Community Development Programs

Community Visa

Community Development Resources

More Than Just Commerce

Child Care Economic Impact Report

Earned Income Tax Credit (EITC)

Member Highlights

Frequently Asked Questions

At the Santa Cruz Community Credit Union, we care about two things. First, we care about serving our members, who are also the owners of this community-based financial institution. Second, we care about contributing to lasting social and economic justice. We accomplish this through our work in community development programs in child care, financial literacy, the Individual Development Account matched savings program, and microenterprise lending. The community development work of the Santa Cruz Community Credit Union is implemented in coordination with Santa Cruz Community Ventures, the 501(c)(3) affiliate of the SCCCU, which also secures additional funding for these programs.

Each of our ongoing programs is described below. You can either scroll below or use the quick links to jump directly to a particular program description.

Community Development Quick Links:
[ IDA Program | Family Loan Program | Child Care Revolving Loan Fund ]
[ Accessory Dwelling Unit Loan Program | MTJC | ChildCare Ventures ]
[ Child Care Business Alliance ]
[ Community Partnership Lending Program ]
[ Child Care Playground Safety Initiative Grant Program
[ Earned Income Tax Credit (EITC) Project ]

Individual Development Account Program
Individual Development Accounts (IDAs) are special savings accounts that provide incentives for very low-income individuals to save for specific asset building goals. To be eligible for this program individuals cannot earn more than 150% of the poverty guideline and must be referred by one of our twenty-two Community Partners.

Every dollar an IDA participant saves (up to $5,000) is matched with two dollars by the SCCCU IDA Program to be used for that participant's goal. In other words, if a participant deposits $50 into an IDA, the SCCCU will match the $50 deposited at a 2 to 1 rate, a match of $100. This will then give the participant a total of $150 saved towards his or her goal. All matching funds and operational funds for the IDA Program come from foundation, government, and individual donations.

Under the leadership of June Padilla Ponce, our Program Coordinator, all of our IDA participants have been successfully saving and receiving matching funds to reach goals of developing assets to bring about a long-term improvement in their quality of life. Our first IDA participant reached her savings goal in 2002.

Many of our Community Development programs are dependent in part or entirely on individual or corporate donations and foundation grants. The matching funds for the IDA Program, for example, come entirely from donations and grants. Having a broad base of supporters donating between $25 and $200 is extremely important both for those donations themselves as well as for the community support this indicates to foundation sources. Santa Cruz Community Ventures is the 501(c)(3) nonprofit affiliate of the Santa Cruz Community Credit Union which brings in foundation grants for our community development programs and also accepts donations which are fully tax-deductible by individuals. We invite your tax-deductible donation to support our Community Development work. To make a donation, send a check made payable to Santa Cruz Community Ventures, PO Box 1877, Santa Cruz, CA 95061-1877. Thank you!

Family Loan Program
Finding and keeping a job can be a challenge for working parents. Occasionally, expenses arise that a family is not prepared for, such as buying or repairing a car, paying for the security deposit or buying a uniform or tools needed on the job. The Family Loan Program was established to help families deal with these kinds of situations. We help working families maintain economic stability by providing loans to cover "job related" expenses or transportation needs.

The Family Loan Program is a partnership with the Family Service Agency of the Central Coast, Families in Transition, Inc. and the Santa Cruz Community Credit Union. Funding for the program has been provided by the David and Lucile Packard Foundation, the Human Resource Agency of Santa Cruz County and the Community Foundation of Santa Cruz County.

The Family Loan Program is a revolving loan fund. A pool of money is used to make loans at modest interest rates to members of the community in need. As the loan money is paid back, it becomes available for others in the same community.

The Family Loan Program is available exclusively to parents, to assist them in maintaining employment or continuing their education. Applicants who are approved for loans will also receive budget counseling to learn how to make the most of their income.

To find out if you qualify or to get more information, please contact Melisa Vierra at (831) 458-7168 or via email at melisavierra@hotmail.com.

Child Care Revolving Loan Fund
One simple and attainable solution to many financial problems faced by child care providers is to make low-interest, short-term loans available to them.

While most commercial lenders do not make such loans, the Santa Cruz Community Credit Union does - through the Child Care Revolving Loan Program. The SCCCU has been able to secure three grants for the purpose of guaranteeing low-interest loans to child care providers serving low-income families. The loans are relatively small loans, up to $15,000, and for a period of time usually less than two years. Because of the source of these funds is from grants, the SCCCU is able to make these loans at a 3% rate. As the child care providers pay back their loans, the loan funds are then available to other child care providers.

Here's how it works: contributors make tax-deductible donations to the SCCCU. These deposits serve as full or partial collateral, which enables the Credit Union to make low-risk, low-interest loans to child care providers. And since it is a revolving fund, loan repayments replenish the fund making the money available to other providers.

Any of the county's licensed child care providers - both private and nonprofit - are eligible. Loans are used to modernize equipment, purchase educational materials and toys, improve facilities, obtain technical assistance, and meet short-term cash flow needs.

The Child Care Revolving Loan Fund served as a model that has been adapted to the Affordable Accessory Dwelling Unit Loan Program - a collaboration among the City of Santa Cruz and the SCCCU.

This innovative Accessory Dwelling Unit (ADU) Loan Program intends to create more affordable housing in our community. In a study designed to identify housing types that could help alleviate the City's housing crisis, Accessory Dwelling Units were identified as one way to provide more affordable rental housing. Building ADUs will increase the overall stock of rental housing and may be able to help homeowners more easily afford their home. An ADU is an additional dwelling unit that has a kitchen, sleeping, and bathroom facilities; is attached or detached from a primary residence; and, is in a single-family lot.

In addition to the loan component, the ADU program includes additional components designed to address concerns about the potential effects on neighborhoods. These include: 1) Design Prototypes; 2) Technical Assistance; and, 3) Development Assistance.

ADU program loans of up to $70,000 available at 4.5% interest in exchange for providing affordable rental units. To qualify for an ADU loan, you must be a homeowner in the City of Santa Cruz at the same address as the ADU; have at least 50% of the loan amount as equity in your home; and, agree to keep the rental unit affordable to low-income tenants for a period of at least 15 years. The ADU loan program restricts incomes and rents to provide for households at or below 80% of the Area Median Income(AMI).

If you would like more information about the ADU program, please contact Norm Daly at the City offices at 831-420-6265 or email Norm at ndaly@ci.santa-cruz.ca.us. After you have spoken with the folks at the City, and you would like more information about the loan program, contact Lisa Carrisales at (831)460-2304 or by email at lisa@scruzccu.org.

More Than Just Commerce

Striving to increase social, economic, and environmental justice in our community, the Santa Cruz Community Credit Union has created More Than Just Commerce (MTJC) to promote environmentally, economically, and socially responsible businesses. More Than Just Commerce connects responsible shoppers with these businesses. Businesses which agree with the following philosophy become members of the online MTJC Directory.

Here is the full statement that MTJC business members agree to:

As a member of the Santa Cruz Community Credit Union's More Than Just Commerce Program, our business strives to conduct business in a socially just and environmentally sustainable way. Recognizing this business as an opportunity to serve the community, we subscribe to the following principles:

• We strive to provide high quality goods and services at affordable prices while providing respectful customer service.

• We try to minimize the environmental impacts of all our business activities. We reduce, reuse, recycle, and buy recycled as much as possible; minimize non-recyclable waste; and properly dispose of all hazardous waste.

• We attempt to be fully informed about our suppliers so that we can work with businesses whose values regarding business operations are in alignment with our own.

• We respect our employees and treat them fairly while keeping in mind the living wage, helping them be informed about our services and products, and encouraging them to do all they can to see that our business is socially and environmentally responsible.

• Finally, we conscientiously consider, as a first priority, doing business with other (local when and if possible) businesses that are also aware of impacts they have on society and on the earth. We support the community by the nature of our business and/or through charitable giving.

Now, you can support these businesses while you meet your needs. Learn about these businesses at the Web site: www.morethanjustcommerce.org. You will find a substantial number of MTJC businesses right now, and more are joining. If your favorite responsible businesses have not joined, encourage them to do so. It's simple for them to join - they can go to the Web site and enter their information online. Our staff will make sure the information is in order. Businesses do not pay to join.

You will find other educational information at the MTJC Web site, much of it in the form of links to other related activities and organizations. Much excellent work has been done by others regarding socially responsible consumption, investing, and life styles. If you wish to become more informed in these areas, you can follow the Web site links. Please use MTJC and give us continuing feedback and suggestions. We look forward to hearing from you.

ChildCare Ventures

Overview

• In order to maintain the existing supply of child care spaces, and to support child care programs as sustainable enterprises, child care programs must have access to business management training.

• In order for child care supply to continue to increase rapidly to meet local demand, child care programs need access to facilities development technical assistance, appropriate financing products, and land use and real estate assistance.

ChildCare Ventures exists to meet these needs.

ChildCare Ventures (CCV) functions as a collaboration of five organizations - the Central Coast Small Business Development Center, El Pajaro Community Development Corporation, the Child Development Resource Center/Santa Cruz County Office of Education, the Santa Cruz Community Ventures, and the Santa Cruz County Human Resources Agency. The Santa Cruz County Office of Education is serving as the fiscal agent through June 2003. CCV became a program of the Santa Cruz Community Credit Union in July 2003.

ChildCare Ventures evolved as a result of the David and Lucile Packard Foundation Local Investments in Child Care (LINCC) Initiative. A diverse group of stakeholders that comprised the local LINCC Project advisory committee identified the concept of a child care facilities development intermediary as a strategy to:

• ensure child care is considered a vital element of local community economic vitality

• facilitate the development of child care facilities as a part of the economic infrastructure, particularly in low income neighborhoods, and

• support child care programs as sustainable enterprises.

Click here to download the ChildCare Ventures brochure.

Child Care Business Alliance

The Santa Cruz County Child Care Business Alliance (CCBA) is designed to function as a business development service, a professional support network, an educational resource, and a bulk purchasing program.

As part of the CCBA, you can multiply your strengths by working collaboratively with other committed child care center directors as well as financial resource agencies and business development specialists in the community.

The Child Care Business Alliance Vision We believe that:

• Being part of a supportive alliance builds economic success.

• Enhancing the business of child care benefits our entire community.

• Child care business requires adequate financial resources in order to help each child develop and succeed.

The start-up phase of the Child Care Business Alliance has been generously supported by the Community Foundation of Santa Cruz County and the Community Advisors Network Fund, working through ChildCare Ventures.

The Concept for CCBA was developed by child care directors and other child development professionals in the Santa Cruz area, with research, business planning and initial program development provided by ChildCare Ventures.

For more information about CCBA, please contact Ellen Murtha at (831)460-2345 or emurtha@scruzccu.org.

Click here for membership information and to sign up.

Community Partnership Lending Program

The Community Partnership Loan Program is a way for the SCCCU to collaborate with community-based organizations to provide loans to their clients who might not otherwise be able to qualify for a loan. Increasing access to capital for underserved people has been at the heart of the SCCCU’s mission and we are continually seeking avenues to develop products and services that benefit our members. This innovative program is yet another step in outreach to low-income people in our community while combining the knowledge, experience, resources, and capacity of the SCCCU and of each partnering organization.

Our first shared initiative is with the El Pajaro Community Development Corporation (EPCDC), and will provide microenterprise loans to start up businesses working with the EPCDC. EPCDC has more than twenty years of experience in the provision of bilingual/bicultural small business assistance and job creation for primarily minority and low-income entrepreneurs. EPCDC is best known for its successful operation of the Plaza Vigil Business Incubator Program in Watsonville and the SCCCU has lent money to popular Plaza Vigil businesses including Conchita’s Ice Cream and Mexican Dried Products.

Here’s how the Community Partnership Loan Program works:

• The nonprofit raises funds to support the loans
• The funds are deposited with the SCCCU, and the SCCCU agrees to fund loans to a maximum of double the funds on deposit
• The nonprofit screens applicants and helps applicants complete the SCCCU business application
• The SCCCU makes all decisions regarding approval or denial of the loan application
• Loan size is between $2,000 and $5,000
• Loan terms are between one and two years
• The fund operates as a revolving loan fund where loan funds are available as loans are repaid back into the fund

The Community Credit Union has always supported microenterprise through our lending for low-income people and people who otherwise have limited access to capital. Microenterprise is generally defined as small businesses with 5 or fewer employees, requiring start up capital of less than $25,000. Lending to small businesses is widely viewed as a strategy of poverty alleviation. We are proud to develop innovative programs to increase our lending to small businesses.

The Child Care Playground Safety Initiative (CCPSI)

In January 2002, the David and Lucile Packard Foundation awarded a grant to the Santa Cruz Community Credit Union’s nonprofit, Santa Cruz Community Ventures/ChildCare Ventures (SCCV/CCV). The purpose of this grant was to regrant approximately $2.3 million to child care centers in Santa Cruz County and three other neighboring counties. This project was initiated because of the passage of a new California law that requires all child care center playgrounds to come into compliance with California’s Handbook for Public Safety. Realizing that this law provided no funding for the centers to make the mandated safety improvements, the Packard Foundation funded this creative initiative. These regrants support the renovation and replacement of playground equipment determined to be unsafe under this new law. The Packard Foundation turned to our Credit Union and SCCV/CCV to administer the Child Care Playground Safety Initiative (CCPSI) because of our strong, positive reputation for providing services to and working with the child care community.

SCCV completed the work of CCPSI and was able to re-grant $2.3 million to more than one hundred child care centers in Santa Cruz County and three oth er counties to make state-managed child care playground safety improvements.

Earned Income Tax Credit (EITC) Project

The federal government provides economic relief for low-income families in the form of tax credits. However, when tax season rolls around many low-income families often don’t know about and don’t claim the tax credits they are owed. Those who seek help claiming these credits often lose a portion of their refund to excessive preparation fees and high-cost, refund anticipation loans.

In Santa Cruz County each year more than $6 million in tax credits remain unclaimed. How can our community recapture these dollars? Free tax preparation clinics staffed by volunteers are a proven solution. Each year free tax assistance programs have a tremendous impact in our community, bringing thousands of dollars in tax refunds and credits to low-income families. For many families this service is invaluable. A single mother working full-time at $9.70/hr., raising one child would receive $1,615 in Earned Income Tax Credits (the average EITC refund for Santa Cruz County), and the equivalent of an 8% raise. The potential impact of this service is staggering; serving 500 “average” families would bring $807,500 into the hands of those who need it most!

Offering free tax assistance to low-income families is an important part of the SCCCU’s commitment to financial education. Helping families claim the tax credits they are owed and helping them to avoid costly preparation fees, enables them to move toward greater financial security. Families often use their refund dollars to pay bills, get out of debt, or build a savings cushion.

Click here to learn more about our free tax assistance program.