MN HF319

Creates a personal loan guarantee program in the Department of Employment and Economic Development to provide 100 percent guaranteed unsecured loans to Minnesota residents furloughed or working without pay during the federal fiscal year 2019 shutdown that began December 22, 2018.

Loans are limited to the lesser of $5,000, the employee's most recent monthly net pay, or four times weekly unemployment compensation benefits received or eligible to receive; employees may obtain up to three loans during the shutdown.

Personal loans have no repayment requirement until the end of a 90-day grace period after the shutdown ends, must be repaid in full within 180 days after the grace period, and cannot charge interest or fees until 180 days after the grace period.

Financial institutions must be in good standing (not subject to regulatory consent orders or cease and desist orders) to participate; they must notify the commissioner within one day of making a loan and may request guarantee payment 180 days after the grace period ends.

The commissioner must stop accepting loan information the day after the shutdown ends and must wind down and terminate the program by July 31, 2020; any remaining funds are returned to the general fund by August 1, 2020.