Searching for a City to Inspire? Look to Ithaca

At the southern end of the Cayuga Lake in central New York, you’ll find the small City of Ithaca. I’ve driven through it a couple of times on my way to Buffalo and there was nothing particularly memorable about the place. My only experience in Ithaca involved a gas station and filling up my coffee to continue on my way. I’m sure it’s a lovely city, and now I feel the need to go back, spend some time there and visit Alternatives Federal Credit Union.

Late last month, Alternatives unveiled something so unique, it made me take notice. The credit union announced a new phase in its partnership with Planned Parenthood of the Southern Finger Lakes (PPSFL). It’s a new and possibly first-of-its-kind lending program called the TransAction Financial Empowerment Program.

According to a press release from both organizations, the TransAction Financial Empowerment Program “provides access to funds to support transition-related care and expenses” specifically for transgender and non-binary community members. The new lending program announcement came during the time of the Finger Lakes PULSE Pride Picnic and the credit union’s annual meeting where staff and members celebrated the 40th anniversary of the credit union.

I was somewhat aware of this particular credit union, and after reading this new lending service announcement, I spent a couple of hours digging around online and on social media channels to learn more.

Our readers already understand the missions of their particular credit union and what it should be doing for and with the communities it serves. But, and this is a very large but, I don’t know if I’ve seen or read about a credit union like Alternatives that is so completely enveloped in itself, its mission and its community members, and has meshed it into one colorful structure as it appears to have done.

Ithaca, N.Y., is home to roughly 31,000 people and it appears to be a very tight community – meaning, there’s a significant support structure that has been created for Ithacans (Ithaconians?) with help from Alternatives and other community service organizations. After reading about the history, cultural evolution and current status of the area, there’s something wonderfully different happening there. The local news coverage reflects normal news, like where to watch the local fireworks, the Ithaca Beer Company’s launch of a new summer beverage, the lineup for the Ithaca Reggae Fest, some crime news of a naked man found in a chicken coop and a missing hiker found after a 12-hour search. From an outsider’s perspective, it’s refreshing and nice to read things like this.

After reading how the city lives and functions, the announcement of the TransAction Financial Empowerment Program made much more sense to me. The credit union leadership recognized a community need and gladly filled it, because the loan alternatives for this segment of the population are literally predatory lenders.

According to an interview with Alternative Chief Experience Officer Chris Cain by the Startup Champions Network, there are two types of loans offered by the TransAction program:

• Personal loans to cover one-time expenses related to surgical procedures and other transition-related expenses.
• Lines of credit for ongoing expenses related to transition-related issues.

Since gender-affirming surgeries and procedures are elective, they are not typically covered by medical insurance, making what Alternative is doing that much more important and significant.

According to the Mayo Clinic and reporting by National Public Radio, gender-affirming surgeries (just the medical procedures) can cost upwards of $50,000 to $100,000.

In the press release from Alternatives and PPFSL, Alternatives COO Reiley Schoen explained more behind the decision to create this new lending program: “Alternatives has always nurtured innovative ideas that benefit our community. As a transgender person, I feel incredibly blessed to work at an inclusive organization as Alternatives and to have access to health care at PPSFL. The competent and kindhearted lending team at Alternatives will help make the process comfortable and respectful for those looking at our ‘TransAction’ products. We create a safe, supportive and comfortable environment with counselors who are trained to be active and careful listeners.”

Reading that passage a few times, it reminded me of past lending experiences with some credit unions and banks that I felt weren’t listening to what I needed, but were focused on some keywords I used to push a particular product. I understand it though – the fine line between therapist and revenue-driver. Sometimes you just need a financial therapist and allow that conversation to grow into a business-development/community need solution.

Alternatives has a 12-word mission statement: To build wealth and create economic opportunity for underserved people and communities.

The often-used phrase of “serving the underserved” has always been an appealing term within the credit union space. And when a credit union not only has that phrase included in its mission and then creates a program like the TransAction program – that’s an impressive move.

The only other example I could find of a credit union or bank offering anything close to this type of loan is at Chicago’s North Side Community Federal Credit Union, which offers personal loans for “trans or queer” members from $500 to $10,000 with interest rates ranging from 10% to 18%.

Really, the only other lending option for the non-independently wealthy in these situations appears to be crowdfunding medical expenses. And that’s just not a viable, realistic or sustainable option for health-related costs.

Alternatives isn’t a particularly large credit union with $110 million in assets. As a Community Development Credit Union serving this section of New York, it is making some bold moves we’d normally associate with a credit union that has an asset size of $1 billion or more.

From the support of the local farmer’s market, to the Drag Story Hour, to the She Means Business program encouraging girls to learn business skills, to the launch of the TransAction program, Alternatives is doing some amazing things in such a small footprint of the credit union space. CU Times is going to follow the progress of Alternatives not only because it’s newsworthy, but because it’s an interesting case study in serving the underserved while embracing members who might feel like they are on the fringe of society.

Next time I stop for gas in Ithaca, I’ll make sure to stay a little longer and get to know this city.

Michael Ogden is editor-in-chief for CU Times. He can be reached at mogden@cutimes.com.