In 2013, nearly 100 executives, state officials and regional economic development leaders held Vermont's first economic summit to discuss why their state is consistently ranked the 40th or 50th worst state to operate a business, according to the Public Assets Initiative, a Vermont-based public policy research organization that covered the summit. The PAI reported that Vermont's tax rate, environmental laws, small size, difficult geography and a shortage of skilled workers make it harder to do business in the state. Other business leaders argued, however, Vermont has more of a perception problem that it's a hard state to run a business.

Whatever the case may be about Vermont's economic challenges, VESCU President/CEO Rob Miller made a strategic decision to leverage the state's laws that allowed the cooperative to invest in an equity crowdfunding entity called Milk Money. Vermont's largest state-chartered credit union also is supporting the development of other cooperatives through its Co-op Capital program and opened an entrepreneurial co-working space at one of its branches. That effort has already led to the development of two start-up companies.

In February, VSECU made an equity investment in Milk Money through the credit union's CUSO.

"Our mission has long been to improve the lives of all Vermonters, and our new vision is really a renewed focus on that mission in a very literal sense," Miller explained. "With our large scale and reach across the state, we are in a very unique position to bring people together and empower the possibilities to help tackle some of Vermont's economic and social challenges. Fostering positive social and economic change enhances the communities in which our members live, creating a real impact on our members outside of our financial products, and that's our ultimate goal."

Through state legislation, any adult Vermonter regardless of income or net worth is eligible to invest in Vermont businesses. Previously, only investors with $200,000 in annual income and a net worth of more than $1 million were allowed to invest in startup and existing small businesses. Milk Money also gives entrepreneurs and small business owners a new source of local capital to grow their companies and create new jobs.

"Credit unions were the original peer-to-peer lenders, and with Milk Money's focus on supporting local investment at the individual level, it was a natural fit," Miller said. "This investment supports those efforts by fostering a healthy, locally-grown entrepreneurial ecosystem, connecting Vermonters with Vermont business and growing the Made in Vermont brand."

VSECU also plans to make equity investments in other industry cooperatives, which is also allowed by state law, a fact that the credit union was not aware of until recently.

Through its Co-Op Capital program, the credit union is looking to invest in co-op health providers, solar installers and hydroponic vegetable producers.

Cooperative businesses bring stability to the local economy because, after five years in business, 90% of cooperatives are still operating compared to 3% to 5% of traditional business, according to VSECU.

Last year, the credit union also opened a new branch in Bennington, which also houses a co-working space for entrepreneurs, freelancers, consultants. Even though the co-working space has been in operation for only a year, it has yielded two start-up firms.

VSECU doesn't see these initiatives as a means to reach marketing goals to promote the credit union. Instead, the credit union sees these social impact projects that already have built-in marketing messages that demonstrate to members and non-members alike the credit union's investment in them and their communities.

"When we sit down to identify opportunities or need to make a business decision, we always look back at whether its supports our mission," Yvonne Garand, VSECU's SVP of marketing and business development, said. "Our mission is to help improve the quality of life for Vermonters, to create greater prosperity in people's lives financially, socially and environmentally."

In some cases, however, credit unions have leveraged marketing channels to tell their social impact stories.

The $192 million FreeStar Financial Credit Union in Clinton Township, Mich., produced a mini-documentary about an organization, Vets Returning Home, which provides transitional housing for homeless veterans to help rebuild their lives.

The documentary tells the stories of three veterans, how they became homeless and how Vets Returning Home helped them get back on their feet.

FreeStar Financial, formerly Central Macomb Community Credit Union, was chartered in 1957 at the Selfridge Air National Guard Base in Harrison Township. While the credit union has expanded to a community charter, it has stayed close to its military roots. About half of its members are either still active or retired from military service.

In addition to donating funds that helped the Vets Returning Home organization open its doors in 2013, FreeStar Financial also provides free financial education to teach homeless veterans how to improve their credit scores, establish a budget and improve their chances of securing loans.

The mini-documentary portrayed the credit union's work to address the troubling issue of homeless veterans.

"How can we repay them for protecting our freedom?" FreeStar Financial President/CEO Drema D. Issac asked.

One way, she said, is to bring public attention to the challenges veterans are struggling with, the difficult circumstances that contribute to their homelessness and to help find them a new home.

"We're not soliciting for these veterans to become members," Issac said. "We're just trying to educate them, help them and let them know that we do care."

Over the summer, the $456 million Envision Credit Union and the $179 million Florida State University Credit Union, both based in Tallahassee, Fla., formed a CUSO and partnered with a local church to open a financial opportunity center that supports the economic development initiatives of an impoverished community.

The Reverend R.B. Holmes Jr. of the Bethel Missionary Baptist Church's Economic Development Ministry knew the key to help people break the payday lending debt trap was to open a credit union.

"One of the ways to address poverty is that you have to help folks get back on their feet educationally and economically," Holmes said. "The faith-based community just can't talk about it, we have to take control and act to rebuild our community. One of the missing components of that economic infrastructure was a real vibrant financial institution in the heart of our community."

Chuck Adcock, EVP for FSUCU, said the Frenchtown Financial Opportunity Center is making steady progress.

"We have opened 128 new accounts at FFOC since inception with a checking account penetration north of 60%," Adcock said. "We have also funded 65 new loans since opening. More than a dozen of these loans were used to pay off a payday lending establishment. We are well on our way to our goal of 1,000 new accounts."

The FFOC has several commercial loans in the pipeline from community businesses that total more than $1.5 million. More than a $1 million of these loans will close in October.