The Empowering Ravalli Women initiative is helping single mothers and other women in poverty find their financial footing.
By Connie Aitcheson
Ravalli County in Southwest Montana has fairly average poverty rates. According to the Census Bureau, as of 2021, 10.8% of the roughly 44,000 residents are living below the poverty level. When you dial in on women's experiences, though, the picture looks very different.
“There are so many women in our area living at the poverty level,” says Darci Parsons, the president and CEO of a local credit union called Ravalli County Credit Union (RCCU).
For single mothers in the area, poverty rates jump to 49%, also according to the most recently available Census data. In Hamilton, the largest city in Ravalli County, a staggering 83% of single mothers are in poverty and earn 75% less than married couples with children — an average of $18,074 vs. $71,429. About 30% of RCCU’s clients are female-headed households, and their median earnings are 20% less than men.
RCCU has been serving this population for many years, but leadership hopes a recent $560,000 grant from the CDFI Fund of the U.S. Treasury Department will help them make a bigger impact. The funds are being used to get the Empowering Ravalli Women initiative off the ground.
“It’s such a great thing for our area and for our members and potential members,” says Parsons. “People hopefully will be steered to our direction.”
RCCU received CDFI certification in 2019 after realizing they were already aligned with the mission of a CDFI as a low-income-designated credit union. The certification has opened up new opportunities — such as the ability to apply for the CDFI Fund grant.
Their community of Ravalli County is experiencing a tension familiar to many metro areas across the country. A new wave of retirees and remote workers — in part sparked by COVID-19 — have moved into Montanta, increasing both housing costs and the general cost of living. The median price for a home in the county, according to Realtor.com, has risen to nearly $700K.
“There are a lot of people who move to our area with means,” Parsons says. “And, unfortunately, there’s a lot of people in our area who are underserved, who are struggling to make ends meet. Our job is to have that balancing act of where we’re serving new members who move into our area who have funds as well as the large population of people in our area who do not — primarily women.”
Parsons attributes some of the reasons for the large amount of women living at the poverty level to the death of a spouse, divorce, unplanned children, domestic violence and the high cost of housing in the area.
The grant will allow the RCCU to take chances on people they wouldn’t have before. “It will help us because we can lessen our underwriting restrictions,” Parsons says. “We can write loans for people who are maybe more credit challenged … or who might have collections.”
The credit union also offers an account that protects against overdraft fees and offers a $500 line of credit — regardless of someone’s credit score. They also do not perform background checks on any applicants.
“If they’ve had problems at other financial institutions, they can still open a checking account with us,” Parsons says.
As part of the new initiative, RCCU is partner with other local organizations to help women get stronger financially. One such local partner is S.A.F.E (Supporters of Abuse Free Environments), a women’s shelter in Ravalli County. They provide financial education to some of the women and help them with banking services.
According to Parsons, many women “don’t have that confidence in themselves.” She says she and her staff work to make all members feel comfortable — regardless of what terminology they understand or financial education they have.
“As a credit union, our mission is helping people, and that’s what we do everyday,” Parsons says. “I have an amazing staff who embody that and make a difference in the lives of our community.”
This story is part of our series, CDFI Futures, which explores the community development finance industry through the lenses of equity, public policy and inclusive community development. The series is developed in partnership with Next City.