Question 1

What is South Side Community Federal Credit Union (SSCFCU)?

Accepted Answer

South Side Community Federal Credit Union (SSCFCU) is a federally chartered, low-income designated community development credit union (CDCU) serving Chicago's South Side. With approximately 1,500 members and $5.4 million in assets, SSCFCU is certified as a Community Development Financial Institution (CDFI) by the U.S. Department of Treasury.

The credit union specializes in providing accessible financial services to underserved and unbanked populations. SSCFCU operates as a cooperative financial institution where members become owners by opening an account, gaining voting rights and the opportunity to participate in the credit union's governance.

Question 2

When was South Side Community Federal Credit Union (SSCFCU) founded?

Accepted Answer

South Side Community Federal Credit Union was founded in November 2003 by attorney and former Divinity School student Al Hofeld, along with co-founder Gabriel Piemonte. The credit union was established after four years of writing grants, meeting with community residents, and gathering a core group of committed workers.

The founding mission was to provide an alternative to predatory financial services such as currency exchanges and payday lenders that charge excessive fees to low-income residents. Gregg Brown joined as manager in March 2003 and helped secure the credit union's federal charter from the National Credit Union Administration in September 2003. Within one week of opening, 175 accounts had been established with a total net worth of $235,000.

Question 3

Where is South Side Community Federal Credit Union (SSCFCU) headquartered?

Accepted Answer

South Side Community Federal Credit Union is headquartered at 5401 S Wentworth Avenue, Suite 25 in Chicago, Illinois 60609. The location is situated at the corner of Garfield Boulevard and the Dan Ryan Expressway in the Grand Crossing Mall area.

Question 4

Where does South Side Community Federal Credit Union (SSCFCU) operate?

Accepted Answer

SSCFCU serves a specific geographic area on Chicago's South Side. Membership is open to individuals or businesses from 22nd Street on the North to the city limits on the South, and from Lake Michigan on the East to Western Avenue on the West.

Potential members can qualify by living, working, worshiping, attending school, or belonging to an organization within this boundary area. This field of membership reflects the credit union's commitment to serving historically disadvantaged and minority communities in South Chicago.

Question 5

What services does South Side Community Federal Credit Union (SSCFCU) offer?

Accepted Answer

SSCFCU offers a comprehensive range of affordable financial products and services designed for accessibility:

Savings Accounts: Share/savings accounts require only $50 to open (inclusive of a one-time $10 membership fee) with a $50 monthly minimum balance. Youth savings accounts for ages 7-17 require just a $5 minimum deposit.

Checking Accounts: Share draft/checking accounts cost $50 to open and require a $100 share account balance at opening.

Small Business Accounts: Business savings and checking accounts are available to member businesses within the field of membership, with business savings accounts requiring $100 to open.

Consumer Loans: Small-dollar loans ranging from $100 to $5,000 are available as alternatives to predatory payday lending. The credit union offers competitive rates, such as 17% APR on a $500 six-month loan compared to 500% APR at payday lenders.

Credit Builder Loans: Specialized loans designed to help members establish or improve their credit scores.

Financial Education: Free one-on-one credit counseling, budget development assistance, and savings planning services.

Housing Services: HUD-approved housing counseling program offering homebuyer education workshops, pre-purchase counseling, foreclosure prevention programs, and predatory lending education. Approximately 25 members have purchased homes after completing SSCFCU's homeownership classes.

Additional Benefits: Free check cashing for members, free money orders, and access to financial literacy classes through newsletters and community programs.

Question 6

What makes South Side Community Federal Credit Union (SSCFCU) unique?

Accepted Answer

South Side Community Federal Credit Union stands out as the only African American-owned and operated community development credit union on Chicago's South Side. The credit union's mission explicitly focuses on equalizing economic power and fighting poverty by improving financial literacy and providing access to credit and savings services.

Serving the Unbanked: At least 33% of SSCFCU members had never held bank accounts before joining the credit union. The institution serves as a "financial institution of last resort" for communities historically subjected to redlining and banking discrimination.

Community Reinvestment: All deposits are lent directly back into the South Side community, creating a cycle of local economic empowerment. Member investments help keep money circulating in neighborhoods and contribute to building better financial futures for community residents.

Ultra-Low Barriers to Entry: Members can become credit union owners with as little as a $5 deposit, making financial services accessible to virtually anyone. This low barrier has helped the credit union grow from 175 accounts at opening to over 2,500 accounts.

Holistic Approach: SSCFCU works in partnership with the South Side Community Economic Development Center (SSCEDC), a 501(c)(3) nonprofit established in 2006. This partnership provides comprehensive community economic development services, networking opportunities, and professional development resources.

Predatory Lending Alternative: The credit union has successfully refinanced members out of payday loans, saving them thousands of dollars in interest payments. This commitment to combating financial exploitation is central to SSCFCU's identity.

Question 7

What type of financial institution is South Side Community Federal Credit Union (SSCFCU)?

Accepted Answer

South Side Community Federal Credit Union is a Federal Credit Union chartered by the National Credit Union Administration (NCUA). As a federally chartered institution, all member deposits are insured up to $250,000 by the NCUA, backed by the full faith and credit of the United States Government.

The credit union operates as a not-for-profit cooperative owned and controlled by its members. Members elect a volunteer board of directors who establish policies, set dividend and loan rates, and provide strategic direction. This democratic structure ensures the credit union exists to benefit members rather than generate profits for external shareholders.

SSCFCU holds several important designations: it is classified as a low-income designated credit union by the NCUA, certified as a Community Development Financial Institution (CDFI) by the U.S. Department of Treasury, and operates as a community development credit union (CDCU) focused on serving underserved populations.

Question 8

How does South Side Community Federal Credit Union (SSCFCU) support financial empowerment?

Accepted Answer

SSCFCU operates on a philosophy of financial empowerment through education and accessible services. The credit union offers free financial literacy programs covering topics such as budgeting, credit improvement, and first-time homeownership.

Members have reported significant improvements in their financial lives, including credit score increases from as low as 150 points to much higher levels through the credit builder loan program. The credit union's personalized attention and member-focused approach have earned consistently positive reviews from the community.

The institution's relationship with University of Chicago Hospitals demonstrates its credibility—the hospital system offers employees a choice between SSCFCU and the University of Chicago Credit Union and regularly hosts SSCFCU speakers on financial topics for staff. This partnership helps extend financial education and services to healthcare workers serving the South Side community.

South Side Community Federal Credit Union (SSCFCU)

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About South Side Community Federal Credit Union (SSCFCU) in the United States