The northeast San Fernando Valley’s only credit union has been saved from closure by a sponsorship from the Valley Economic Alliance, a nonprofit based in Sherman Oaks.
The alliance said Tuesday that it has committed $50,000 to supporting the operations of the Pacoima Development Federal Credit Union, which serves nearly 2,000 members and has assets of more than $4 million. It was established in 2005 with the mission of providing bank services to underserved San Fernando Valley communities that are often the target of predatory financial institutions, according to the credit union. Membership is open to Pacoima residents and those who “live, work, worship, go to school or own a business in the San Fernando Valley,” the credit union said.
“The Pacoima Development Federal Credit Union provides a lifeline of desperately needed financial services for an underserved San Fernando Valley community,” Randy Witt, chairman of the alliance, said in a statement. “We are dedicated to improving the economic stability and growth of our region. ... The services offered by PDFCU, including their small business microloans, are a natural fit with the Economic Alliance business services programs.”
The alliance has donated $25,000 to the credit union to date and will contribute another $25,000 by the end of the year, Phillips said. The alliance is looking for fellow sponsors to match its grants, with the goal of raising eight times its sponsorship funds.
“In our lives, we only have a few times to make a really significant difference in the community. This is one of those times,” Kenn Phillips, chief executive of the alliance, said in a statement.