Arise Community Credit Union (Proposed) FAQ
Formerly Village financial credit union
What happened to Arise Community Credit Union (Proposed), formerly Village Financial Credit Union?
We want to be clear; Arise Community Credit Union (Proposed), formerly Village Financial Credit Union is still in the process of coming to fruition. Originally the credit union was on a fast track to opening for business in 2019, two years after the idea was conceived in 2017. This was an ambitious timeline that the original organizers had to abandon. They chose to pursue both a federal and a state charter. A charter is a license to operate. Typically securing a charter to start a credit union can take two to three years, depending upon the resources, knowledge, and expertise available. After a period of reorganization of the parent organization, ABEP, is prepared to re-ignite and continue the application process this year 2022.
What steps have been put into place to ensure your efforts succeed now?
Obtaining a new Board and an Executive Director
Strategic planning
Cooperative development and organization with local, state, and federal mentorship
Development of a variety of nonprofit organization policies and procedures to establish financial controls and to facilitate overall monitoring
Key partnerships with local business and financial entities are being established
Activating multiple community membership campaigns
Solidifying local government (city) relationships
How will the Credit Union benefit the community in comparison to a bank?
The primary difference between Credit Unions and banks is that Credit Unions are not-for-profit and provide needs-based consumer services like low-interest rates. Banks are for-profit organizations that seek to earn profits, that are returned to the shareholders. Credit Unions are cooperatives in which returns and extra resources are put back into individuals, programs, and entities within the community through increased/improved services and better rates. They have a broad mission to be community-oriented and to serve people, not profit. A Credit Union like Arise Community will be uniquely positioned to understand the challenges its community members face.
How can the public trust that deposits will be safe?
The Minnesota Department of Commerce requires all state-chartered credit unions to be insured by the National Credit Union Association. As a result, deposits of up to $250,000 are insured.
Why is it taking so long to get the Credit Union up and running?
It usually takes three years. Formerly the Village Financial Credit Union’s process was aborted at the end of its second year, the fall of 2019, because of suspicion of mismanagement. The following year, 2020, the founding organization – ABEP – reorganized its leadership, developed a strategic plan for its operations, and implemented controls in order to prepare to re-launch the application process and to get ready for phase one of now the Arise Community Credit Union’s (Proposed) opening.
What is the anticipated date that the Credit Union will become operational?
The exact date is unknown. ABEP is currently working on a progressive opening/launch of the credit union, starting with basic, limited services and gradually adding services as resources and capacity increase. A projected timeline will be available soon. Provision of services is contingent upon the following factors:
§ Completion of the build-out of promised space
§ Hiring and training of initial department personnel, including a Credit Union CEO
§ Implementation of community-specific financial programs and services
§ Acquisition of specified number of members and specified amount of depositors’ money
Will Northside residents play a role in what products and services are offered?
Absolutely! However, services and lending will primarily be directed toward individual consumers and secondarily to local businesses in order to build and secure community wealth.
Will the CU be owned and operated by Blacks?
Yes, each member owns the credit union. Since members own the Credit Union, to the extent people in the African American community support and become members they will own the Credit Union.