituted as “a credit union within a credit union.” It was at this point in 2006 that Liotti and his team approached Community Trust Credit Union, an institution with branches in Modesto and Riverbank. Originally chartered as the Tri-Valley Credit Union, Community Trust was led by Joe Duran, a CEO who was a friend of Liotti’s and whose work had inspired Liotti’s plans for the East Palo Alto credit union in the first place. Duran is a legendary figure in the credit union world, having won certification as a Community Development Financial Institution. This U.S. Treasury Department designation enabled Duran to receive grants of more than $1.1 million to expand financial education programs and community outreach to low-income local residents, Hispanics and those without access to traditional banking services. Duran’s Community Trust had grown into a bilingual operation serving nearly 100 communities, with 12,000 members and more than $50 million in assets. Community Trust has been particularly successful in providing financial services to thousands of immigrant farmworkers in the Central Valley. It similarly provides financial information and education to thousands through its Money$ense Financial Education program, offering articles in English and Spanish about such aspects of money management as “Payday Loans, Credit at a High Rate” and “Preparing for Your First Home.” The match between Community Trust’s services and the needs of the East Palo Alto community intrigued both Liotti and Duran. The next step was for Liotti and his board to approach Duran with a proposal to operate the new credit union under the Community Trust banner and existing charter. While East Palo Alto would be able to offer Community Trust’s well-tailored services and programs to its own financially underserved population, an East Palo Alto board member would be elected as a Community Trust director. This, according to Liotti, “allows a voice for East Palo Alto.” The new institution’s first employee was hired and sent to Modesto to absorb the nuances of bilingual, lowincome credit union operations. In 2006 Silicon Valley Community Foundation jumped in, investing $100,000 at a highly discounted interest rate. Additionally, it expects to invest as much as $150,000 more in matching funds. A final essential was met earlier this year, ironically, with the closure of a credit union branch in the upscale community of Mill Valley, about 40 miles north. Management offered its ATMs and fixtures to Community Trust East Palo Alto if Liotti would pick up the equipment. In a back room, Liotti marvels at what he calls “a bank branch in a box.” This NCUD office is the space that Liotti will transform into the new Community Trust branch. He is hoping to open as soon as the construction permits arrive and begin by offering checking and savings accounts, check cashing, gas and electric bill payment, and Western Union wire transfer centers. “Lord willing, we really need to make sure this branch is successful,” he says, stepping outside into a sunlit afternoon. “As we succeed, we can help East Palo Alto begin to feel like a real city.” one 14 o n e innovation through philanthropy www.siliconvalleycf.org http://www.siliconvalleycf.org

Table of Contents Feed for the Digital Edition of Silicon Valley One - Fall 2007

From Emmett D. Carson Home Run Back From the Brink Checking In on Corporate Giving Central Valley Air Gets a Breather Why I Give Five Minutes With ... Full Faith and Credit Giving and Receiving What If?

Silicon Valley One - Fall 2007

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