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How Credit Unions Contribute to Community Growth and Development

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3 MIN. READ

Your credit union isn’t just a safe place to stash your savings. It’s also a key player in your local economy. Credit unions fund small businesses and help people achieve their financial goals thanks to their affordable banking products.

Membership in a credit creates possibilities that put you in a position to contribute to the growth of your city and beyond. Here’s what you need to know about community development and credit unions.

A Long History of Serving Communities

Credit unions date back to the 19th century. These institutions were created to make borrowing money easier for those who didn’t have access to traditional banking products by leveraging the power of pooled funds at the community level.

This local focus has continued to define credit unions over the years, and most have a long history of serving the same community. Power Financial Credit Union has been a key player in the South Florida economy since the 1950s!

Over the years, we have grown and expanded the range of services we offer. From checking accounts to personalized investment advice or affordable lending products, our goal is to connect individuals and businesses with banking options that help them thrive.

Our shared history means a lot to us, and we remain dedicated to the success of the South Florida community.

Small Businesses, Community Development, and Credit Unions

For small businesses, borrowing from a major bank can come at a high price—if it's even possible to get approved. As a result, many entrepreneurs turn to alternative methods of financing.

The interests of large banks and small businesses often don’t align. It's why these financial institutions look to offset the risks they take by charging more for their loans.

Because credit unions have strong ties with the communities they serve, helping small businesses benefits them. Plus, loan officers are empowered to consider factors other than a credit score when reviewing applications, which results in a higher approval rate.

Business loans are also more affordable. Credit unions operate with a not-for-profit model, meaning the goal is only to cover operating expenses. If there is a profit, the money goes to members in the form of lower fees. Spending less on loan fees and interest allows small businesses to keep investing and growing.

With close to 62 million Americans working for small businesses, local entrepreneurs are a cornerstone of the economy. Credit unions are crucial to community development by offering affordable financing to these businesses.

Investing in Community Initiatives and Partnerships

Credit unions cultivate strong ties with the local community and embody these values in everything they do.

They often support local initiatives, whether partnering with schools to teach a financial literacy curriculum or donating to non-profits. Credit unions are also employers that create good local jobs.

Power Financial Credit Union is dedicated to helping the community at large thrive and succeed. That's why we work with the Jason Taylor Foundation. Our shared goal is to improve South Florida youths' access to education, health care, and a good quality of life.

Our other initiatives include sponsoring several annual events for Big Brothers Big Sisters of Miami. We also wish to recognize the meaningful impact our employees have, whether it's taking on the role of Big Brother or Big Sister with BBBS Miami, or volunteering at Feeding South Florida, another non-profit we've been supporting for years.

Thanks to these initiatives, we've been able to enhance the social fabric of our local South Florida communities while contributing to the well-being and success of residents.

Help Your Community Thrive With Power Financial Credit Union

From offering affordable banking products to giving back to the community, credit unions are vital to the financial health of the local area. Join this positive cycle by becoming a credit union member today!

Power Financial Credit Union membership is open to anyone living or working in South Florida. Learn more about our banking products or visit a nearby branch to get started!