Bridges - Winter 2012/2013

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PUBLISHED QUARTERLY

BY THE COMMUNITY

DEvELOPMENT

DEPARTMENT OF

THE FEDERAL RESERvE

BANK OF ST. LOUIS

L i n k i n g L e n d e r s A n d C o m m u n i t i e s Winter 2012-2013

Bridges w w w . s t l o u i s f e d . o r g

2 4Bank On Louisille HelpsLead the Way to Financial

Empowerment

Going Digital? News

from the Managing Editor 6

continued on Page 3

By William Elliott

O

ne o the primaryresearch questionsdriving the work o

the Assets and Education Ini-tiative (AEDI) at the Universityo Kansas is this: Are all typeso college nancial aid createdequal? Increasingly, the evi-dence suggests that the answermay be nothat assetapproaches to helping children

pay or higher education

may yield supe-rior educationaloutcomes and may

provide or a betteruture than relying onstudent loans.

Compared tostudents withoutsavings designated

or college, thosewith collegesavings aretwice as likelyto be on course

St. Louis Community CreditUnions Newest Branch

Represents Innoatie

Community Partnership

Are All Types of College Financial Aid Created Equal?

tion remainsDoes saving orcollege only make a dierencein students achievement at thepoint when they have savedenough to pay most o their

college expenses? I so, howcan systems be designed andnanced to provide adequatesavings, especially or low-and moderate-income (LMI)

or college completion.1 Whileresearch about the precisepsychological, social and insti-tutional mechanisms throughwhich these eects are realized

is still evolving, it is increas-ingly clear that saving changeshow students think aboutcollege. Importantly, becauseassets accumulate as students

Having a school savings account with

even $1 or less increases the odds

that a child will enroll in college.progress toward college, thechanges in educational expec-tations and behavior that occurcan improve academic peror-mance, helping them prepareboth nancially and intellectu-ally or higher education.2

Evidence o these edu-cational outcomes throughstudents careers has contrib-uted to interest in childrenssavings. However, the ques-

students whose amilies areunlikely to be able to contrib-ute signicantly?

Some o AEDIs recentresearch suggests that evenvery small account holdingsmay yield signicantly better

educational outcomes thana complete absence o sav-ings. Having a school savings

2013 iStckpt.cm / YinYang

IN

D

EX

T h e F e d e r a l r e s e r v e B a n k o F s T . l o u i s : C e n T r a l T o a m e r i C a s e C o n o m y

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I

n the Spring 2012 issue oBridges, we announced thetransition o the newsletter

to an online-only publication.So, why am I bringing thisissue back to your attention?

Well, as a part o the process,we asked that you provideyour e-mail address in orderto receive alerts or new issueso the newsletter. You weredenitely paying attention.

Reader responses wereamazing, heartelt and greatlyappreciated. Obviously, this isnot an issue that people ignore.Many subscribers strongly

supported retaining the printversion, while some did preeronline only, and a ew would

choose access to both the printand online ormats. Looks likewe all have our preerred meth-ods o reading Bridges!

You spoke. We listened.We truly do not want to takethe plunge into the digitalworld and leave any o ourloyal readers behind. So,

weve reached what we hope isa compromise that delivers awin-win to all o us.

Beginning with the nextissue, we will continue to printand mail Bridges to subscrib-ers or whom we do not havean e-mail address. Those withe-mail addresses will receive

notication that the newslet-ter is live and available online.

We will not accept any newsubscriptions or print copies.

All digital subscribers will beable to print the newsletter ithey wish and save and retrievecopies easily.

There are numerous other

benets o providing youre-mail address. Increasingly,that is how we communicate.

We can ensure that you receiveinvitations to our events, lists

o resources and noticationso special projects, to name justa ew. You can unsubscribe at

any time (but we dont thinkyoull want to!). So, i youhavent provided us with youre-mail address, please take amoment to do so at www.stlou-ised.org/br/subscribe.

Daniel Davis

Going Digital?News from the Managing Editor

Bridges ONLINE

I yu avent prvided us wit

yur e-mail address, please take

a mment t d s at

www.stlouisfed.org/br/subscribe.

o supplemental material (e.g.,sidebars, primary documents)and multimedia (e.g., video,

audio, interactive illustrations)to bring stories to lie, and beinga bit more gentle on the earth.

One thing that will denitelynot change is our commitmentto meet the news and inorma-tion needs o our readers. Wehope that you will join us inthis move into a digital uture

and share the newsletter withyour riends and colleagues incommunity development andrelated elds.

We invite you to send usyour comments and sugges-tions on how we can continueto serve you most eectively inthe digital age.

Daniel Davis is managing edi-tor ofBridges and manager ofcommunity development at theFederal Reserve Bank of St. Louis.

Bridges will appear online

in the same amiliar ormatsubscribers are accustomedto; so, they will be able to readthrough the publication ontheir computers or tablets inthe same manner as they didwith the print version. And wewill continue to work to makethe newsletter available on a

wider range o mobile devices.The advantages o the onlineversion are many, includingexpanded coverage, easy link-ing to external web sites, use

L I N K I N G L E N D E R S A N D C O M M U N I T I E S#

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education may turn college intoan important goal rather than

just a dream, with a strategy orhow to overcome cost barriers.These dierences in outcomesare sustained throughout thecollege experience; or example,a student who has designatedschool savings rom $1 to $499is more than our and a haltimes more likely to graduaterom college than a child withno savings.3 (See Table 1.)

This is not to say that poli-cies that provide matches or

students savings and use

account with even $1 or lessincreases the odds that a childwill enroll in college.3 Obvi-ously, these small amounts omoney do not make a hugedierence in students actualcollege nancing, but they mayhelp students see themselvesaspeople who go to collegewhat is oten called a college-bound identity. Just openingan account and designating

some o that money or higher

College Financial Aidcontinued from Page 1

These small amounts o money

may help students see

themselves aspeople who go to

collegewhat is oten called acollege-bound identity.

TABLE 1

Correlation of Savings Accounts with Educational Outcome

Savings AccountEducational Outcome3

Enrll in Cllege Graduate rm Cllege

Scl-designated savings $500+ 72% 33%

Scl-designated savings $1-$499 65% 25%

Scl-designated savings

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FIGURE 1

Increase in Open Accounts, July 2010 through June 2012

Jul-Sep

2010

Oct-Dec

2010

Jan-Mar

2011

Apr-Jun

2011

Jul-Sep

2011

Oct-Dec

2011

Jan-Mar

2012

Apr-Jun

2012

12,000

10,000

8,000

6,000

4,000

2,000

0

N

umberofOpenAccounts

Total accounts opened: 10,144

and Revitalization (CSR) andEconomic Development.

CSR now spearheads thisinitiative, with 16 banks andcredit unions and more than100 community organizations,aith-based and governmentagencies in support. In August

2012, two years ater its launch,BOL celebrated the opening o10,144 new accounts, represent-ing those who were previouslyunbanked by choice or were inneed o a second chance. (SeeFigure 1.) O these accounts, 85percent have remained open.

In addition, BOL nancial

education provider partnersacross the community reportedthat last year 1,693 participantswere engaged in topics thatincluded budgeting and saving,nancial goal setting, buildingand maintaining good credit,predatory lending, and home-ownership. (See Figure 2.) For

a summary o BOLs accom-plishments, visit www.bankon-louisville.com.

Louisville Mayor GregFischer, a strong supporter

By Tina Lentz

Over the last ve years,Louisville has madetremendous strides

in its nancial empowermentintegration eorts throughthe citys ability to convene

stakeholders across all relevantsectors and the work beingdone to increase the nancialcapability o clients seekingsocial services. The Bank OnLouisville (BOL) initiative hasserved as an engine to drivemany o these eorts.

BOLs roots emerged in

response to the 2009 FDICNational Survey o Unbankedand Underbanked Households,which reported that Louisvillehad a combined 76,500 house-holds that ell into those twocategories. In 2010, ater nearly18 months o collaboration rompublic, private and nonprot

sectors, BOL was launchedthrough an innovative partner-ship between two LouisvilleMetro Government depart-mentsCommunity Services

o BOL, helped to establishstrategic goals or 2012-2013,which include:

35 percent increase inaccount openings,

100 percent increase innancial education partici-pation and

30 percent increase inpartners.BOLs impact in the commu-

nity reaches much urther; theinitiative has served as a cata-lyst or the receipt o a grantrom Living Cities, member-

ship in the Cities or FinancialEmpowerment (CFE) coalitionand a unique partnership withHelloWallet.

Living Cities Grant

In January 2012, due in largepart to the work being done by

BOL, Louisville was selected toreceive a $164,000 grant romLiving Cities to boost nancialempowerment strategies amongservice providers or the cityshomeless population. Theunds provide an opportunity

Bank On Louisille Helps Lead theWay to Financial Empowerment

2013 Sutterstck.cm / Tdd Taulman

L I N K I N G L E N D E R S A N D C O M M U N I T I E S#4

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to work closely with more thana dozen social service providersto create a nancial empower-ment ramework and buildcapacity within the agencies toincrease access to empower-ment services and resources.

As the social services pro-vider or Metro Government,CSR assists thousands oLouisville residents each yearwith a variety o programs,including emergency nancialassistance, household incomesupports, energy aid and

nutrition programs, supportiveservices to amil ies who arehomeless or at-risk o beinghomeless, as well as educa-tion, training and employmentopportunities.

By championing the need orurther integration o asset-building strategies, CSR and

other partners hope to improvethe nancial stability o clientsthey serve; address the ever-increasing demand on publicresources; and create a modelthat can be replicated by other

social service providers to gen-erate a much broader system-wide change.

Cities for Financial

Empowerment Coalition

In April 2012, citing thework that the city has done inimproving the nancial healtho its low- to moderate-income(LMI) residents through BOLand other initiatives, Louis-ville was invited to join 11other municipalities thatcomprise the CFE coali-

tion. Launched in 2008 bythe mayors o New York City(Michael Bloomberg) and SanFrancisco (Gavin Newsom),the group brings togetherlocal governments interestedin advancing programs thatincrease nancial security orstruggling households.

Membership in this coali-tion o ocials rom Chicago;Hawaii County, Hawaii;Los Angeles; Miami; New-ark; New York; Providence,R.I.; San Antonio; San Fran-

cisco; Savannah, Ga.; andSeattle can greatly infuenceLouisvilles momentum as amunicipal leader in nancialempowerment.

HelloWallet Partnership

In December 2012 BOLembarked on an innovativepartnership with Hello-

Wallet, which generously

Bank On Louisville has

served as a catalyst or thereceipt o a grant rom Living

Cities, membership in the Cities

or Financial Empowerment

coalition and a unique

partnership with HelloWallet.

and share lessons learned tosupport other BOL partneragencies that will participatein the HelloWallet program inthe uture.

Financial Empowerment Summit

The Living Cities undingis also providing an opportu-nity or Louisvil le to hold aFinancial Empowerment Sum-

FIGURE 2

Financial Education Cumulative Participation Numbers

(across 10 partners)

1Q 2Q 3Q 4Q

0

200400

600

800

1,000

1,200

1,400

1,600

1,800

NumberofParticipants

2012 Goal = 500

2012 Actual = 1,693

Goal exceeded by 338%

donated 1,000 ree two-year subscriptions valuedat $90,000. This web- andmobile-based application helpsits subscribers/members bettermanage their nancial lie byhelping to grow savings, pay

down debt, plan or their utureand manage their nancialresponsibilities through person-alized, independent guidance.

Family Scholar House andCommunity Action Partner-shiptwo o BOLs commu-nity partners that work withLMI householdsare serving

as pilot agencies or Hello-Wallet. Caseworkers at theseorganizations will assist inintroducing the app to clients.They will also track progress

mit in March 2013 to enhancepublic, private and communitypartnerships with a ocus onnancial empowerment and agoal o developing a commu-nity-wide strategy.

For more inormation about

the BOL initiative, visit www.bankonlouisville.com. To learnmore about the Departmento Community Services andRevitalization and other relatedprograms and initiatives, visitwww.louisvilleky.gov/csr.

Tina Lentz is executive ad-

ministrator or LouisvilleMetro Community Services andRevitalization, and programadministrator or Bank OnLouisville.

O n t h e i n t e r n e t a t w w w . s t l O u i s f e d . O r g#5

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By Jeanne C. Marra

On the morning o Janu-ary 24, representativesrom St. Louis Com-

munity Credit Union (SLCCU),Carrollton Bank and KingdomHouse joined with St. Louis

community members at large tocelebrate the opening o a newmicro-branch o SLCCU andthe partnership that made thebranch possible.

The morning had all theanare you would expectrom a typical ribbon-cuttingceremonyballoons, ood and

speeches rom leadership. Butwhat stole the show were twoopening songs by smiling 4- and5-year-olds rom the Blue Roompreschool class at KingdomHouse, who represent the ami-lies and shared commitmentbehind the celebration itsel.

An Oasis in a FinancialInstitution Desert

The 310-square-oot micro-branch is located within theKingdom House social servicesacility just south o down-town St. Louis. The branch isSLCCUs 11th location.

The newest Kingdom

House branch speaks to ourunwavering commitment oproviding access and nancialempowerment to individualswho need our services, said

anchor in the low- to moderate-income (LMI) community,oering a variety o transor-mative community servicesthat annually help thousandsto achieve sel-suciencyand gain economic indepen-dence. Using a holistic service

approach with individuals andamilies, Kingdom House oerschild care, ood and cloth-ing assistance, educationalprograms, job training, youthand teen programs, and seniorcompanions. According toTom Hough, CEO o Carroll-ton Bank, it makes sense that

Kingdom House would leadthe charge to also oer nan-cial literacy training and basicbanking services, loans, low-eechecking and credit-building

St. Louis Community Credit Unions Newest BranchRepresents Innoatie Community PartnershipMicro-branch Becomes Oasis in St. Louis Financial Serices Desert

LEFT To RIGhT: Tim Butler (bard member, SLCCU), Jasmine Guest (member services representative, SLCCU), Sctt Walker (executive

directr, Kingdm huse), Tm hug (CEo, Carrlltn Bank), Gerald Brks (bard cairman, SLCCU), Angela Brks (bard member,

SLCCU) and Karen Kizeart (branc manager, SLCCU).

Patrick Adams, president andCEO o SLCCU. We lookorward to working with King-dom House clients and arearesidents to provide aordable,alternative banking optionsthat they deserve.

Scott Walker, executive

director o Kingdom House,said that the new micro-branchis especially valuable to thecommunity that it servesbecause it is situated in whatwas previously known as anancial institution desert.There is nothing close by,within walking distance or

even a bus ride away until yougo to the downtown area,Walker said.

For more than 110 years,Kingdom House has been an

programs through its partner-ship with SLCCU.

At Kingdom House, we havebeen working on developingpathways out o poverty or ourclients, and lie-skills classeshave been a part o that,

Walker said. The nancial

literacy classes that have beenoered here by CarrolltonBank and St. Louis Commu-nity Credit Union, and thenew branch, are a big piece oconnecting the dots among ourvarious services.

Ocially launched with asot opening in mid-December,

the micro-branch openedalmost 40 new accountswithin the rst ew weeks andextended $10,000 in small-dol-lar loans, such as the Freedom


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Loan, a payday loan alterna-tive; Credit Matters, a credit-builder loan; and Payday Saver,a payday consolidation loan.The branch is currently openthree days a weekMondays,

Wednesdays and Fridays.

Additional Partnership Initiatives

The partnership betweenSLCCU and Carrollton Bankormally began in May 2012,when they announced a 4-year,$800,000 collaborative agree-ment to increase lending, pro-

vide greater access to aordable

Carrollton and SLCCU havejoined together to open andoperate the CU Excel Center, anancial literacy and lie-skillseducation acility located inNorthwoods, an LMI suburb oSt. Louis. The center oers reeconsumer resources, nancialeducation classes and seminarsto the public, taught primar-ily by employees rom the twoorganizations, with help rompartner community groups.

Practicing what it preaches,Carrollton is also providing a

$500,000 loan und or small-

similar mission-mindednessand commitment to make asustainable dierence in theircommunities.

Gerald Brooks, chairman oSLCCU, described the initiativeat the ribbon-cutting ceremonyas a special partnership thatputs to bed the myth thatcredit unions and banks cantwork together.

By ocusing on what drawsthese institutions together andusing innovative strategies tocapitalize on organizational

assets, these three communitypartners have created an inno-vative model that has resultedin a win-win outcome or theirown organizations and theircommunities.

Brooks summed it all up:When a community thrives,we all thrive.

Jeanne C. Marra is a senior com-munity development specialistat the Federal Reserve Bank ofSt. Louis.

ToP: Prescl cildren at Kingdm huse were par t te celebratin te new cap-

ter in teir cmmunitys istry. BoTToM: Tm hug (let) rm Carrlltn Bank and

Patrick Adams (rigt) rm SLCCU rged a unique partnersip between bank and credit

unin, dedicated t make a dierence in teir cmmunities.

The newest Kingdom Housebranch speaks to our unwaveringcommitment o providing accessand fnancial empowerment toindividuals who need our services.Patrick Adams, president and CEO o SLCCU

services and expand nancialeducation to the local under-served and LMI population.SLCCU is a certied CDFI thathas more than 50,000 mem-bers and more than $220 mil-

lion in assets. Eighty percento its customers are consideredLMI. Carrollton Bank is a pri-vately held, employee-ownedbank with nine oces andmore than $1 billion in assets.

St. Louis Community CreditUnion lives to serve the under-served community, says Hough.Really, no one does that in ourindustry. We are very ortunateto work with them.

In addition to the new micro-branch at Kingdom House,

dollar loans, such as SLCCUsFreedom Loan and CreditMatters. In addition, Carroll-ton also oers two additionalloan programs not currentlyoered at the credit union

low-down-payment FHA homeloans, available at SLCCUoces, and commercial loansto area business owners.

Unlikely Partnership Results in

Win-Win

As a credit union and a bank,the two institutions operateunder dierent charters, whichwould normally become awedge between them workingtogether. What connects themas partners, they say, is their


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By Jeanne C. Marra

Bank-On Save-Up St.Louis, a community-based nancial educa-

tion and public awarenesscampaign, recently launchedin the St. Louis metro com-munity. The initiative has seta goal to open 20,000 newbank accounts or unbankedSt. Louis metro residents over

the next two years, and tomaintain or grow 80 percento those accounts.

The St. Louis eort is mod-eled ater Bank On initiativesin other cities and is designedto increase access to main-stream nancial products andservices among low- and mod-

erate-income (LMI) individuals.The Community Developmentdepartment at the FederalReserve Bank o St. Louis ispartnering with campaignorganizers by serving as theocial data collector and willreport its ndings quarterly tosponsors o the campaign, theSt. Louis Regional UnbankedTask Force (Task Force).

According to Alex Fen-

noy, director o communitydevelopment at MidwestBankCentre and co-chair othe eort, the initiative beganalmost three years ago, aterthe rst o two FDIC studiesrevealed the high number ounbanked households in theSt. Louis area. Ater learning

that 88,000 households7.6 percentin the St. Louismetro were unbanked, andthat St. Louis ranked rstin the nation with the high-est percentage o unbanked

Ar ican-Americans, a numbero nancial institutions andcommunity partners ormed

the Task Force. A subsequentstudy conducted by the FDICin 2011 and released last allechoed the need, revealingthat 111,000 St. Louis metrohouseholds9.7 percentdo not have bank accounts.

Ar ican-Americans comprise33.9 percent o those house-holds, making St. Louis thirdin the nation or unbanked

Ar ican-Americans.The Task Force ormed a

steering committee to study

the issue and began a ormalprocess two years ago to iden-tiy ways to address the needso the unbanked. This groupand each o its subcommitteesare comprised equally o bankand non-bank partnerswhatFennoy calls the yin and theyang. The process has beena true collective, collaborative,group eort, he said.

no-cost accounts, low mini-mal dollar amounts to openaccounts, ree online bankingservices, and saeguards tohelp customers avoid over-drat and other ees. Thecollaboration component withcommunity partners madethis eort a great t as well.

Today, Bank-On Save-UpSt. Louis is comprised o 18

Bank-On Sae-Up Kicks Off in St. Louis

We looked at everynational initiative thats outthere. We had to decide: Dowe create something our-selves, or is there alreadysomething that makes sense,explained Fennoy. Lisa Potts,case manager at Peoples

Community Action Corp.,and coordinator or the TaskForce, added, We broughtin a lot o experts who hadtouched not only Bank On[programs] but also otherasset-building initiatives tosee what was best or ourcommunity.

Both agree that the decisiono the steering committee toadopt a Bank On eort in St.Louis was ideal because oits promotion o low-cost or

WHAT QUALIFIESAS A BANK-ONSAvE-UP ACCOUNT?

opening depsit $100 r less

Minimum mntly balance

($0 - $100) Free nline banking

Free ATM/debit card

Lw- r n-cst cecking accunt

($10 r less accunt ee)

Lw- r n-cst savings accunt

Strongly encouraged:

Cnsider alternative rms ID

Prmte direct depsit

Encurage fnancial educatin

oer secnd-cance

cecking ptins

participating nancial institu-tions and more than 40 com-munity partners.

Fennoy said that enrollmentin a participating Bank-OnSave-Up account will helpLMI amilies save money byavoiding costly alternative

nancial providers, such ascheck-cashing companiesand payday lenders. Byusing bank accounts insteado these alternative sources,amilies can save hundredso dollars annuallyas muchas $1,200. He also stressedthe importance o the savingscomponent o the Bank-OnSave-Up eort.

In the meetings we heldwith both nancial institu-tions and nonprots, they


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CFED Releases 2013 Assets &Opportunity Scorecard

Despite strng signs ecnmic

recvery, millins Americans are

still living n te brink fnancial

disaster, accrding t CFEDs 2013

Assets & opprtunity Screcard.

ttp://assetsandpprtunity.rg/

screcard/

Philanthropy in the New Ageof Government Austerity

hw are pilantrpists w

pursue scial cange revising teir

strategies t align wit te current

ecnmic climate?

www.bridgespan.rg/

getattacment/447da17-6296-

4581-8daa-2dd359bb313d/

Pilantrpy-in-te-New-Age--Gvernment-Austerit.aspx

Best-Performing Cities 2012

Te Milken Institutewse missin

is t imprve lives arund te wrld

by advancing innvative ecnmic

and plicy slutins tat create

jbs, widen access t capital and

enance ealtas released

its reprt n last years best-

perrming cities. Tis index ranks

U.S. metrplitan areas by w well

tey are creating and sustaining

jbs and ecnmic grwt. ttp://

bestcities.milkeninstitute.rg/best-

perrming-cities-abut.tml

Census Bureaus AmericanCommunity Survey Estimates

Te U.S. Census Bureau recently

released estimates rm te Ameri-

can Cmmunity Survey r te cm-

bined years rm 2007 t 2011,

prviding te nly statistics dwn t

te neigbrd level n scl

enrllment, jbs, using and many

ter measures. www.census.gv/

newsrm/releases/arcives/

american_cmmunity_survey_acs/

cb12-228.tml

U.S. Economic Development

Administrations Triple Bottom

Line Tool

Te U.S. Ecnmic Develpment

Administratin as created an

nline tl tat can be used timprve design, decisin-making

and cmmunicatin abut invest-

ment alignment wit triple bttm

line (TBL) gals r scial, envirn-

mental and fnancial perrmance.

Te tl was develped wit

signifcant practitiner input and is

respnsive t a wide range cm-

munities. www.tbltl.rg

kept telling us that gettinga bank account wasnt thebe-all, end-all, Fennoy said.Thats why we wanted theSave-Up component, becauseyoure starting to build assets,and thats critical whenmoving rom the alternativenancial services into themainstream. Youve got tobuild assets, even i its $5 amonth. Start saving.

Financial institutions willpartner with community-based organizations to engage

in outreach activities andnancial education opportu-nities that campaign coor-dinators consider critical tothe success o the initiative.Classes and training sessionswill be available to partici-

outcomes, but also or itspotentia l socia l impact. Atthe Fed, we have worked withBank On initiatives in othercities and have learned thatthe empowerment that comeswith using mainstream nan-cial services has a widespreadand generational impact oncommunities. Research hasdocumented that those whouse bank accounts and learnto save are more likely tograduate high school, areless likely to be incarcerated

and will more likely pursuehigher education than thosewho do not. This is not just anancial issue; it has rami-cations in the community aswell. Im delighted that thiseort is being driven by the

RESOURCES

Research has documented thatthose who use bank accountsand learn to save are more likelyto graduate high school, are lesslikely to be incarcerated andwill more likely pursue highereducation than those who do not.

pants ree o charge andwill cover a variety o top-ics, including the benets omainstream banking, savingstips and opportunities, anddebt-management strategies.

St. Louis Fed CommunityDevelopment Ocer YvonneSparks considers the Bank-OnSave-Up initiative importantor the community not onlywith regard to economic

community, and that so manynancial institutions are tak-ing on this role.

For more inormation onBank-On Save-Up St. Louis,visit www.getbankednow.org.

Jeanne C. Marra is a senior com-munity development specialist atthe Federal Reserve Bank ofSt. Louis.


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Spanning the RegionThe region served by the Federal Reserve Bank of

St. Louis encompasses all of Arkansas and parts of Illinois,

Indiana, Kentucky, Mississippi, Missouri and Tennessee.1 Million Cups Launches

in St. Louis

1 Million Cups, a programoriginated in Kansas City,has expanded to St. Louis.Innovate St. Louis, throughits Inormat ion Technol-ogy Entrepreneur Network(ITEN), serves as theprogram organizer,

helping St. Louisentrepreneursconnect withone anotherover coee.For one houreach Wednes-day morning at thestudios o the local PBS

station, 1 Million Cups givestwo early-stage startups theopportunity to present theircompanies to a diverse audi-ence that includes mentors,advisers, researchers, build-ers, makers, and aspiring andexisting entrepreneurs. Inthe education-based orum,

each startup ounder pres-ents or six minutes andthen ields audience ques-tions or 20 minutes more.For more inormation, visitwww.1millioncups.com orollow @1MillionCups onTwitter.

The Need To Rebuild Household

Balance Sheets

The net worth o manyU.S. households was severelyimpacted by the inancial

crisis and ensuing recession.Severe declines in home val-ues and stock prices, togetherwith many job losses and

weak income growthamong those who

held on to theirjobs, exposedthe precari-ous debt-ladenbalance sheets

many amilies hadcreated.In the upcoming

annual report o the Federal

Reserve Bank o St. Louis,ind out which groups opeople lost the most wealthbecause o the downturn inthe economy, why its impor-tant or those households torebuild their balance sheetsand what the latest researchhas to say about the impact

o household inancial stabil-ity on the broader economy.Many o the amilieswith weak balancesheets going intothe crisis haveyet to recoverinancially, whileothers, who werebetter diversi-ied and had lessdebt, have beneitedrom rising stock pricesand low interest rates. Thus,

the economic recovery todate has been biurcatedamong households o vary ingbalance-sheet strength andremains weak overall.

To sign up or an e-mail

alert when the annual reportis published this spring, orto subscribe to the paperversion (U.S. addresses only),see ww w.stlouised.org/subscribe.

Historic Soulsville,

Tenn., To Receive

Access toBroadband

A new wire-less, broadbandnetwork is comingto help Soulsvillesmall-business ownersand residents create jobs andboost their economic oppor-

tunity. The Delta RegionalAuthority (DRA) is proceedingwith a new $250,000

investment, coor-dinated throughthe CommunityLIFT Corp., toestablish a Wi-Finetwork that will

allow residentsto work, learn and

ully utilize inorma-tion technology in their

daily lives.

This innovative projectwill have signicant businessdevelopment implicationsin the Soulsville communityby giving area businesses alarger capacity or innovation,

eciency and communication.The investment will also bringMemphis its rst high-speedwireless, broadband neigh-borhood network; leverage

an additional $157,000 inprivate investment

or the CommunityDigital Advantage

Program; andalign Soulsvillewith the State oTennessee reshor-

ing telecommuni-cation strategy.

U.S. Rep. SteveCohen, who represents Mem-phis/Shelby County, said, The

benets o broadband and itseciency have transormedhow we approach education,health care, public saety,homeland security, the arts,e-commerce and so manyother industries across ourcity, state and country. Thisnew investment in broadbandwill go a long way towardhelping Soulsville create

jobs, grow our economy andimprove our communitysquality o lie.

0L i n K i n g L E n D E R S a n D C O M M U n i T i E S

7/30/2019 Bridges - Winter 2012/2013

11/12

BRidgesBridges is a publication o the Commu-nity Development Oce o the FederalReserve Bank o St. Louis. It is intendedto inorm bankers, community develop-ment organizations, representatives o

state and local government agencies andothers in the Eighth District about currentissues and initiatives in community andeconomic development. The EighthDistrict includes the state o Arkansas andparts o Illinois, Indiana, Kentucky, Mis-sissippi, Missouri and Tennessee.

Yvonne SparksCommunity Development Ocerand Executive Editor314-444-8650

Daniel Davis

Community Development Managerand Managing Editor314-444-8308

Maureen SlatenSenior Editor314-444-8732

Community Development StaffSt. Louis: Matthew Ashby

314-444-8891Jeanne Marra314-444-6146Brandon Farber

314-444-7439Johanna Gruenewald314-444-8743

Memphis: Kathy Moore Cowan901-579-4103Teresa Cheeks Wilson901-579-4101

Little Rock: Drew Pack501-324-8268

Louisville: Lisa Locke502-568-9292Faith Weekly

502-568-9216

The views expressed in Bridges are notnecessarily those o the Federal ReserveBank o St. Louis or the Federal ReserveSystem. Material herein may be reprintedor abstracted as long as Bridges is credited.Please provide the editor with a copy oany reprinted articles.

Free subscriptions are available by calling314-444-8761, by e-mail [email protected] oronline at www.stlouised.org/br/subscribe.

CalendaR

aPRil

10-1118th Annual Rural Development

Conference: Achieving Sustainable

ProsperityCookeville, Tenn.

Spnsrs: USDA Rural Develpment,

Tennessee Valley Autrity, Tennessee

Tec University, Tennessee Department

Ecnmic and Cmmunity Develpment

ttps://epay.tntec.edu/C20205_ustres/

web/stre_main.jsp?SToREID=33

11

Exploring Innovation in CommunityDevelopment Audioconference: Case

Management: A Holistic Approach to

Asset BuildingAudioconference

Spnsr: Federal Reserve Bank St. Luis

www.stluised.rg/bsr/

EI_CDAudiCnerence

11-12Resilience and Rebuilding for Low-Income

Communities: Research to Inform Policy

and PracticeWashington, D.C.Spnsrs: Federal Reserve System

www.rbatlanta.rg/news/cnerences/

13resilience_rebuilding.cm

12The Intentional Entrepreneur

Memphis, Tenn.

Spnsr: SEEDCo and Kauman FASTRAC

ttp://seedc.afliate.asttrac.rg/

prgram-event-detail.aspx?

peid=Dyj8Yhr0GkuA-v2CRnw-uQ

16-18National Development Council 2013

AcademyWashington, D.C.

Spnsrs: Multiple

ttp://www.ndcacademy2013.rg/

177th Annual Financial Literacy and

Education SummitChicago

Spnsrs: Federal Reserve Bank

Cicag, Visa Inc.

www.practicalmneyskills.cm/

summit2013/register.pp#regrm

20-24The Council for Community and

Economic Research (C2ER) 53rd Annual

Conference & LMI Training Institute

Annual ForumNashville, Tenn.

Spnsrs: Multiple

ttp://www.c2er.rg/cnerence/2013

23Exploring Innovation in Community

Development Audioconference:

Neighborhood Revitalization

Audioconference


Cntact: Fait Weekly at

[email protected]

JUne

12-14Business Alliance for Local Living

Economies (BALLE)Buffalo, N.Y.

Spnsrs: Multiple

ttp://bealcalist.rg/2013-

balle-cnerence

17-18Opportunity Finance Network Midwest

Regional MeetingCincinnati, Ohio

ttp://www.pprtunityfnance.net/

newsletter/eb13.tm

20-27Money Smart WeekNationwide

Spnsrs: Multiple

www.mneysmartweek.rg

29-My 2Tennessee Basic Economic Development

CourseNashville, Tenn.

Spnsr: University Tennessee Instituter Public Service

ttps://cis.tennessee.edu/train/

prgramtraining/TNEDPT/Pages/

TBEDC.aspx

MaY

5-8AEO National Conference: Tilt Forward:

The Power of Microbusiness

St. Louis, Mo.Spnsrs: Multiple

www.micrenterprisewrks.rg

7-9Annies Project: Professional

Development Program for Educators

Serving Farm Women in the Southern

SARE RegionJackson, Miss.

Spnsrs: Multiple

ttp://www.ucs.iastate.edu/mnet/

annienatinal/me.tml

13-17Exploring Innovation WeekLittle Rock,

Ark.; Louisville, Ky.; Memphis, Tenn.;

St. Louis, Mo.


Cntact: Lisa Lcke at

[email protected]

online onlY

www.stlouisfed.org/

publications/br

In addition to the print version,each issue of Bridgesoffers

information that is exclusively

online. This content expands

on topics in the current issue

or a past issue. Online content

for the winter issue is:

8 From the 8th Podcast:

Louisvilles 55,000 Degrees

Housing Market Conditions,

December 2012 ReportCommunity Development

Outlook Survey, October

2012 Report

#O n T h E i n T E R n E T a T w w w . S T L O U i S f E D . O R g

7/30/2019 Bridges - Winter 2012/2013

12/12

PRSRT STD

U.S. PoSTage

paid

ST. LoUiS, Mo

PeRMiT No. 444

Have you

heaRdCDFI Fund Announces Nearly $18Million in Bank Enterprise Awards

Te U.S. Department te Treasurys

Cmmunity Develpment Financial Insti-

tutins Fund (CDFI Fund) as awarded

nearly $18 millin t 59 FDIC-insured

depsitry institutins r serving ec-

nmically distressed cmmunities acrss

te natin. Te awards are being made

trug te Bank Enterprise Award (BEA)

Prgram; awardees were selected ater a

cmpreensive review 71 applica-

tins received by te CDFI Fund rm

fnancial institutins acrss te natin

tat requested mre tan $88.5 millin

in unding. Te activities tat qualiy

tese institutins r BEA Prgram

awards ccur in census tracts were at

least 30 percent te ppulatin lives

at r belw te natinal pverty level

and were te unemplyment rate is 1.5

times abve te natinal average.

Cllectively, tese depsitry

institutins increased teir lans and

investments in distressed cmmuni-

ties by $383.3 millin; increased teir

lans, depsits and tecnical assistance

t Cmmunity Develpment Financial

Institutins (CDFIs) by $21.1 millin;

increased teir equity and equity-like

lans and grants t CDFIs by $258,000;

and increased te prvisin fnancial

services in distressed cmmunities by

$5.5 millin. Fr mre inrmatin,

including a list award recipients,

visit www.cdfund.gv/news_events/

CDFI-2012-45-CDFI_Fund_Annunces_

Nearly_$18_Millin_in_Bank_Enter-

prise_Awards.asp.

New Mortgage Protection RuleProtects Borrowers and Banks

In January, te Cnsumer Finan-

cial Prtectin Bureau (CFPB) issued

te ability-t-repay rule. It creates a

new lan categry called qualifed

mrtgages wit n interest-nly lans,

limited up-rnt ees and debt burdens

n mre tan 43 percent incme.

Cnsumer and using advcates ave

expressed cncern tat brrwers d

nt ave te ability t redress any

grievances n qualifed mrtgages in

te prime market, tereby seltering

banks. Furter details abut te rule are

rtcming. Fr mre inrmatin, see

www.cnsumerfnance.gv/regulatins/

ability-t-repay-and-qualifed-mrtgage-

standards-under-te-trut-in-lending-

act-regulatin-z/.

HUD Issues Notice of FundingAvailabil ity for SHOP Funds

Sel-elp hmewnersip opprtunity

Prgram (ShoP) unds are awarded t

natinal and reginal nnprft rganiza-

tins and cnsrtia t acilitate and

encurage innvative mewnersip

pprtunities r lw-incme persns

and amilies. Fr mre inrmatin,

including a prgram descriptin and

applicatin instructins, visit www.rural-

me.rg/strage/dcuments/sp13/

sp_2013_prgram_descriptin_and_

applicatin_instructins.pd.

Dollar General Literacy Foundation Youth Literacy Grants

Te Dllar General Li teracy Funda-

tin is accepting applicatins r its

Yut Literacy Grants, wic prvide

unding t scls, public libraries and

nnprfts wrking t elp students w

are belw grade level r aving difculty

reading. Grants up t $4,000 are

awarded t implement new r expand

existing literacy prgrams; purcase

new tecnlgy r equipment t sup-

prt literary initiatives; r purcase

bks, materials r stware r literacy

prgrams. Fr mre inrmatin, visit

www2.dllargeneral.cm/dgliteracy/

Pages/yut_grants.aspx.

Documents

Bridges - Winter 2012/2013