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Community Partnership Lending
The Community Partnership Loan Program is a way for SCCCU to provide loans to people who might not otherwise be able to qualify for a loan.
Increasing access to capital for under-served people has been at the heart of the SCCCU's mission and we are continually seeking avenues to develop products and services that benefit our members and our community.
This innovative program is a collaboration with community-based organizations. It represents another step in outreach to low-income people in our community while combining the knowledge, experience, resources, and capacity of SCCCU and of each partnering organization.
Our first shared initiative is with the El Pajaro Community Development Corporation (EPCDC), and will provide microenterprise loans to startup businesses working with the EPCDC. EPCDC has more than 20 years of experience in the provision of bilingual/bicultural small business assistance and job creation for primarily minority and low-income entrepreneurs. EPCDC is best known for its successful operation of the Plaza Vigil Business Incubator Program in Watsonville.
How It Works
- The nonprofit affiliate raises funds to support the loans.
- The funds are deposited with SCCCU.
- SCCCU agrees to fund loans to a maximum of double the funds on deposit.
- The nonprofit screens applicants and helps applicants complete the SCCCU business application.
- SCCCU makes all decisions regarding approval or denial of the loan application.
- Loan size is between $2,000 and $5,000.
- Loan terms are between one and two years.
- The fund operates as a revolving loan fund where loan funds are available as loans are repaid back into the fund.
SCCCU has always supported microenterprise through our lending for low-income people and those who otherwise have limited access to capital. Microenterprise is generally defined as small businesses with five or fewer employees, requiring startup capital of less than $25,000. Lending to small businesses is widely viewed as a strategy of poverty alleviation. We are proud to develop innovative programs to increase our lending to small businesses.