MINNEAPOLIS, Minn.–The newly chartered Tribe Federal Credit Union has secured a $130,000 subordinated debt loan to complete its initial capitalization and allow for the commencement of operations.
In May of 2024 Tribe became the first credit union to receive a provisional charter under the NCUA’s provisional charter pilot program, which is aimed at improving the process of chartering a credit union.
“The subordinated debt is critical because the provisional charter does not authorize Tribe to accept member deposits or originate loans until it obtained a targeted level of capital,” according to Olden Lane Securities, LLC, which served as advisor and placement agent “working closely with Tribe on the offering,” the company said.
Tribe was chartered is to increase financial stability, home ownership and financial literacy by providing inclusive financial services that promote economic equity and social justice for all underserved populations.
‘Disenfranchised Communities’
“The disenfranchised and minority communities in Minneapolis have distinct financial needs that traditional banking institutions have often failed to meet,” Headley Williamson, Tribe’s treasurer and CFO said in a statement. “This investment will allow Tribe to meet the significant market demand by offering accessible solutions, and position itself as a leader in serving these communities.”
Added Olden Lane CEO Michael Macchiarola in a statement, “We are very proud to be involved in this groundbreaking project. This is the first time subordinated debt has been secured by a de novo credit union. Once again, Olden Lane showed up for the movement – as the people behind the people helping people.”
Fair & Transparent
Aris Burnet, Tribe’s CEO and vice chairman said in a statement, “We believe that every community deserves access to fair, transparent, and culturally sensitive financial services. By offering low-interest loans, financial literacy programs, and proactive customer support, we aim to empower our members rather than penalize them.”
