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North Minneapolis hopes for new credit union
An effort is underway to create a new credit union in North Minneapolis.
MINNEAPOLIS (FOX 9) - At the corner of West Broadway and Emerson Avenues in North Minneapolis, there is a church owned building that once housed a credit union.
But it could soon be home to another financial resource for Northside residents.
"We're very excited because we're very close to the final charter and that gives us the ability to start our business and really start serving the community," said Dan Johnson, CEO designee of Arise Community Credit Union.
Arise has submitted a charter application to open a Black-led credit union in North Minneapolis.
Arise officials say the Northside is a financial desert that is underserved by legitimate financial institutions.
They want to offer people who don't have easy access to banks an alternative to using payday lending or check cashing services that are costly and can charge very high interest rates.
"Big box banks, which I think there's a great place for them, they're beholden to shareholders. Let's just call it what it is. We as a credit union are owned by the members. So when we do better, they get less interest paid and more interest earned," said Johnson.
So far, Arise has received 2000 pledges from individuals and institutions to start accounts once it opens, which would translate into 6 million dollars in deposits.
Arise has also raised $1.5 million in capital, but officials want to bring in another $500,000 to make regulators feel more comfortable giving them a charter.
"So many times, credit unions start, and then they get absorbed by a larger credit union. We don't want to do that. We want to plant our flag in North Minneapolis and then plant subsequent flags all over the Twin Cities," said Johnson.
Arise believes it can help community members, particularly those of color, grow generational wealth instead of debt and make a difference in North Minneapolis and beyond.
"This is a great state and city to live in and grow up in, and we have wonderful resources. I want to add to those resources by getting this credit union started," said Johnson.