Verity Credit Union in Seattle will use a $383,000 grant from the U.S. Treasury to fund a small dollar consumer loan program.

Community Development Financial Institutions like Verity can use such programs to expand access to mainstream financial organizations for unbanked and underbanked communities, the $859 million-asset credit union said in a press release Aug. 5.

“This funding will allow us to provide a vital financial lifeline and equip our community with the tools they need to achieve long-term financial stability,” said Verity CEO Tonita Webb in the release.

Verity will offer unsecured loans of up to $2,500, with no prepayment penalty and the opportunity to repay in installments. The initiative builds on Verity’s mission to reduce the generational wealth gap, supporting members in establishing credit and managing their finances effectively.

The credit union also offers a range of innovative programs and services, including reduced overdraft fees, bicycle loans, solar loans, no-minimum Certificate of Deposit programs and small business loans.

Webb took the helm of the credit union in 2021 after John Zmolek retired.

She was named one of American Banker’s >most powerful women in the credit union industry last year.

Verity said it is one of the few financial institutions with a Black woman CEO and a leadership team and board that identifies predominantly female.

The Treasury said the grant program was launched in 2021 and has awarded $40.2 million to financial institutions thus far.Verity earned $1.5 million through the second quarter of 2024, a 62% increase compared with a year earlier, according to call report data from the National Credit Union Administration.

“We are thrilled to receive this grant and continue to empower our members with access to needed financial services and solutions, especially those who have been unfairly targeted by predatory lenders.”

 – Tonita Webb
CEO
Verity Credit Union