It took 13 years for Kansas City organizers to turn their vision of a community-owned credit union into reality. Less than four years after opening, WeDevelopment Federal Credit Union has lost its independence.
The institution created to help East Side residents build wealth and escape predatory lending merged into CommunityAmerica Federal Credit Union on Sept. 1, following a federal takeover and mounting financial losses.
The National Credit Union Administration took control July 10, citing “unsafe and unsound practices.” Regulators have not publicly detailed those practices, but financial reports show losses had exhausted the institution’s capital cushion.
For the residents, organizers and donors who spent years bringing WeDevelopment to life, the merger ends a much longer struggle than its brief operating history suggests.
Thirteen Years of Determination, a Painful Loss
For Ajamu Webster, WeDevelopment was more than a credit union. It was a vision he refused to abandon.
The idea grew from a task force convened by former Mayor Mark Funkhouser to improve economic conditions in struggling Kansas City neighborhoods. Webster helped turn that recommendation into a mission—and stayed with it through 13 years of fundraising, paperwork and setbacks. When progress stalled, he kept pushing. His determination helped carry the credit union from an idea to an approved charter in 2022.
He retired and moved to Ghana shortly afterward, but his hopes for its success never faded. Now, its loss is deeply personal.
“We did our best, and we accept that our best wasn’t good enough. We are grateful for the opportunity to bring the vision of an African American community-owned financial institution to life. We will forever appreciate the support received from organizations, institutions, churches, business owners, and community leaders. And most importantly, we are grateful for support from our credit union members and staff.”
A Community’s Long Investment
The effort began in 2009, when then-Mayor Mark Funkhouser commissioned a task force to identify ways to improve economically distressed areas. Task force chair Ajamu Webster and other participants pursued a recommendation to establish a community development credit union.
The goal was to provide affordable financial services in neighborhoods where payday lenders and check-cashing businesses filled gaps left by traditional banks.
After years of fundraising, planning and regulatory work, WeDevelopment received its federal charter in July 2022.
“Did I say this was a long process, a very, very long process,” Webster joked at its October 2022 ribbon cutting.
The celebration reflected support from institutional donors as well as residents who contributed $10 or $20. Webster described the effort as a citywide project.
The credit union began serving customers around the turn of 2023 at 3123 Prospect Ave., with about $1.4 million in assets reported at the end of 2022. Its services included checking and savings accounts, auto and personal loans, business financing and financial guidance.
Early Promise, Mounting Losses
By summer 2023, leaders were celebrating their ability to help borrowers who struggled to obtain conventional financing.
“They’re finding out that when other lenders are saying no, we say yes,” then-CEO Gwen Washington told The Community Voice.
Among the businesses financed was Privēe Restaurant + Lounge, according to restaurant staff who spoke with The Voice. The upscale Crossroads establishment opened in August 2023 and closed less than a year later, amid lawsuits and unpaid-bill claims.
The restaurant’s quick failure raises questions about the wisdom of that first-year loan, although the credit union’s loss on that loan, if any, remains unknown.
The broader financial picture was troubling.
Reporting based on regulatory filings shows WeDevelopment lost approximately $331,000 in 2024, $305,000 in 2025 and another $255,000 during the first three months of 2026.
By March 2026, WeDevelopment had fallen into a negative net worth position. It had about $2.63 million in assets — cash, investments, outstanding loans and other assets — but roughly $2.82 million in deposits and other obligations it must repay, a shortfall of approximately $190,000.
For a credit union, the key benchmark is a financial cushion equal to at least 7% of its assets. Regulators call that “well capitalized.” A ratio of 6% to less than 7% is “adequately capitalized.” These are capital benchmarks, rather than a guarantee of overall financial health.
For comparison, credit unions nationwide had a combined net worth ratio of 11.31% at the end of 2025, comfortably above that 7% benchmark, according to NCUA.
Those figures reflect serious financial deterioration, but they do not make clear how much of the overall losses came from unpaid loans, operating expenses or other decisions.
Accounts Protected, Independence Gone
After taking control, NCUA determined a merger was in members’ best interests. WeDevelopment had 1,015 members and approximately $2.4 million in assets when the merger was announced.
Member accounts remained federally insured, and services continued. CommunityAmerica says account conversions are taking place during October, with existing loan rates and terms preserved.
The merger protects continued access to financial services. But it also closes the chapter on an independent institution built through more than a decade of community effort.
The question now is how that long-awaited promise unraveled so quickly.
