Minnesota Department of Commerce announced Thursday that Arise Community Credit Union in North Minneapolis has been granted its state charter, marking an historic occasion and making possible people starting their own financial institutions. A press release by Association for Black Economic Power– which sponsored this project– stated this was Minnesota’s first ever Black-led credit union as well as first in 23 years to open under state authority.
Arise Credit Union will offer a full spectrum of financial services, from checking accounts and loans to investments and savings accounts. Aiming to serve Hennepin and Ramsey counties with the goal of helping members build wealth and become financially independent, Arise will be overseen by both an advisory board of directors as well as a supervisory committee (currently recruiting).
As a startup credit union, arise needs to raise $3 million in startup capital before starting lending activities. To accomplish this feat, the Minnesota Credit Union Network launched an unprecedented capital campaign aimed at raising funds for Arise – already exceeding its initial goal by raising more than $1 million that will cover some initial requirements as it expands.
Arise was established as part of the Association for Black Economic Power, formed after Philando Castile was shot dead by police, as a means to promote “organized investment into the black economy”. A credit union originally known as Village Financial Cooperative until fraud allegations forced its leadership out, was later rebranded under its new name, Arise. Now that more banks have entered small dollar loan space while more restrictions have been put on payday lenders targeting Black communities like Northside Chicago, Arise will hopefully provide much-needed relief and provide much-needed alternatives that offer needed relief – much needed as predatory payday lenders often target Black communities like Northside Chicago.
Before filing bankruptcy, ensure all direct deposits to credit union accounts have ceased and that most of your savings have been moved into regular banks. Otherwise, if any debt exists between now and filing date that can be charged against you regardless of any exemptions available to you.
Minnesota’s recent establishment of a credit union is an encouraging development, yet its delay reveals the significant barriers that remain for communities of color seeking to establish financial institutions themselves. Policymakers and the wider financial industry must be cognizant of this reality when fighting for fairness and justice across America – we cannot keep building walls to prevent these communities from reaching their dreams.