St. Louis Community Credit Union channels CDFI funds into $40M in business loans
St. Louis Community Credit Union has turned Community Development Financial Institution (CDFI) certification and impact-driven deposits into more than $40 million in loans, 90% directed to Black-owned businesses. CEO Kirk Mills said the approach helps close gaps caused by generations of financial exclusion.
In the heart of St. Louis, Missouri, one credit union is quietly rewriting the rules of community finance. What started as a mission-driven approach is now drawing attention for the ways it's reshaping access to capital, and the results are turning heads.
Empowering communities through small business lending
St. Louis Community Credit Union (SLCCU) has deployed more than $40 million in business loans—90% of which have gone to Black-owned enterprises—through a model that leverages CDFI funding alongside philanthropic and institutional partnerships.
For President and CEO Kirk D. Mills, this is proof of how CDFI status enables credit unions to expand their reach and deliver resources to communities where traditional banking often falls short.
Building financial strength with limited deposits
SLCCU serves more than 52,000 members across 14 branches, yet its asset base is roughly $430 million, far below that of a typical credit union with similar size and reach. The reason, Mills explains, is the reality of serving historically marginalized communities, where the average member deposit is around $6,500.
"Our credit union is really the manifestation of the racial wealth gap," he said. "That means we must look beyond our deposit base and find ways to bring in outside capital (public, private, and philanthropic) so we can keep lending to the people who need us most."
Their CDFI certification, obtained in 2009, is critical to that strategy. It opened the door to federal grants and programs, allowing the credit union to build loan-loss reserves and create innovative products focusing on what their communities really need. The first grant, awarded in 2010, helped SLCCU consolidate payday loans for members, breaking cycles of predatory debt that had trapped many households in the aftermath of the housing crisis.
Innovative partnerships expand resources
Over time, SLCCU has paired its CDFI status with a unique Community Impact Deposit program. Launched in 2022, the initiative draws capital from local health systems and foundations, including BJC Health System, SSM Health, the James S. McDonnell Foundation, and the Missouri Foundation for Health. These partners have deposited nearly $25 million into the credit union, significantly expanding SLCCU's ability to make low-cost loans.
That infusion of outside funds has multiplied its impact on the ground. Since the program began, SLCCU has issued more than $40 million in business loans, with the vast majority supporting Black-owned businesses across the St. Louis region. By bridging the gap between mission-driven institutions and local entrepreneurs, the credit union is channeling resources in ways that improve household stability, generate jobs, and fuel economic development.
Mills said the partnerships illustrate how credit unions can serve as trusted stewards of institutional investment. "We're not here to eliminate risk. We're here to mitigate it," he noted. "Our role is to take chances on people who might not get an opportunity elsewhere, and to do it responsibly."
Taking chances, measuring results
That willingness to accept higher risk is central to SLCCU's mission. Mills acknowledged that the credit union's net charge-off ratios are two to four times higher than those of typical institutions. But those numbers, he argues, reflect intentional lending to people with lower credit scores who have historically been excluded from mainstream finance.
"The real measure of success is reaching back to those who need you most and giving them a fair chance," he said.
The impact goes beyond business lending. Through CDFI resources, SLCCU has developed consumer programs such as payday loan alternatives and Sure Rides auto loans, both designed to help members access credit without turning to high-cost lenders. In addition, the credit union used new markets tax credits to reopen and refurbish branches in underserved neighborhoods, including the historic Gateway branch, which honors the legacy of one of the nation's first African American-owned banks.
Lessons for other credit unions
Mills often fields calls from other credit unions considering CDFI certification. His message is consistent: entering this space requires commitment at the board and leadership level, particularly when it comes to risk tolerance.
"If you expect charge-offs to remain at 20 basis points, this isn't for you," he said. "But if you're ready to accept higher risk in exchange for deeper community impact, CDFI can be a powerful tool."
That philosophy also extends to removing barriers to membership. SLCCU lowered its par share requirement from $100 to $25, and now just $1, to make joining accessible. Certificate minimums were set at $300, far below typical bank requirements, so members with modest savings could still participate.
Looking ahead
For SLCCU, the future involves continuing to blend CDFI funding, philanthropic deposits, and private capital to widen its reach. Mills said the credit union will keep expanding programs that give people fair access to financial tools, even if that means absorbing greater risk than most institutions would accept.
The strategy is paying off in the form of stronger families and more resilient neighborhoods. By converting outside investment into local opportunity, SLCCU demonstrates how CDFI credit unions can bridge systemic gaps and ensure that more people feel they truly belong in the financial system.
