The National Credit Union Administration announced Tuesday that it was awarding a federal charter and share insurance fund coverage to establish the Community First Fund Federal Credit Union in Lancaster, PA.
The credit union will be operated by the Community First Fund, a Community Development Financial Institution. Establishment of the credit union is partially being funded by philanthropist MacKenzie Scott, who has provided $10 million to the group to support its work on racial equity and economic mobility. Scott is the ex-wife of former Amazon CEO Jeff Bezos.
“Supporting underserved communities and providing capital for community development is at the core of the credit union mission, said NCUA Chairman Todd Harper said. “This credit union is opening in a time when the expansion of safe, fair, and affordable financial services and local investment is essential to the nation’s continued economic recovery from the COVID-19 pandemic.”
“It’s a priority of my office to reform the de novo process,” said NCUA Vice Chairman Kyle Hauptman. We can’t credibly talk about ‘access’ and ‘inclusion’ unless we’re doing all that we can do to allow new, stable charters.” He added, “I hope other CDFIs will explore the credit union option, which is one reason we are publicizing this latest successful de novo charter.”
In its mission statement, Community First Fund Federal Credit Union stated it intends to create financial equity through wealth-building opportunities for individuals and families, especially African Americans, Latinos, immigrants, and women, according to the NCUA.
The credit union will serve the community of approximately 550,000 in Lancaster County.