CHICAGO -
The CU has joined forces with Centro Romero, a community-based organization that serves the refugee immigrant population on the northeast side of Chicago, to help the Hispanic community obtain U.S. citizenship.
"We and [Centro Romero] are working together on different community issues," said Ed Jacob of North Side Community FCU. "I don't know how to help people apply for citizenship. And they don't know to help people get loans. This program wouldn't work if we didn't have them for a partner."
Centro Romero does the initial interview, ensuring that the immigrant is eligible for U.S. citizenship. Then if the only thing stopping them is the $675 citizenship fee, they refer them to North Side Community FCU.
Once approved, the credit union makes out the check directly to the federal government, Jacob said, and the potential new citizen brings the check back to Centro Romero. In all it's about a six-month process, Jacob said, which also includes a background check.
North Side is no stranger to reaching out to the underserved. The 2,800-member credit union offers its members alternative to payday lending.
"Our niche is the unbanked," said Ed Jacob, North Side Community FCU president. "And we're always interested in finding new members. Everyone who has gotten this loan is now a new member. And this way we can not only reach out to this community, but develop longstanding relationships with them-not only for this loan, but for future loans."
Jacob hopes these new members will come back when they are ready for automobile loans or mortgage loans. At present, it's too soon to tell since the new loan program just began this past February.
"We'll measure it over time," Jacob said.
The $675 citizenship loan has a nine-month term at a 10% rate. This $675 is especially difficult for families that may have multiple members applying for citizenship at the same time, Jacob said.
The CU has granted 48 loans from its first one in February through its last count on July 31.
"Two have been repaid, and 46 are on our books," Jacob said. "They've really been performing well. Only two are between 30 and 60 days delinquent. None are more than 60 days delinquent."
North Side doesn't expect to stop with the Hispanic community.
"We would like to expand to working with immigrants from other countries, too," Jacob said. "I don't view this as the end."
While Jacob does not know of any other credit unions offering citizenship loans at present, he said he has gotten several phone calls from other CU leaders asking for advice on how to structure a loan of this type. His most important piece of advice, he said, is to find a partner organization. People are reluctant to come to a financial institution on their own, he said, and without the referrals from a credible organization such as Centro Romero, the program would not be successful.
"It has really been a joint effort," he said. "Credit unions don't do a good job about getting the word out about what we do. We have to do a better job partnering."
As for these new members, Jacob said the response has been positive.
"They're really happy," he said. "They really appreciate it."
