ST. PAUL, Minn.–The Minnesota Credit Union Foundation said it has established a special fund to collect donations as part of an effort to raise $1 million in capital in support of launching and operating Village Financial Credit Union.
Village Financial CU is being sponsored by the Association for Black Economic Power (ABEP), which is seeking to charter a Black-led credit union to address systemic financial challenges impacting Minneapolis residents, particularly people of color.
ABEP is currently raising capital for post-opening operating expenses for Village Financial Credit Union, according to the Minnesota Credit Union Foundation.
“Establishing the only Black-led, cooperative credit union in Minnesota is an opportunity to effect positive change, empower growth and economic stability while directly addressing the core cause of systemic poverty on a variety of levels,” said Debra Hurston, executive director of the Association for Black Economic Power. “The original organizers were very passionate about having a community led credit union that would directly respond to the community wealth gap. Also, having the credit union owned and operated by the community provides a huge source of pride and independence for the members.”
‘The Right Thing to Do’
Added Mark Cummins, president of the Minnesota CU Network and the foundation, “Credit union history and principles are rooted in serving the underserved and cooperation among cooperatives. Coming together to support this effort is one way we can put our DEI commitments into action. It’s simply the right thing to do.”
As of the June 2021 reporting period, the Foundation said there were 264 Black American credit unions across the nation, managing $7.5 billion in assets for 762,000 members. Village Financial Credit Union would be the only Black American credit union in Minnesota, it added.
“The board of directors of AACUC and I are delighted that the credit union community is coming together to ensure that this credit union is launched and successful. The Commitment to Change: Credit Unions Unite Against Racism Initiative is truly reflected in this collaborative effort,” said Renée Sattiewhite, president/CEO of the African-American Credit Union Coalition (AACUC).
‘Highly Catalytic’
According to the foundation, capital donations, deposit pledges and individual contributions are currently being sought to support this effort.
“Contributions secured in now will be highly catalytic for ABEP and Village Financial, as they provide important grounding for the State charter application and NCUA application; evidence of traction as additional financial support from other sources are sought and operational sustainability during the first three years of opening,” continued Cummins.
For additional info: mncun.org/villagefinancial
Give Us Less Than 1 Minute & We’ll Give You Good News!
The ongoing popularity of CUToday.info’s daily Fresh Today newsletter has led to a need to move to a new server in order to provide improved service to our readers. In order to continue to receive the daily email, you must register by March 7. To register, just click here. The daily Fresh Today news headlines email remains FREE! The new service is being launched as part of a partnership with ResponseGenius.