Roanoke, VA-based Freedom
First Federal Credit Union, has won the $100,000 NEXT
Seed Capital Award from Opportunity
Finance Network (OFN) to introduce the American Dreamer Loan
product, which will provide Roanoke-based immigrants financing they need
to apply for citizenship. This is the first loan program of its kind in
the area.
Freedom First developed its American Dreamer Loan product to offer
affordable, responsible financing to help local refugees, as well as
immigrants who are legal permanent residents, apply for citizenship. The
cost of naturalization services can range from approximately
$2,500-$5,000, and many refugees and immigrants struggle to find
financing to cover these high costs. In partnership with Commonwealth
Catholic Charities and local law firms, the loan program will help
approximately 30 refugees and immigrants complete the naturalization
process and apply for citizenship in its first year. Refugee and
immigrant groups living in the area with large populations include
Somali Bantu, Vietnamese, Bosnians, Croatians, Cubans, and Iraqis.
Dave Prosser, VP of Community Development at Freedom First, explained
that many applicants get stuck when they cannot afford the legal costs
of applying. “In this country, immigration law is complex and many
newcomers require personal guidance, along with legal and financial
assistance, to successfully navigate the U.S. citizenship process. We
recognized a need in our community to offer low-cost loans to help
credit-challenged immigrants pay the costs associated with obtaining
citizenship. Hence, our idea for the American Dreamer Loan was born.”
Freedom First Federal Credit Union is a nonprofit community development
credit union that provides affordable, equitable financial and
development services to its members. It is the largest certified
community development financial institution (CDFI) in Virginia. Freedom
First is committed to financial inclusion by providing members with the
products, services, and education they need to achieve financial
independence.
Mark Pinsky, President and CEO of Opportunity Finance Network and member
of the NEXT Seed Capital Award selection committee, praised Freedom
First’s creativity, “As the nation grapples with complex immigration
challenges, Freedom First is leading the way with an innovative solution
for the large and important immigrant market. This is another example of
what CDFIs do best—fitting responsible and affordable financial products
and services to the unique needs of the communities they serve.”
Each year through 2016, the no-strings attached $100,000 NEXT Seed
Capital Award will go to one CDFI with a promising idea for expanding
its products and services to serve more low-income people and
communities. This award is made by OFN as part of the Wells
Fargo NEXT Awards for Opportunity Finance. Wells
Fargo provides the generous funding.
“There is significant need for this new product, which will help make
citizenship accessible to more immigrants in Virginia, and could be
replicated nationally,” said Lesley Eckstein, executive vice president
and head of Community Lending and Investment at Wells Fargo. “We are
proud to support the NEXT Awards, Freedom First Federal Credit Union,
and its American Dreamer Loan product, which provides financing to
low-income people and families who are on the path to citizenship and
may not have access to the resources they need.”
In addition to the loan component of the program, Freedom First will
offer financial education to applicants to help them develop the skills
to build assets while simultaneously working with qualified partners to
achieve their goal of citizenship.
About the Awards
The Wells Fargo NEXT Awards for Opportunity Finance celebrate the
CDFI industry—its creativity, accomplishments, and enduring importance.
Launched in 2007, the NEXT Awards have celebrated the innovation of the
nation’s most promising CDFIs by awarding more than $50 million through
a competitive awards process over the last six years.
It is the nation’s largest awards program for CDFIs and in 2013 will
award $8.35 million dollars through two award pools—The NEXT Opportunity
Award and the NEXT Seed Capital Award to high-performing CDFIs to expand
their coverage strategies. Each year the NEXT Awards culminates in a
ceremony at OFN’s Annual Conference to spotlight Awardees and the entire
CDFI industry.
About the Groups Behind the Awards
Wells Fargo & Company (NYSE: WFC) is a nationwide,
diversified, community-based financial services company with $1.4
trillion in assets. Founded in 1852 and headquartered in San Francisco,
Wells Fargo provides banking, insurance, investments, mortgage, and
consumer and commercial finance through more than 9,000 stores, 12,000
ATMs, and the Internet (wellsfargo.com),
and has offices in more than 35 countries to support the bank’s
customers who conduct business in the global economy. With more than
270,000 team members, Wells Fargo serves one in three households in the
United States. Wells Fargo & Company was ranked No. 25 on
Fortune’s 2013 rankings of America’s largest corporations. Wells
Fargo’s vision is to satisfy all our customers’ financial needs and help
them succeed financially. Wells Fargo perspectives are also available at blog.wellsfargo.com.
The Kresge Foundation is a $3 billion private, national
foundation that works to expand opportunities in America’s cities
through grantmaking and investing in arts and culture, education, work
in the environment, health, human services and community development
efforts in Detroit. In 2012, the Board of Trustees approved 410 awards
totaling $130.5 million; $150.3 million was paid out to grantees over
the course of the year. For more information, visit kresge.org
The John D. and Catherine T. MacArthur Foundation supports
creative people and effective institutions committed to building a more
just, verdant, and peaceful world. In addition to selecting the
MacArthur Fellows, the Foundation works to defend human rights, advance
global conservation and security, make cities better places, and
understand how technology is affecting children and society. MacArthur
has been a leading supporter of the Opportunity Finance field since the
early 1980s, investing nearly $250 million in approximately 100 groups
nationwide. More information is available at: www.macfound.org.
About Opportunity Finance Network (OFN): OFN, the leading
network of private financial institutions, creates growth that is good
for communities, investors, individuals, and the economy. Members of OFN
are community development financial institutions (CDFIs) that deliver
responsible lending to help low-wealth and low- income communities join
the economic mainstream. Through 2011, OFN’s Network originated more
than $30 billion in financing in urban, rural, and Native communities,
and financed 940,000 housing units, 83,000 business and
microenterprises, and 9,000 community facilities. More information is
available at: www.opportunityfinance.net
ABOUT FREEDOM FIRST
Since 1956, Freedom First Credit Union has provided affordable,
equitable financial and development services to its members and the
Roanoke and New River Valley communities. Freedom First is a nonprofit
community development credit union owned by its members and dedicated to
developing sustainable solutions to persistent community challenges.
With assets of more than $300 million, 9 branch locations, and 47,000
members choosing to “bank for good,” Freedom First is the largest
Community Development Financial Institution in Virginia. For more
information, please visit www.freedomfirst.com.
Copyright Business Wire 2013