Banking on Small: Southeast credit union pairs with communities to provide microsites.

• Author: White, Rindi

In some Southeast Alaska communities, the pinch of not having a local banking option is significant. Need a vehicle loan or want to take out a small home improvement loan? For the 560 residents of Kake, that might require traveling to Juneau--a $541 round-trip plane ticket-to get to a bank to sign loan paperwork. Add in hotel room, meals, and other sundry costs, and the bank trip quickly escalates to nearly $1,000.

It's no surprise, then, that residents of the Southeast towns that are home to Tongass Federal Credit Union (FCU) community microsites are excited to share how happy they are that Tongass FCU is nearby.

"We are very glad to have them here. On a monthly basis, I couldn't tell you how much it saves the community members versus traveling to Juneau," says Kake Tribal Corporation President Robert D. Mills.

Tongass FCU opened a community microsite in Kake in December 2019. It's located on the first floor of the Kake Tribal Corporation building, alongside a tourism office, a car rental program, and a coffee shop. The space is offered by the tribal corporation, and two Kake residents work there part-time, year-round.

"Any extra jobs are going to be a big plus in the community right now," says Ashley Padgett, Kake Tribal Corporation office manager.

The community benefit isn't just about being able to more easily get a loan, Mills says. It also means members who need to cash a check can keep more money in their pocket--a valuable thing, especially for elders in the community.

"Taking a $1,000 check to the store to get cash, they charge you $80 to cash it; it adds an extra struggle," he says.

Seeking Sustainability

Helen Mickel, president and CEO of Tongass FCU, says the idea of small community microsites was prompted after Thorne Bay's Business Association approached the credit union to request a branch.

Thorne Bay, on Prince of Wales Island in Southeast Alaska, is home to about 500 people. Mickel says Tongass FCU leaders at the time weren't sure opening a branch would be sustainable. "We told the community we would need to have a place to go that is either inexpensive or rent-free," she says.

A member of the Thorne Bay Business Association offered space in his sporting goods store, in his basement. That's where Tongass FCU opened in 2006, keeping its cash in a gun safe in the store and operating with volunteer help, recording transactions on paper.

Today, Tongass FCU is in space at the city building, where it pays the cost of utilities it...