Purpose of the Bill

The purpose of this bill is to foster economic development by providing funding to establish a credit union aimed at serving underserved communities in Minnesota.

Main Provisions

• Funding Allocation: The bill allocates $500,000 for the fiscal year 2026 and another $500,000 for the fiscal year 2027 from the state's general fund. This funding is intended as a one-time grant.

• Nonprofit Partnership: The funds will be granted to a nonprofit organization tasked with establishing a credit union. This credit union can be either federally chartered or state-chartered, in accordance with Minnesota Statutes chapter 52.

• Target Population: The new credit union must focus on serving low-income individuals who have limited access to traditional banking services.

• Service Offerings: It must provide various financial services such as deposits, investments, and loans, which are tailored to the specific needs of the community in a culturally sensitive manner.

• Physical Presence: The credit union is required to have at least one physical location to provide accessible services to its members.

Reporting Requirement

• Outcome Reporting: By February 15, 2028, the commissioner of employment and economic development must submit a report detailing the grant activity and measurable outcomes. This report will be presented to the relevant economic development committees in the Minnesota House of Representatives and Senate.

Relevant Terms

credit union, underserved communities, low-income individuals, nonprofit organization, traditional banking services, economic development, grant, Minnesota Statutes chapter 52.