NORTH MINNEAPOLIS, Minn.–The City of Minneapolis said it will provide $500,000 to a start-up credit union here aimed at becoming the only financial institution in the state owned and operated by African-Americans.
The City Council said $410,000 of the city's commitment will come in the form of a loan that is forgivable in 10 years if the credit union meets specific goals.
As CUToday.info reported here, Village Financial Cooperative Credit Union has received approval to begin operating from the Minnesota Department of Commerce, with a target date for opening now set for June 15.
Village Financial Cooperative Director of Vision and Strategy, Me'Lea Connolly, told KSTP the credit union will open and operate in North Minneapolis and will be the first minority-owned financial institution in the city in over 20 years.
"Economic ownership and institutional power is key," Connelly told the news outlet.
More Than $4 Million Pledged
According to Connolly, the credit union already has 1,700 people who've pledged $4.25 million to become potential members. "They already have the prosperity and now they need a place they can trust," Connolly told KSTP. "Already, there have been $4.25 million pledge-deposits that have come from black folks in this community."
The credit union’s organizers are now looking for space to lease.
As CUToday.info reported earlier, the creation of Village Financial Cooperative Credit Union was spurred on by the police killing of Philando Castile in 2016, along with a goal to financially support black residents in north Minneapolis by providing an alternative to payday loan companies and check-cashing services.