SOCIAL TOPICS (Archive): COMMUNITY DEVELOPMENT INVESTING 

Published, Fall 2002

A Great Day in Harlem, the famous 1958 photograph of 57 jazz musicians on the steps of a 125th Street brownstone, captured the spirit of a neighborhood that claimed as a distinguishing characteristic the most popular music clubs in New York City. Economic injustice took its toll in the decades to follow; the depression in Harlem lasted until only a few years ago. Now, however, there’s talk of building a National Jazz Museum in the area and the Apollo Theater has re-opened its doors. And of special importance to the area’s rejuvenation is a financial institution dedicated to assisting residents - among whom average per capita income is $10,000 per year - start their own enterprises, get free of loan sharks, and learn the principles of responsible and strategic money management.

Enter Neighborhood Trust

The Neighborhood Trust Federal Credit Union (NTFCU) opened its doors to the Washington Heights/Inwood community in March 1997 and now claims 4,100 local members and assets of more than $5.2 million. NTFCU reports that one thousand accounts have been opened for fourth- through sixth-graders, totaling $50,542 in savings as part of its “School Banking” program. A traveling teller is deployed to collect deposits - oftentimes of 50 cents each - from schoolchildren to demonstrate the credit union’s commitment to the younger generation. Executive Director Justine Zinkin recalls that “before joining NTFCU, half of all members had never had a bank account - many of Neighborhood Trust’s initial deposits came from shoeboxes and coffee cans full of cash.” When Mark Levine, now Executive Director of Teach for America New York, co-founded the credit union, his recruiting efforts included outreach at neighborhood churches as well as the creation of a tuition payment center for a local parochial school with ties to 500 local families. And according to Ms. Zinkin, 80 percent of the credit union’s employees are local residents.

Neighborhood Trust offers accounts with low minimum balance requirements, ongoing education and outreach, and a fully bilingual staff. Its cumulative total of about $1 million in micro-loans has helped members access health care, start and expand businesses, and purchase their first homes. As the second community development credit union in the country to be named a US Small Business Administration lender, Neighborhood Trust directors plan to leverage this distinction in order to make larger loans to neighborhood entrepreneurs.

A Portfolio of Services

Envisioning a full-scale (and bilingual) financial literacy curriculum, Mr. Levine first created Credit Where Credit Is Due, Inc. (CWCID) as Neighborhood Trust’s sponsoring organization. Members can now learn the basics of financial concepts and practices in its Personal Finance workshops. They can participate in the Entrepreneur Training Program, a comprehensive evening curriculum, to get training in and technical assistance with business plans, legal issues, and bookkeeping systems. The Homeownership Education program familiarizes potential first-time homebuyers with the mortgage process. CWCID is also set to launch one of the first youth credit union programs in New York City in partnership with the Harlem Educational Activities Fund.

And who has used these services? Dario Pichardo, for example, who now serves up sancocho stews at Anoranza D’29, his Amsterdam Avenue restaurant. And Darlys Cruz, who was able to expand her Washington Heights child-care center. Hiciano Payano purchased a top-of-the-line video camera for his film production company.

Goals for the Future

Recognizing the largest employment sector in Upper Manhattan is small-scale retail, one cornerstone effort in 2003 will be a small business initiative designed to increase that segment’s representation among credit union membership. Ms. Zinkin is especially excited about the potential to expand the credit union’s business services, designed to complement several new loan products. With the launch of a major community marketing campaign, she hopes to reach membership of 5,400 and to increase assets to $6 million.

Given its integral role in helping to rejuvenate the Harlem community, Neighborhood Trust keeps alive the spirit of Count Basie’s 1936 plea, “All I’m saying is that it won’t kill you to swing.” -L. Lyons