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SMALL DOLLAR LOAN
ONLINE CONFERENCE
HOUSEKEEPING
Please Mute Your Microphone and Turn Your Video Off
SMALL DOLLAR LOAN
ONLINE CONFERENCE
THIS PRESENTATION
FloridaProsperityPartnership.org/PRESENTATIONS
OUR FUNDERS
& YOU
NEITHER FLORIDA PROSPERITY PARTNERSHIP NOR UNIVERSITY OF FLORIDA IFAS NECESSARILY
ENDORSE ANY OF THE PRODUCTS THAT WILL BE PRESENTED TODAY,
BUT ARE PRESENTED TO YOU FOR INFORMATIONAL PURPOSES.
WE ENCOURAGE EACH OF YOU TO LEARN MORE ABOUT THEM AND OTHERS IN YOUR AREA ,
PRIOR TO USE OR REFERRAL.
HOUSEKEEPING
Please Mute Your Microphone and Turn Your Video Off
SETTING THE STAGE
What type of loans are non-bank lenders selling in Florida
Presented by Alice Vickers, Director Florida Alliance for Consumer Protection
What is a non bank “small dollar loan”
• Non-bank lenders are lenders other than banks and credit unions offering products to consumers
• Under Florida law, we have three products that non-bank lenders are able to sell if properly licensed to sell.*
*excluding pawn loans
Car Title Loans • Florida vehicle or car title loans are at Chapter 537, Florida Statutes • Loan interest rate is capped at 30% per annum • Maturity date of loan is 30 days after execution of the loan • The lender holds the title to the car • The lender may not sell any insurance with the loan (credit life,
credit disability) • Currently only 3 businesses licensed as title lenders in Florida
VERY RISKY LOANS BECAUSE OF DANGER TO BORROWER OF LOSING
CAR ON A HIGH COST, SHORT TERM, BALLOON PAYMENT LOAN
Pay Day Loans • Florida Deferred Presentment loans or payday
loans are at Part IV, Chapter 560, Florida Statutes • Cost for loans is 10% of loan amount (and a $5
fee per loan) or an annual percentage rate between 280% and 500%
• Loans may be up to $500 • Loans must be paid in a lump sum between 7
days and 31 days of execution of the loan
Pay Day Loans continued • It most cases, lender has authorization to reach into borrowers
bank account for repayment • There are approximately 1100 licensees in Florida selling payday
loans (compare with McDonalds which has 868 Florida locations) • Loans closed in minutes with no determination if the borrower can
repay the loan • Loans do not build credit history for borrower VERY RISKY LOANS BECAUSE OF THE TRIPLE DIGIT APR, NO ABILITY TO REPAY DETERMINATION, LUMPSUM REPAYMENT BY ACH TRANSFER
Installment Loans
• Florida Consumer Finance Loans or installment loans are at Chapter 516, Florida Statutes
• Loans are capped at 30% per annum and may not exceed $25,000; tiers:
30% on first $3000; 24% on $3000 to $4000; 18% on amounts over $4000
Installment Loans continued • Loans must repaid in equal monthly installments
(OFR has determined that a single installment meets the requirements of the law)
• Lenders may sell insurance with the loans (credit life, credit disability, etc.)
• Industry says average loan is $3000; consumers use these loans to purchase cars, mobile homes but also as unsecured loans
Installment Loans continued
• Industry reports that proprietary underwriting requirements are used and credit reporting
• There are approximately 322 licensees in Florida
HIGH TO MODERATE RISK LOANS DEPENDING ON LENDER UNDERWRITING, TERM OF LOAN, AND
SALES OF ANCILLARY PRODUCTS WITH LOAN
Rate comparisons
• Florida usury rate is 18% for loans of $500,000 or less
• The maximum rate may not apply to national banks
• Car title loans, payday loans and installment loans are “carve outs” from Florida’s usury rate
2017 Florida Legislative Session
• We anticipate that the Florida Legislature may see legislation to address the rate of payday loans
• It is also anticipated that the Florida Legislature may see legislation to create a new small dollar loan lending product
Questions and Contact Alice Vickers
Florida Alliance for Consumer Protection [email protected]
www.flacp.org www.stopthedebttrapflorida.org
FDIC’S SMALL-DOLLAR LOAN PILOT PROGRAM
Presented by: April A. Atkins Community Affairs Specialist
20
The purpose of this presentation is for informational purposes only.
The Federal Deposit Insurance Corporation’s participation with this online conference is not an endorsement of the organizations or presenters listed on the agenda.
21
April A. Atkins, AICP Community Affairs Specialist
Federal Deposit Insurance Corporation [email protected]
LENDING CIRCLES
AGENDA
• Introductions
• Catalyst Miami and Mission Asset Fund
• What are Lending Circles and How do they Work
• Lending Circles Program Process
• Lending Circles Important Information
• Lending Circles in Miami
• Questions
INTRODUCTION
WHAT ARE INFORMAL LENDING CIRCLES
mabati
kutu
It’s a global practice
People come
together
To lend and borrow
money to each other
Lending Circle Basics
LENDING CIRCLES
BENEFITS OF LENDING CIRCLES
Access a 0% interest social loan
Establish and build your credit
Increase your financial knowledge
Know your money is safe
Meet new people, and save together
READY TO APPLY
FOR DEFERRED
ACTION BUT DON’T
HAVE
$465?
READY TO APPLY
FOR CITIZENSHIP
BUT DON’T HAVE
$680?
LENDING CIRCLES PROGRAM
WANT TO IMPROVE
YOUR CREDIT?
1 2 3
APPLY ONLINE AND COMPLETE FINANCIAL EDUCATION
ENROLL IN A LENDING CIRCLE AND GET THE MONEY YOU NEED
MAKE PAYMENTS ON TIME AND ESTABLISH OR REBUILD YOUR CREDIT
ENROLLMENT
• Clients must complete the application for the Lending Circles at LendingCircles.org
APPLICATION
• 90 minute online class or in-house presentation
FINANCIAL
EDUCATION • You must have completed the
application, promissory note, and survey to join the Lending Circles program
SURVEY
• A personal email account is required EMAIL
PROGRAM REQUIREMENTS
• Clients will need to have a checking account in their name
CHECKING ACCOUNT
• Clients will need to have valid Email address
• Clients must provide a valid state ID/ Drivers license or government issued ID information (does not have to be a US doc)
• Clients must have Social Security Number or Tax ID Number
ID
• Clients must be over 18 years old AGE • Must have steady household income (wages,
self-employment, public benefits, etc.), and be able to afford the monthly contribution amount
INCOME
PAYMENTS
• Monthly payments are electronically debited from checking accounts on the 17th.
17TH
• Distributions will be credited on the 25th or the following business day.
25TH
MY CREDIT REPORT
Lending Circles in Miami
• Just under 100 clients enrolled in Lending Circles in two years
• Average credit score increase is ~160 points
• Engage with MAF via the LC Communities Portal
• 65% of Lending Circles clients receive Financial Coaching
Bring Lending Circles to your Community
• Visit lendingcircles.org/partners
Q&A
STAY IN TOUCH
DARREN LIDDELL SR. DIRECTOR OF COMMUNITY WEALTH
Email: [email protected]
Phone: (786) 527-2570
Office: 3000 Biscayne Blvd, Suite 210 Miami, Florida 33137
Independence is Priceless We make it Affordable
Who is FAAST?
Florida Alliance for Assistive Services and Technology
• FAAST, Inc. is a 501 (c)(3) not-for-profit organization as of October 20, 1994, funded by the U.S. Department of Health and Human Services (HHS) through the Assistive Technology Act of 2004 and through Florida General Revenue funds under §413.407, F.S. FAAST, Inc. is sponsored by the Florida Department of Education, Division of Vocational Rehabilitation
FAAST Mission
• Our Mission is to improve the quality of life for all Floridians with disabilities through advocacy and awareness activities that increase access to and acquisition of assistive services and technology.
How do we succeed at our mission:
• Six Regional Demonstration Centers: Pensacola, Tallahassee, Jacksonville, Orlando, Tampa, Miami
• Five Regional ReUse Centers: Pensacola, Tampa, Ft. Myers, Miami, Ft. Lauderdale
• Statewide Device Borrowing Program Consumers and Educators may borrow AT at no cost for 30 days to determine if the device or technology is the right fit
• New Horizon Loan Program
What is the New Horizon Loan Program? • The New Horizon Loan Program is a preferred-interest loan program
of the Florida Alliance for Assistive Services and Technology, Inc. (FAAST).
• The New Horizon Loan Program is enabled through the Assistive Technology Act of 2004, originally funded by the Rehabilitation Services Administration.
• The program offers Floridians with disabilities credit opportunities while purchasing equipment and items and associated services that will improve their overall quality of life.
• The New Horizon Loan Program offers Assistive Technology Loan and Small Business or Telework Loan Programs.
• The New Horizon Loan Program offers funding through a Direct Loan Program.
History of the NHLP
Timeline
• 2002 – FAAST entered into its first contract for a lending program.
• Over $1,600,000 has been borrowed by over 125 consumers
• Began operating as a Direct Lender in 04/2015
• Will expand program to once again include a bank guarantee program in 2017
What is Assistive Technology? Assistive technology is any item, piece of equipment, or product system, whether acquired commercially off the shelf, modified, or customized, that is used to increase, maintain, or improve functional capabilities of a person with a disability.
What are some examples of AT? • Hearing Aids • Low Vision Aids • Home Modifications/Environmental Controls • Communication Devices • Adapted Computers • Modified/Accessible, Vehicles • Mobility devices and equipment • Recreational Equipment
Alternative Financing Program (AFP) What can be financed?
– All types of AT can be financed under the FAAST AFP (vehicle modifications are limited to the modifications only, not the vehicle purchase at this time)
– AT services may also be financed to include trainings, fittings, leases, installations.
– FAAST has financed multiple categories of AT including: home modifications, vehicle modifications, home lift systems, hearing and vision aids, daily living, scooters and power mobility.
New Horizon Business Loan Telework Loan
• Equipment to be used at work place or from home (your telework office)
• Vehicle or mobility necessary to get to and from the work place
• VR invaluable source
Entrepreneur Loan
• Equipment to be used at home for your own business
• Vehicle or mobility to meet clients, conduct business
• Business plan required
• VR invaluable source
Examples of AT Funding
Loan Program Details
• Loan Amounts up to $25,000
• No Income Requirements
• Target minimum credit score – 600
• Target maximum DTI – 50%
• Current Interest Rate -5.50% (subject to change)
• Terms from 6 – 60 months
• Secured and Unsecured loans
Application to Decision
How does the process work?
Contact with NHLP
Application
sent to client
Client completes
application online
Application received and reviewed by
NHLP Director
Credit pulled and debt to
income calculated
Application declined based on
credit and/or
DTI.
Client contacted and
credit education plan
offered.
Application approved,
closing date and time
scheduled.
Loan Closed, Funded. Credit education plan
offered.
Direct Loan Program Results
• First Loan – May 2015
• Forty loans approved as of 12/31/2016
• Average loan funding - $4642. Smallest loan - $100; largest loan - $20,355
• Total amount approved - $211,194 Total amount funded - $176,400
• 19 Counties served
Credit Education
• Expanding credit education in 2017
• Goal is Financial Wellness for individuals with disabilities
• Partnering with CIL’s across the state
• Look for upcoming training in your area
Bank Partnership
• Seeking bank for vehicle purchase partnership
• Guarantee loan program – FAAST provides 100% guarantee for each loan
• Allows FAAST to offer vehicle purchase loans for modified vehicles without added administrative work/cost of vehicle loan closing, title, collections.
• Allows FAAST to offer higher dollar loans while maintaining sustainability of program.
Contact Information
Eric Reed FAAST New Horizon Loan Program
3333 W. Pensacola Street Building 100, Suite 140 Tallahassee, FL 32304
(850) 487-3278 x 104 Toll Free (844) 353-2278
[email protected] www.newhorizonloanprogram.org
www.faast.org
Kiva: Crowdfunded Microloans
Kiva Loans
• LISC Small Business and Kiva are partnering to advance a shared mission: expanding financial opportunities for underserved entrepreneurs and small businesses in the U.S.
• Kiva is an online loan crowdfunding platform that enables entrepreneurs to access 0% interest small business loans up to $10,000
• Individuals lend $25 or more to borrowers through the platform
• Uses social underwriting to expand access to capital these are character-based loans – Social underwriting = character, relationships, reputation credit scores, collateral, cash flow
• All borrowers must secure a minimum number of lenders from their own networks before their loan is posted publicly on the Kiva website
• Borrowers can get endorsed by trustee organizations who vouch for their character
• All borrowers must make a $25 loan to another fundraising borrower before their loan is posted – demonstrates engagement
The Kiva Loan • Borrowers can apply for up to $10,000 – may qualify for a
lower loan amount if they are already heavily indebted
• For business purposes only
– Purchasing equipment or inventory
– Expanding product lines
– Hiring additional staff
– Marketing, advertising, improving, or creating websites
– Paying for legal fees
• 0% interest, no fees
• 2-year term for $5,000 loans; 3-year term for $10,000
loans
• Repayments begin one month after loan has disbursed
• Loans disbursed and repaid through PayPal
Kiva Borrower Eligibility
• Borrowers must be over the age of 18
• They must have a PayPal account or the ability to create one
• Borrowers cannot currently be in foreclosure or under bankruptcy
• Emphasis on entrepreneurs with household incomes under $100,000
• Borrowers must lend $25 to another fundraising borrower in support of the Kiva community
• Private fundraising period – Each borrower is required to invite a minimum number of
lenders from her own personal network before her loan is posted “live” on the website to the greater Kiva lending community
– These invited lenders can lend as little as $25
Successful Kiva borrowers have…
• A network of supporters and champions (friends, family members, and customers)
• A social media presence
• Tech savviness (comfortable using email, web, PayPal, etc.)
• Comfort marketing their business!
• Momentum coming out of the private fundraising period into public fundraising (~30% or more raised in private)
• A great photo for their campaign
Local Kiva Support: Get help from a trustee organization!
• Trustees are organizations or individuals that recommend borrowers and endorse
them publicly on the Kiva website
• Endorse borrowers based on their character and the viability of their businesses
• Under no financial or legal liability, but…
• …Help support borrowers throughout the Kiva process
– Applying
– Fundraising
– Repaying
Why become a trustee?
• Help the entrepreneurs you work with access capital
• Gain exposure for your organization – each trustee has an online Kiva profile that links to its website and includes information about it
• Track your impact over time and showcase your work with Kiva to funders
Trustee Responsibilities • Spread the word about Kiva • Vouch for creditworthiness • Help ensure that a borrower is successful
– Kiva leans on its trustees in the application, fundraising, and repayment processes. Trustees track borrowers’ progress as they apply, provide advice and share Kiva loans to their networks during fundraising, and follow up with the borrower as necessary during the repayment process.
Loan Example: Heather, Top Shelf Cookies • Produces artisan cookies – “all about
bringing Boston a better cookie”
• Borrowed $5,000 through Kiva to create a new logo, get a wholesale license, and buy labels and packaging
• LISC Small Business matched 42 lenders, contributing $2,250 towards Heather’s loan
• First borrower endorsed by CommonWealth Kitchen in Dorchester, MA, a Boston LISC partner – business has operated out of CWK since September 2014
• Results…new logo!
“I have never felt so energized to move
forward with Top Shelf Cookies. When
you look at a list of 40 people that just
gave you money to continue to follow
your dream and take the next big step, I
kind of want to cancel my vacation and
just get to work. I have great plans for
2016 for Top Shelf Cookies.” – Heather,
Top Shelf Cookies
Next Steps….
• For more information Contact Devin Thompson [email protected]
• Apply for a loan at www.kiva.org/borrow
• Apply to be a trustee at https://www.kiva.org/trustees/apply
• Learn more at http://liscsmallbusiness.org/
Kiva: Crowdfunded Microloans
Kiva Loans
LISC Small Business and Kiva are partnering to advance a shared mission: expanding
financial opportunities for underserved entrepreneurs and small businesses in the U.S.
Kiva is an online loan crowdfunding platform that enables entrepreneurs to access 0%
interest small business loans up to $10,000
Individuals lend $25 or more to borrowers through the platform
Uses social underwriting to expand access to capital these are character-based loans
Social underwriting = character, relationships, reputation credit scores, collateral,
cash flow
All borrowers must secure a minimum number of lenders from their own
networks before their loan is posted publicly on the Kiva website
Borrowers can get endorsed by trustee organizations who vouch for their
character
All borrowers must make a $25 loan to another fundraising borrower before
their loan is posted – demonstrates engagement
The Kiva Loan Borrowers can apply for up to $10,000 – may qualify
for a lower loan amount if they are already heavily indebted
For business purposes only
Purchasing equipment or inventory
Expanding product lines
Hiring additional staff
Marketing, advertising, improving, or creating websites
Paying for legal fees
0% interest, no fees
2-year term for $5,000 loans; 3-year term for $10,000 loans
Repayments begin one month after loan has disbursed
Loans disbursed and repaid through PayPal
Kiva Borrower Eligibility
Borrowers must be over the age of 18
They must have a PayPal account or the ability to create one
Borrowers cannot currently be in foreclosure or under bankruptcy
Emphasis on entrepreneurs with household incomes under $100,000
Borrowers must lend $25 to another fundraising borrower in support of the Kiva community
Private fundraising period
Each borrower is required to invite a minimum number of lenders from her own personal network before her loan is posted “live” on the website to the greater Kiva lending community
These invited lenders can lend as little as $25
Successful Kiva borrowers have…
A network of supporters and champions (friends, family members, and customers)
A social media presence
Tech savviness (comfortable using email, web, PayPal, etc.)
Comfort marketing their business!
Momentum coming out of the private fundraising period into public fundraising (~30% or more raised in private)
A great photo for their campaign
Local Kiva Support: Get help from a trustee organization!
Trustees are organizations or individuals that recommend borrowers and
endorse them publicly on the Kiva website
Endorse borrowers based on their character and the viability of their
businesses
Under no financial or legal liability, but…
…Help support borrowers throughout the Kiva process
Applying
Fundraising
Repaying
Why become a trustee?
Help the entrepreneurs you work with access capital
Gain exposure for your organization – each trustee has an online Kiva profile that links to its website and includes information about it
Track your impact over time and showcase your work with Kiva to funders
Trustee Responsibilities Spread the word about Kiva
Vouch for creditworthiness
Help ensure that a borrower is successful
Kiva leans on its trustees in the application, fundraising, and repayment processes. Trustees
track borrowers’ progress as they apply, provide advice and share Kiva loans to their
networks during fundraising, and follow up with the borrower as necessary during the
repayment process.
Loan Example: Heather, Top Shelf Cookies
Produces artisan cookies – “all about bringing
Boston a better cookie”
Borrowed $5,000 through Kiva to create a new
logo, get a wholesale license, and buy labels and
packaging
LISC Small Business matched 42 lenders,
contributing $2,250 towards Heather’s loan
First borrower endorsed by CommonWealth
Kitchen in Dorchester, MA, a Boston LISC partner –
business has operated out of CWK since September
2014
Results…new logo!
“I have never felt so energized to
move forward with Top Shelf
Cookies. When you look at a list of 40
people that just gave you money to
continue to follow your dream and
take the next big step, I kind of want
to cancel my vacation and just get to
work. I have great plans for 2016 for
Top Shelf Cookies.” – Heather, Top
Shelf Cookies
Next Steps….
For more information Contact Devin Thompson [email protected]
Apply for a loan at www.kiva.org/borrow
Apply to be a trustee at https://www.kiva.org/trustees/apply
Learn more at http://liscsmallbusiness.org/
TRUECONNECT
For Life‘s Unexpected Moments
™
Sometimes we all need a little help
Employees are dealing with financial stress Did You Know?
4 of every 10 American employees are
“one bill from disaster”
™
And that financial stress is not staying at home….
1. MetLife, Inc., 10th Annual Study of Employee Benefits Trends: Seeing Opportunity in Shifting Tides 51 (2012), available at http://www.winonaagency.com/img/~www.winonaagency.com/10th annual met life study of ee benefits trends.pdf
2. PricewaterhouseCoopers, LLC, supra note 5, at 11. 3. MetLife, Inc., supra note 12, at 3.
• 22% of employees admit that they have taken unexpected time off in the past 12 months to deal with a financial issue.1
• 39% spend at least three hours each week either thinking about or dealing with financial problems at work. 2
• 81% say financial problems have affected their productivity 3
It’s not about how well you pay employees…
TRUECONNECT
For Life‘s Unexpected Moments
™
$1000 deductible
So when life happens…
Too many employees can’t pay for this…
TRUECONNECT
For Life‘s Unexpected Moments
™
$2,500 deductible
Or this…
TRUECONNECT
For Life‘s Unexpected Moments
™
Millions of employees resort to predatory loans.
Payday loans are a WORKING CLASS issue, not an unemployed or homeless issue.
TRUECONNECT
For Life‘s Unexpected Moments
™
• Regulation • Education Safe Help
TRUECONNECT
For Life‘s Unexpected Moments
™
Solving the predatory lending problem Requires a Team Effort !!!
It’s simple. 4 small loan amounts available online.
$1000 $1500 $2000
TRUECONNECT
For Life‘s Unexpected Moments
™
$3000
• Eligibility based on income and tenure • No credit score needed • Repayment over a full year • Small, amortized payroll deductions • No more than 8% of paycheck for repayment • No more than $3000, regardless of income
Delivered as a voluntary benefit hand-in-hand with Human Resources
TRUECONNECT
For Life‘s Unexpected Moments
™
While payday loans cost hundreds of dollars a month in fees…
the monthly finance charge on a $1,000*
TrueConnect loan is about the cost of a pizza
$11.83 TRUECONNECT
For Life‘s Unexpected Moments
™
If you provide an alternative to 400% payday loans to your employees - you will help them save up to
$1,350 each time
How does that feel?
TRUECONNECT
For Life‘s Unexpected Moments
™
Other programs hide extra fees
TrueConnect hides
nothing
TRUECONNECT
For Life‘s Unexpected Moments
™
There’s no waiting
employees know right away if they can
get the emergency help they need
TRUECONNECT
For Life‘s Unexpected Moments
™
Home Login Questions For Employers Since employee payment history is reported to credit bureaus, the
effect on credit score may even be positive
TRUECONNECT
For Life‘s Unexpected Moments
™
Home Login Questions For Employers TrueConnect is offered by the social mission bank named “Best for the World Overall”……….three times
TRUECONNECT
For Life‘s Unexpected Moments
™
so you can be confident you’re entrusting this task to the right team!
“Thank you for offering me a chance at help without the instant fear of being rejected”
“This came at just the right time for me”
TRUECONNECT™
For Life’s Unexpected Moments
TrueConnect Loans made by Sunrise Banks, N.A. St. Paul, MN.
Hello! I’m Andy Posner,
Founder & CEO of Capital Good Fund
A 501(c)3 nonprofit, U.S. Treasury-certified
Community Development Financial Institution
that provides small-dollar personals loans and
financial coaching
Who We Are
• Founded in Rhode Island in 2009
• 1,400 loans totaling $1.6 million financed
• 93% all-time repayment; 96% since 2013
• $730K outstanding with 99.5% on-time
• Personal loans range from $300 - $20,000
• 21 full-time staff
• Lending throughout RI, FL, and DE
Our History
Products – Small Dollar Personal Loans Credit Builder Loan: $15 / month for 12 months. Reported to bureaus. Includes 90 minute Coaching session
Loan Examples Amount Purpose Rate Term
(Months) Monthly Payment
Total Paid Total Interest
$400 Car repair 30% + $8 closing
12 $39.77 $477.24 $77.24
$1,000 Citizenship Costs
24% 24 $52.87 $1,268.88 $268.88
$15,000 Car purchase 13% 60 $341.30 $20,478 $5,478
Points of Comparison:
1. Payday loan: 278%. Rolled over average of 8 times
2. Pawn ticket: 60%
3. Rent-to-own: $500 couch = $1,000 +
4. Title-secured loan: 100% + APR
5. Buy-here-pay-here: 18% + APR
6. Overdraft: Effective APR of 1,000% (or more!)
1. Residual ability-to-pay test
2. Banking history
3. Credit history
4. Loan Purpose
5. Other
Loan Features 1. Monthly Payments reported to all three bureaus
2. No prepayment penalty
3. Unsecured (save for car loan)
4. No minimum FICO
5. ITIN or SSN
6. For car loans:
i. Max LTV 115%
ii. $500 down
Underwriting Guidelines
Florida Expansion
Florida Plans
1. Began lending statewide October 1st, 2016
2. First in-state hire begins February 1st, 2017
3. 600 + loans in 2017
4. Three in-state staff by summer 2017
Why Florida?
1. $3 billion + payday loan market
2. Large immigrant population
3. Prevalence of title-secured and buy-here-pay-here loans
4. Low regulatory barrier-to-entry
5. National Council of La Raza Affiliates
6. Critical to five-year scaling plan
Thank You! Questions?
Small steps toward a big difference
• Consumer Finance Expertise – Manatee Community Federal Credit Union 3.5 years President 1.5 Years Exec. Vice President 5 Years Board of Directors • 2 Years Vice Chairman
• Community Development Expertise – 7 1/2 years Executive Director Bradenton Central CRA – 2 years Community Liaison for Gov. Jeb Bush’s Front Porch Initiative – 5 years Board of Directors Florida Redevelopment Association – 3 years Board of Directors Florida Prosperity Partnership – 2015 Clinton Global Initiative Attendee – Founder/Chairman Suncoast Community Capital – Founder/Co-Chairman CareerEdge Workforce
Funders Collaborative
– Founder/Interim Executive Director Central Economic Development Center
• Credit Expertise – 5 years Management at Equifax
Sherod Halliburton, President of MCFCU
Our Mission Strengthen communities, build assets, and improve lives by providing
access to affordable, high-quality financial products and related services with emphasis on the needs of low-income communities.
Small steps toward a big difference
Small steps toward a big difference
Our History
• 1958 – Founded to exclusively serve employees and family members of Tropicana Products
• 2002 – Designated as a Low-Income Credit Union
• 2005 – Charter expanded to serve all of Manatee County
• 2012 – Certified as Community Development Financial Institution (CDFI)
• 2014 – Expanded Field of Membership to include participants in poverty elimination programs
• 2016 – Wells Fargo NEXT Award Finalist
• 2016 – Launched Community Network Poverty Elimination Program
Small steps toward a big difference
Small Dollar Loans
Long-Term Solution or Crutch?
Small steps toward a big difference
Pay Day Loans
Advantages Solves an immediate cash flow challenge Easy approval Friendly staff
Disadvantages
Extremely high effective interest rates Must pay in full or it renews Must provide access to your Checking Account Timely payments don’t improve your credit score
Small steps toward a big difference
Loans From Not For Profit Advantages
Easy approval Low interest rates Attractive Terms
Disadvantages
Limited monies available Many do not report to credit bureaus Does not offer other banking services
Small steps toward a big difference
Depositories Advantages
A variety of loan and deposit options Low interest rates Unlimited Resources
Disadvantages
Must Credit Qualify Late Payments negatively impact credit
Small steps toward a big difference
Manatee Community FCU Unsecured Line of Credit
Advantages Easy Qualifications Small or Large Dollars ($200-$15,000) Timely payments grow your credit Score Increased credit limit with timely payments
Disadvantages Must Credit Qualify Revolving Debt
Small steps toward a big difference
CONTACT INFORMATION
INVENTORY OF SMALL DOLLAR LOANS
Credit Unions and CDFIs:
FloridaProsperityPartnership.org/PRESENTATIONS
JAN 2017 13 12 00
SMALL DOLLAR LOAN
ONLINE CONFERENCE
