Help on the way for low-income people in Blount County

Kathy Cormier describes Blount County as "microcosm" of the country, filled with the haves, have-nots, and everyone in between.

For many of these people, the typical bank just doesn't seem to work. They live paycheck to paycheck, often retrieving their money at check-cashing businesses that sometimes charge extremely high fees.

"We can take someone who has never had a checking account, who has never been into a banking institution, we can work with them," Cormier said. "We can start with the little, 'How do you eat an elephant?' One bite at a time. We can teach them that that's how it happens."

Cormier is the program development director for Blount United Credit Union, a new non-profit banking institution.

A forming committee is working to raise $300,000 to get a charter in the state.

If successful, the credit union will offer check-cashing; savings accounts; vacation funds; small, low-interest loans; and, most importantly, free financial education to people who pay a $25 fee to become members.

There are no income qualifications. Cormier says the credit union will be open to anyone who lives, works or worships in Blount County.

"This is a way that they can gain financial independence. We teach them," Cormier said. "In other words, give a man a fish and he eats for a day, but teach him to fish, he eats for a lifetime, but we think that it feeds generations, so what we're going to do is we're going to teach those people so that we're the fishing pole, and they're going to be able to provide for themselves and save for themselves."

Kelly Thomas, a judge for the Court of Criminal Appeals, is on the forming committee. He says the need for such a non-profit has never been greater.

In his courtroom, he's seen firsthand what financial struggles can do.

"I've seen a lot of heartache for families of defendants and victims that is born out of economic hard times," he said. "I'm not making excuses for people's criminal behavior, but you mix alcohol and substance abuse in with economic stresses, and it just spirals out of control."

Thomas said Blount United can help people who are struggling gain financial stability, and that helps everyone in the community.

It's a program that has worked in Bradley County.

Four years ago, community members there started the Bradley Initiative Credit Union.

Organizers there started with $300,000, too. Now, President and CEO Denis Collins says the assets have grown to $2.4 million.

Collins says the program has been successful there, partly because of the generosity of other banks in the area.

Each bank that is FDIC-insured must abide by the Community Reinvestment Act, which requires them to meet the needs of borrowers in all segments of the community.

By donating money to the credit union, the banks fulfill that obligation without taking on any risky loans themselves. Collins says Bradley Initiative has received about $700,000 that way.

He says the same types of partnerships could help Blount County. He's been working with the leaders here for a couple of years.

"Bradley County has already done this," Cormier said. "We're boiler-plating this into Blount. What happens when that goes to Knox and that goes to Monroe, what kind of impact is that going to have on the underpinnings of society? It's our chance, and it brings it right here. We don't have to wait on Washington, it's right here and for us to be able to do that."

The only thing Blount United will not offer is checking accounts. Also, members will only be able to withdraw money from their savings accounts twice a month without paying a fee.

Another unique offering will require customers to qualify financially. Blount United plans to offer IDAs, or Individual Development Accounts. With the help of federal grant money, any qualifying customer who saves a certain amount of money within a three-year period will get a 100 percent match.

That means a customer can double his or her money by saving properly and meeting certain guidelines. However, that money can only be used for certain things, including higher education, a home down payment or opening a small business.

Right now, Blount United is in the fundraising process, hoping to bring in the $300,000 needed for a charter.

If all goes well, Blount United should open by Feb. 1.

To contact or donate to Blount United, call 865-257-0097, or write to Blount United Credit Union, 1025 Hampshire Drive, Maryville, 37801.