Posted on August 27

LOWER EAST SIDE PEOPLE’S FEDERAL CREDIT UNION PICKED TO COMPETE FOR $8.25 MILLION WACHOVIA NEXT AWARDS FOR OPPORTUNITY FINANCE

Large Awards Spotlight Past Performance and Future Potential in Hard-to-Serve Markets

Semifinalists in 8 States from California and Louisiana to New York and New Hampshire

NEW YORK CITY – One of the nation’s largest and most prestigious awards programs in the financial services industry today announced New York City-based Lower East Side People’s Federal Credit Union (LESPFCU) is a semifinalist for $2.75 million to scale up their success. Community development financial institutions (CDFIs)are special purpose financial institutions skilled at creating opportunities and economic growth in hard-to-serve markets across the nation.

This year’s contenders serve diverse urban and rural populations and offer potent antidotes to the lending practices that led to today’s financial markets crisis.

Lower East Side People’s Federal Credit Union (LESPFCU) is a community development credit union, with branches on the Lower East Side and Central Harlem, which has been providing safe, alternative financial services for 22 years.

The Wachovia NEXT Awards for Opportunity Finance in partnership with The John D. and Catherine T. MacArthur Foundation is run by the Opportunity Finance Network (OFN) and funded through OFN by The Wachovia Foundation and The John D. and Catherine T. MacArthur Foundation. The Wachovia NEXT Awards for Opportunity Finance recognize excellence among financial institutions that responsibly serve lowincome and low-wealth people and communities.

“Lower East Side People’s Federal Credit Union has blazed an unlikely trail on solid ground against expectations,” said Mark Pinsky, CEO of the Philadelphia-based Opportunity Finance Network. “All 10 CDFIs have proven their ability to transform communities and markets and are ready to make significant leaps forward.”

LESPFCU CEO, Linda Levy said: “We are delighted to be singled out for recognition as a semifinalist in the review process for the Wachovia NEXT Awards for Opportunity Finance. This validates our hard work in the community and our efforts bring opportunity finance to people and neighborhoods that might not otherwise benefit from it. We are honored to be actively considered for an Award that could really transform LESPFCU and take it to the next level.”

The awards were first introduced in 2007. The 10 semifinalists for 2008 are: ASI Federal Credit Union, Harahan, La.; Community First Fund, Lancaster, Pa.; Corporation for Supportive Housing, New York; Homewise, Inc, Santa Fe, N.M.; IFF, Chicago, Ill.; Lower East Side People’s Federal Credit Union, New York; Low Income Investment Fund, San Francisco, Calif.; Neighborhood Housing Services, Chicago, Ill.; New Hampshire Community Loan Fund, Concord, N.H.; Southern Bancorp, Arkadelphia, Ark.

The $8.25 million in grants and investments will be awarded to two CDFIs with excellent past performance and exceptional potential to extend or expand their work. A distinguished Selection Committee will meet in Chicago on September 25th to select the recipients. The Selection Committee will announce the awardees of the Wachovia NEXT Awards for Opportunity Finance on Wednesday, December 10, 2008 at a ceremony attended by more than 700 of their peers in Albuquerque, N.M. during OFN’s Annual Conference.

Last year’s awardees were the Latino Community Credit Union (LCCU) of Durham, N.C. and ACCION Texas, a statewide organization based in San Antonio, Texas. LCCU is using its $5.5 million award to keep pace with its growing market of immigrant and low-income customers across North Carolina. ACCION Texas has put its $2.75 million prize into extending its micro-lending reach, to help micro-entrepreneurs in the Lone Star state and neighboring states using a unique micro-credit scoring model.

“This year’s awardees will define what it means to be NEXT,” said Mike Rizer, executive vice president for the Wachovia Foundation. “We’re proud to continue our long-standing support for the Opportunity Finance industry with our investment in the Wachovia NEXT Awards for Opportunity Finance, which will help innovative, up-and-coming CDFIs grow and create even more economic opportunity for families and communities.”

Like LCCU and ACCION Texas, this year’s awardees must show financial strength, a boldbut- sound vision for their organization’s future, exceptional leadership to realize their potential, and a commitment to excellence and innovation.

The Wachovia NEXT Awards were established to spotlight how CDFIs increasingly benefit our economy. CDFIs are market-based, private-sector financial intermediaries that finance opportunities benefiting low-wage and low-wealth people. They help people and communities beyond the reach of conventional finance to join the economic mainstream and open “opportunity markets” to mainstream institutions. At year-end 2006, the CDFIs in OFN had cumulative net charge-off rates of less than 1.3 percent, based on more than $25 billion in financing over more than 30 years.

“The Opportunity Finance industry’s track record gives us confidence and hope, even at this time of serious economic challenges,” added Debra Schwartz, director of program related investments for the MacArthur Foundation. “We hope that these game-changing awards will educate all who participate in our country’s financial and credit markets about the pivotal role of CDFIs and the valuable contributions they’re poised to make in the years ahead.”

To arrange to interview Mark Pinsky, CEO of the Opportunity Finance Network, the Wachovia NEXT Award semifinalists and spokespeople from the Wachovia and MacArthur Foundations, please contact Jeanine Plant at 212.245.0510 or jplant@pro-mediacommunications.com.

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