SNELLVILLE, Ga.–Many credit unions across the country are closed today in honor of Juneteenth, also known as Emancipation Day or Freedom Day, which commemorates the ending of enslavement in the U.S.
In addition, as the CU Daily reported earlier, ARISE Community FCU, which was chartered to serve Minneapolis’ Black Community, will officially open its doors today.
“While this day marks a significant achievement in advancing freedom and justice for all Americans, there is still work to be done to reduce the racial wealth gap and provide pathways to build intergenerational wealth,” Inclusiv said in a statement. “Community development credit unions (CDCUs) play a vital role in promoting financial inclusion and access for all.”
The First Black CU
Inclusiv noted that more than 50 years after emancipation, Thomas Patterson founded Piedmont Credit Union, the first Black credit union in the U.S., in North Carolina in April 1918. Piedmont helped Black farmers and sharecroppers avoid exploitative lending practices by offering low-interest rate loans of 6%, creating a pathway for them to avoid the crop-lien system, a credit system used in the post-Civil War South where they borrowed against their future harvests to purchase goods and supplies, AACUC explained.
The low-interest rate loans allowed Black farmers to avoid a perpetual cycle of debt, putting them in a position to profit and accumulate capital, the organization added.
MDIs Continue to Grow
“More than 100 years later, the number of those institutions now known as MDI (Minority Depository Institution) credit unions in the U.S. has grown to 453, including 205 Black credit unions,” Inclusiv said. “Collectively, MDIs represent over $95 billion in assets. From their inception, MDIs have addressed the needs of minority communities historically excluded from the mainstream financial system.”
