The CEI Institute has partnered with the Filene Research Institute to launch a pioneering incubator project focused on Racial Economic Equity (REE) in underserved communities, marking a crucial step toward fostering social innovation and economic empowerment within the credit union sector. The REE Incubator brought together nine credit unions and eleven community partners from across the United States, spanning from New York to Hawaii, over an 18-month period to develop and implement solutions addressing racial economic inequalities, guided by CEI Institute coaches.
McKaye Black, Filene's Head of Incubation, emphasized the inspirational nature of this collaboration, highlighting how it exemplifies the credit union ethos of people empowering people. The initiative's success demonstrates the potential for credit unions to play a pivotal role in advancing racial equity within their communities. The incubator yielded programs such as down payment assistance, grant programs, matching savings schemes, financial empowerment services, educational resources, and targeted financial tools, with some credit unions focusing on specific demographics like high school students or young adults aged 18-25.
Peter Holmes, CEO of CEI Institute, underscored the significance of this work, stating, "Through these select projects, credit unions across the nation can begin to engage with individuals they had previously not reached, resulting in significant impact on both individuals and communities, as well as fostering new opportunities for membership growth." This approach not only addresses immediate economic disparities but also lays the groundwork for sustainable, long-term community development.
The culmination of the REE Incubator Program was marked by the presentation of capstone projects at Filene's Spark! 2024 conference. A highlight was the Catalyst Award, recognizing exceptional contributions to economic equity. Kaua'i Federal Credit Union, in partnership with Hawaiian Community Assets, won the award for their project focused on a down payment assistance program and a green lending initiative for cesspool-to-septic conversion, aimed at building Native Hawaiian homeownership on Kaua'i. The project is projected to reach $1 million in green lending in 2024.
Veridian Credit Union secured second place with their "Achieve" collaboration, a financial empowerment program serving African Americans in their community. This initiative has already shown impressive results, with 108 individuals accessing homeownership education, 161 receiving financial mentoring, and 30 becoming homeowners. Christie Kimbell, Executive Vice President at Filene Research Institute, emphasized the importance of tackling these challenges incrementally, stating, "It's all about rolling up our sleeves and making a difference, credit union by credit union, community by community!"
This collaborative effort represents a significant step forward in addressing racial economic disparities. By leveraging the unique position of credit unions within their communities, the project has demonstrated the potential for targeted, community-based initiatives to create meaningful change. For more information about the REE Incubator projects, visit www.filene.org/REE. To learn more about CEI Institute's coaching methods and community entrepreneurship initiatives, visit www.CEIInstitute.org.
