SAN FRANCISCO – Organizers of Occupy San Francisco who are putting together a credit union said they expect to submit an application to state regulators at the Department of Financial Institutions within the next three weeks.
Organizers say Peoples’ Reserve CU will be patterned on the Grameen Bank in Bangladesh. Its interest rates will be low and loans will go mostly to people who could not otherwise qualify for loans at banks or even at most credit unions. However, the loans will not be targeted at people who cannot pay them back.
Borrowers will be required to attend classes in business and personal finance and will have mentors to help their businesses succeed and to enhance their ability to pay back their loans. The credit union will work with San Francisco State’s Community Service Learning Project to provide the education component.
Organizers hope to raise up to $500,000 in non-member deposits to help capitalize the credit union start-up.
