Bremer Financial Announces New Community Partnership

Bremer Financial Corporation announced that as part of its partnership with West Central Minnesota Communities Action, Inc. and other Minnesota nonprofits, it will be the primary banking partner for all Family Assets for Independence in Minnesota (FAIM) accounts.

Akin to a 401(k) plan for low-wage workers, FAIM is a matched savings project to help low-wage workers (below 200 percent poverty; assets of $10,000 or less) in Minnesota build personal assets. FAIM participants save earned income each month, which is then matched at a 3:1 rate by funds raised from the public and private sectors. Participants can use their saved money toward purchasing a home, pursuing educational opportunities or beginning a small business. In addition to having direct financial benefits, the program provides 28 hours of financial management education, which helps FAIM participants change spending and savings behaviors, including consumer debt reduction and credit repair.

State funding for the project was first provided in 1998 through the FAIM bill sponsored by numerous Minnesota legislators. During his tenure as House Majority Leader, Governor Tim Pawlenty became the main author of succeeding legislation and appropriations. The FAIM pilot project was launched in 2000, and over the next four years it received $1 million from the state, $500,000 from the federal government, and $500,000 from several corporations, foundations and nonprofit groups. As part of the four-year pilot program, Bremer opened "Family Assets" savings accounts for participants, and provided cash management services to Ramsey Action Programs for their business accounts and reserve funds.

The program is slated for expansion thanks to a $1 million federal grant announced at a news conference last week. Minnesota, which ran the largest FAIM pilot program in the country, received the biggest federal grant, said program organizers. Bremer Banks set up the majority of the bank accounts in the pilot phase, and will house all of the accounts in the next round. 

"This partnership with key community organizations has already produced tangible results that are making a difference for people throughout Minnesota," said Stan Dardis, president and CEO of Bremer Financial Corporation. "Bremer's commitment to helping families achieve financial stability and build assets is fundamental to our company's mission, vision and values."

To date, the FAIM program has resulted in more than $566,718 in deposits to Family Asset Accounts. Through Sept. 2003, 184 assets had been purchased: 85 accountholders have closed on homes, 43 small businesses have been launched, and 56 accountholders are making ongoing withdrawals to fund current post-secondary education efforts. By the end of June 2004 an additional 144 accountholders are expected to purchase homes, 101 are expected to complete higher education plans and 119 accountholders are expected to launch small businesses.

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