Minneapolis City Council to Provide Up to $500,000 to New Minority CU

The Ways and Means Committee of the Minneapolis City Council will provide up to $500,000 in funding for a new credit union serving minority residents in north Minneapolis.

The contract is with the Association for Black Economic Power, which is a community-led nonprofit organization. The organization is seeking to establish Minnesota's only black-led financial institution, the Village Financial Cooperative (VFC).

VFC has obtained approval to form a credit union from the state in late 2018 and is in the late stages of its application for insurance/authorization from the National Credit Union Administration.

The city will provide up to $400,000 in a 10-year, interest-free forgivable loan. The loan can be used for occupancy, leasehold improvements and equipment expenses for retail space located in North Minneapolis.

The loan will be forgiven if the following conditions are met:

• VFC will open a brick and mortar store in North Minneapolis in 2019.
• VFC will provide a financial literacy program for the residents of the City of Minneapolis, with at least 30 classes (300 attendees) in 2019.
• VFC will enroll at least 500 members in checking or savings accounts in 2019.VFC will hold at least six major community outreach events to promote VFC and recruit members.

An additional grant up to $90,000 will be used to cover operating expenses associated with the provision of banking services to, and financial literacy education for, Minneapolis residents.

The credit union expects to open in June 2019.

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