Reaching Out
May 2008 Reaching Out
A publication of Southern Good Faith Fund Asset Builders Business Development Center Welcome! Career Pathways Welcome to our spring edition of the Southern Good Faith Fund (SGFF) partici- Public Policy pant newsletter. Whether you are a participant in Asset Builders, Business Development Center, or Career Pathways this newsletter offers great information about the wealth of products and services offered at SGFF. Don’t miss the great articles below about the Arkansas attorney general ordering payday lenders to close and new rules at the FHA that will help homeowners avoid foreclosure. Make sure you read page 3 about our credit counselors and how they are helping people during these tough economic times, and on page 4 our article In This Issue: on soft skills that can help you get a job. And page 6 has a great article about recession proofing your business. AG Shuts Down Payday Lenders New Rules to Help Homeowners Arkansas Attorney General Orders Payday Lenders to Close Avoid Foreclosure Arkansas Attorney General Dustin Arkansas Supreme Court that made it Upcoming IDA Classes McDaniel on March 18, 2008, ordered clear that a 1999 state law drafted by payday lenders in Arkansas to stop the payday lending industry is not a Credit Counseling Provides Happy making loans and to forgive all out- valid defense for violating the state’s 17 Ending standing loans. This decisive action by percent interest rate cap. Southern our state’s chief law enforcement officer Good Faith Fund has played a key role Strenthen Your Soft Skills is great news for Arkansas consumers, in helping educate consumers on this College Survival Tips who typically pay 372 percent to 869 issue as a member of Arkansans Against percent in annual interest to take out a Abusive Payday Lending (AAAPL), a Meet Temisha Washington two-week payday loan. The Arkansas coalition of 40 nonprofit, faith-based, Constitution limits interest on con- and military-related organizations and Hot Career: Nursing Field sumer loans to 17 percent a year. individuals dedicated to ridding our Save Money For College The attorney general based his directive state of abusive payday lending. on two recent decisions by the Recession Proof Your Business continued on page 3 Upcoming BDC Training Affordable Health Insurance FHA Says It Will Loosen Some Lending Rules New rules may help some homeowners avoid foreclosure How Will You Spend Your Stimulus Check? The U.S. Federal Housing Testifying before the House Committee Administration says it’s taking addi- on Financial Services, chaired by Rep. tional steps to help homeowners facing Barney Frank (D-MA), Montgomery foreclosure stay in their homes. FHA said FHA will permit and encourage Director Brian Montgomery has told lenders to voluntarily write down some Congress his agency is loosening some of the principal on home loans, to of its rules to head off what some see as make it easier to refinance. a looming disaster. continued on page 2 Asset Builders IDA
Lending rules, continued from page 1 Do you need help with your credit? Call one of Southern Good Faith Fund’s Frank and other Congressional credit counselors: Democrats have backed legislation that would allow bankruptcy judges to take that action, without consent from the Frances Newsome Vida Fielder 870.535.6233, ext. 23 870.816.1126 lenders. In his appearance before Southern Good Faith Fund 502 Cherry Street Frank’s committee, Montgomery said 2304 W. 29th Avenue Helena-West Helena, Arkansas the FHA would also help homeowners with subprime loans transition to FHA loans, where possible. “FHA will now back loans for borrow- ers who are financially capable, but Upcoming IDA Classes who have a spotty credit record,” Montgomery said. “To qualify for a Pine Bluff 17 Homebuyer Class standard 97 percent LTV loan, borrow- 29 Financial Services Classes are held at 10 a.m. and 6 p.m. ers will still be eligible if they were late at Southern Good Faith Fund, 2304 W. June on two monthly mortgage payments, 29th Ave. 5 Credit Management either consecutively or at two different 12 Information Meeting *Free child care at the 6 p.m. class in times over the previous twelve 19 Renting, Leasing, Buying Pine Bluff on Jan. 22, Feb. 12, Feb. 26, 28 Homebuyer Class months.” Mar. 18, April 8, and April 22. For borrowers who can’t meet that stan- May July dard, Montgomery said FHA will per- 8 AST-Education mit up to three months of delinquency. 6 Information Meeting 17 Information Meeting But in those cases, he said, FHA will 13* Money Management 19 Homebuyer Class 20 Spending as a Habit—Saving as limit the LTV ratio for these borrowers 29 AST-Home Repair a Goal (10 a.m.) to 90 percent. 27* Financial Services August “We will permit and encourage lenders 7 Information Meeting June 12 Money Management to voluntarily write down outstanding 3 Information Meeting principal,” he said. “Lenders will also 10 Credit Management (10 a.m.) Mississippi be allowed to make other arrange- 17* Renting, Leasing, Buying Classes are held at 6 p.m. at the ments, including new subordinate liens, 24 AST-Education (10 a.m.) Workforce Center, 510 Sunbelt Dr., to fill the gap between an existing loan July Clarksdale. Information meetings balance and the new loan amount, be it 1 Information Meeting are held at 5:30 p.m. a 97 percent or a 90 percent LTV 8* AST-Home Ownership loan.” 15 AST-Home Repair (10 a.m.) May He also said the administration strongly August 22 Information Meeting 22 Spending as a Habit—Saving opposes a proposed $10 billion in loans 5 Information Meeting as a Goal and grants for the purchase and reha- 12 Money Management (10 a.m.) bilitation of vacant, foreclosed homes. 19* Spending as a Habit—Saving as June The plan was advanced as a way to pre- a Goal 26 Information Meeting 26 Financial Services vent real estate values from falling fur- 26 Financial Services (10 a.m.) ther, but Montgomery maintains the Helena-West Helena July principal beneficiaries of this type of Classes during the week are held at 24 Information Meeting plan would be private lenders, who are 5:30 p.m. Saturday classes are from 10 24 Credit Management now the owners of the vacant or fore- a.m. - 2p.m. All classes are held at First August closed properties. Bank of the Delta, 502 Cherry St. 21 Information Meeting 21 Renting, Leasing, Buying From Consumeraffairs.com, April 9, May 2008. 8 Information Meeting (AST—Asset Specific Training) 15 Spending as a Habit—Saving as a Goal
2 Southern Good Faith Fund Credit Counseling Provides Happy Ending
One of Asset Builders’ credit counselors clients requiring approximately could not get it, the mortgage compa- recently worked with clients to avoid $15,000 to avoid foreclosure. ny’s loss loss mitigation department foreclosure on their home. To complicate matters, the loan was told them they would research the file After a member of the family died who sold to another company during this and get back to them. didn’t have life insurance, our clients time. Our clients contacted the new Loss mitigation contacted our clients fell behind on their mortgage payment. mortgage company but were told they with good news. The family only need- We helped them structure a repayment had not yet received their file and told ed to pay $2000 by April 15 to rein- agreement for their fixed-rate mortgage to call back in two weeks. We advised state the loan and their next payment and they made their loan payment our clients to hold onto the money was reduced by $500 and not due until online. However, because their pay- they had. June 1. We are continuing to work ment took four days to process and When our clients finally talked to the with the client on credit counseling and post, their account became delinquent new mortgage company, they were told setting up a budget. and was turned over to an attorney for they would need to pay $3000 by April If you’re having financial troubles, give foreclosure. The attorney contacted our 5 to reinstate the loan. Because our us a call and let our credit counselors savingsclients didn’t have enough money and help.
Public Policy Payday lenders, continued from page 1
Michael Rowett, research and commu- in a quicksand of debt, nications manager for SGFF’s Public these businesses and Policy program, currently serves as their triple-digit inter- chairman of AAAPL and was among est rates will, in the the AAAPL coalition members who near future, be con- stood behind the attorney general at his signed to the dustbin March 18 news conference in Little of history. SGFF’s mis- Rock announcing his directive ordering sion is to increase low- payday lenders to close. income families’ Many payday lenders have already incomes and assets, and complied with the attorney general’s the debt trap of payday lending certainly repre- directive, while some likely will resist, Arkansas Attorney General Dustin McDaniel held a news obliging the attorney general to file sents a tremendous bar- conference on March 18, 2008, in which he announced lawsuits to shut them down. Still others rier to asset- and he was ordering payday lenders in Arkansas to stop mak- have signaled that they will attempt to income-building. ing loans and to forgive all outstanding loans. disguise their payday loans as products Southern Good Faith Participating in the news conference were, left to right, designed to evade the crackdown. Fund is proud to have State Representative David Johnson, who sponsored legis- lation during the 2007 session to crack down on payday Attorney General McDaniel has noted played a role in lenders; Matthew Hass of the Arkansas Trial Lawyers that because of this expected resistance, AAAPL’s ongoing cam- paign against abusive Association, Chairman of Arkansans Against Abusive shutting down every payday lender in Payday Lending (AAAPL)’s Policy Committee; Michael Arkansas likely will be a long-term payday lending. Rowett, Research and Communications Manager for process and he’s not yet ready to declare More information on Southern Good Faith Fund’s Public Policy program and victory. Arkansans Against Chairman of AAAPL; McDaniel; Sam Sellers of AARP- Arkansas, Vice Chairman of AAAPL; Assistant Attorney Consumers throughout Arkansas can Abusive Payday Lending is available on General Charles Saunders; and Deputy Attorney General be thankful and optimistic, however, Jim DePriest. that after years of drowning borrowers the Web at www.StopPaydayPredators.org
Southern Good Faith Fund 3 Career Pathways
What are Soft Skills? By Kate Lorenz, CareerBuilder.com
Each company looks for a different mix • Time Management Abilities: Do you Will you embrace change and be open of skills and experience depending on know how to prioritize tasks and work to new ideas? the business they’re in. Yet it’s no longer on a number of different projects at • Working Well Under Pressure: Can you enough to be a functional expert. To once? Will you use your time on the handle the stress that accompanies complement these unique core compe- job wisely? deadlines and crises? Will you be able tencies, there are certain “soft skills” • Problem-Solving Skills: Are you to do your best work and come every company looks for in a potential resourceful and able to creatively solve through in a pinch? hire. problems that will inevitably arise? Will When job-hunting, Kocon advises that “Soft-skills” refer to a cluster of person- you take ownership of problems or you focus on the skills most likely to al qualities, habits, attitudes, and social leave them for someone else? interest the prospective employer and graces that make someone a good • Acting as a Team Player: Will you work learn to demonstrate these skills employee and a compatible co-worker. well in groups and teams? Will you be through your résumé, in an interview Companies value soft skills because cooperative and take a leadership role or in dealing with potential employers research suggests and experience shows when appropriate? at career fairs or industry association that they can be just as important an gatherings. • Self-Confidence: Do you truly believe indicator of job performance as hard you can do the job? Will you project a For example, tell a story of how you skills. sense of calm and inspire confidence in successfully handled a crisis or chal- “Today’s service economy and the others? Will you have the courage to lenge at your company. Mention hon- ascendance of work teams in large ask questions that need to be asked and ors you received or even bring along organizations puts a new premium on to freely contribute your ideas? letters of thanks or commendation people skills and relationship-building,” from an employer or customer. • Ability to Accept and Learn From Criticism: Portland-based human resources expert Remember, whether you are applying Lori Kocon says. “And with business Will you be able to handle criticism? Are you coachable and open to learning for a service position or a technical job, being done at an increasingly fast pace, it's your combination of core and soft employers also want people who are and growing as a person and as a pro- fessional? skills that will set you apart from the agile, adaptable, and creative at solving crowd! problems.” • Flexibility/Adaptability: Are you able to Kocon advises all job candidates—espe- adapt to new situations and challenges? cially those who aspire to managerial positions—to get in touch with their College Survival Tips soft side. Some of the most common soft skills employers are looking for and College life can be tough, stressful, and because drugs, alcohol, smoking, will be assessing you on include: overwhelming at times. It is very unhealthy foods, and a lack of sleep • Strong Work Ethic: Are you motivated important that college students lead a can all have a negative effect on your and dedicated to getting the job done, balanced life. Here are a few tips to health. no matter what? Will you be conscien- help keep you balanced: • While selling books back at the end tious and do your best work? • Exercising regularly can help to of the semester may be a good way to • Positive Attitude: Are you optimistic relieve the daily stress of tests, exams, make some extra money, don’t sell and upbeat? Will you generate good grades, relationships, etc. back the books that provide informa- energy and good will? • Getting an adequate amount of sleep tion that is relevant to your major or future career. You can probably use • Good Communication Skills: Are you in college is very important. these books for reference and guid- both verbally articulate and a good lis- Studying and retaining information ance. Besides, the bookstore probably tener? Can you make your case and can become more difficult with little won’t give you back nearly as much as express your needs in a way that builds or no sleep. Pulling "all nighters" is a you paid for it, so it may be more bridges with colleagues, customers, and common practice among many col- worthwhile to keep it. vendors? lege students, but in fact this is not the most efficient way to study in col- Balance is all important; self-care and lege. wise personal and academic choices all • Watch what you put into your body play into your opportunities at success.
4 Southern Good Faith Fund Meet Temisha Washington Saving Money For College
Temisha heard about the SGFF pro- It is less expensive to save for college gram through a former trainee and than to borrow. When you save, your decided to take the Certified Nursing money earns interest, while when you Assistants (CNA) class to see if nursing borrow, you’re paying interest. Even if was the career field she wanted to pur- college is just a year or two away, it is sue. never too late to start saving. Open a The training she received motivated her 529 college savings plan for each of to further her education in the nursing your children. This is one of the best field. Her outlook on the future was college savings vehicles because of the enlightened by the fact that she could tax advantages, the low impact on work and actually enjoy her job. need-based financial aid, the flexibility, the high contribution limits, and This opportunity has positively impact- because control over the account ed her life. Her income has increased remains with the parent. from $0 to $2500 a month and because through the Career Pathways program, she has chosen the field of allied health, Through the Aspiring Scholars donated money to help with the cost Matching Grant Program, SGFF is she has many options as to where she of the funeral.” can work. For example, she currently offering you the opportunity to open a Temisha’s plans are to go to college works at an OB/GYN office and in the 529 college savings plan and receive and earn her associate degree in nurs- nursery at the local hospital. matching grants up to $2500 over five ing. “I have told everyone about SGFF years. Although the application dead- “The hardest struggle I faced during and how great they are. My advice to line to receive matching grants for the CNA program was the loss of my people is not to settle for mediocre 2008 has passed, a new application infant child, Austin. If it had not been jobs. Take advantage of the opportuni- period will begin in 2009. Don’t wait for the program I would not have had ties that SGFF offers; obtain your edu- until then to start saving for your what I needed to get up in the morn- cation that will help you and your child’s education. By opening a 529 ings. It gave me something to keep my family have a better life” says Temisha. college savings plan today, you will not mind busy and people to talk to that “Ultimately, if you love going to work only begin to earn interest on your were my friends, and with that support everyday it’s not like really working at money, but you will also have a leg up group I was able to cope,” says all.” on the Aspiring Scholars application Temisha. “In addition to that, SGFF process. Also, SGFF will be offering a $100 incentive to help get your Hot Career: Nursing Field account started. Funding is limited, so this incentive will be offered on a first Nursing is a career field with exploding demand. And becoming a certified come, first serve basis. nursing assistant is the first step down the pathway. Another way to save for your child’s Southern Good Faith Fund offers an eight-week Certified Nursing Assistant education is the IDA program through (CNA) course approved by the Arkansas Office of Long Term Care and Asset Builders. You will save $667 and licensed by the State Board of Private and Career Education. CNAs work in receive a match of $2,000 that can be every area of healthcare like hospitals, nursing homes, assisted living facilities, used for tuition, books, and fees. For and doctors’ offices. more information about the Aspiring Check out our new 2008 class schedule let us help you discover a rewarding Scholars Matching Grant Program, call career in the nursing field. Begin down this exciting nursing career path at no Blake Williams at 870.535.6233 ext cost if you meet certain guidelines. Call now and get details on registration. 17. If you are interested in the IDA program in the Pine Bluff, Arkansas Contact: area call Enrique Castro at Start Date End Date Melissa Young, Nurse Instructor 870.535.6233 ext 16, or Mindy July 7 August 27 870.535.6233 ext. 24 or Maupin at 870.816.1104 in the Sept 3 October 29 Lisa Ponder, Student Support Helena-West Helena, Arkansas area. November 3 December 22 870.543.5999 (Information taken from http://www.finaid.org/savings/)
Southern Good Faith Fund 5 Business Development Center
Recession Proof Your Business In this issue, the Business Development changing needs. How has the recession Center (BDC) staff continues to focus affected them, and how can you tailor on how small business owners can sur- your products and services to their vive and even grow in these challenging needs? My child care provider is an economic times. In an article titled excellent example of an entrepreneur “Retailing Chains Caught in a Wave of who anticipates the needs of her cus- Bankruptcies,” the New York Times tomers, which ensures that she retains details how the slump in consumer them as long as possible! Recently, she spending and tightening credit markets helped me research some good elemen- are triggering bankruptcies in the retail tary schools for my son. She even industry unlike any that have been seen knows that he will be able to catch the in recent times. bus back to her center for after-school According to the article, beddings and care! My son is only two years old so she is way ahead in helping us plan for Miriam Karanja is Director of the furniture giant Linens n’ Things may Business Development Center. declare bankruptcy. Additionally, stores the future! It was great to get that type like Foot Locker, Ann Taylor, and Zales of assistance. for certain materials and inventory will close many of their stores in an 3. Market your business: Times of eco- items. Pay close attention to your sup- attempt to preserve cash. And retailers nomic downturn are also times of com- ply chain and see whether you can J. C. Penney, Lowe’s, and Office Depot petition, as new businesses enter the negotiate a lower cost for your invento- are scaling back expansion plans. market and offer lower prices than ry. It’s possible that you could improve There is no predicting exactly how yours. Businesses with lower start-up your margins and increase your bottom these changes will affect shopping malls costs are often the target of more eager line. Are there any unnecessary costs and business districts, but the BDC entrepreneurs. Keep your business visi- that you could eliminate? Review your thinks this could present an opportuni- ble to existing and potential customers projections as often as possible and see ty for business owners to meet the by updating your marketing materials. how your actual financials play out needs of customers, if they stay abreast Visit the BDC to brain storm some from week to week. of the changes and follow a few simple new marketing strategies 6. Savings: With tax season over, and a guidelines: 4. Manage your personal credit: It’s no stimulus refund just round the corner, 1. Stay informed: It’s so easy to bury your secret that the difficult economic times you may have cash coming to you. If head in the sand and not read about have made it harder for small business- possible, put aside some money in the poor economic times; after all, es to borrow so guard your personal anticipation of the future. Consider nobody wants to listen to tale after tale credit zealously as poor credit will make reducing outstanding debt, or catching of negative news. However, smart busi- it even harder for you to borrow money up on important liabilities that you ness owners need to stay abreast of for your business. Southern Good Faith may owe, such as sales or payroll taxes. what’s happening in their state or town. Fund has two credit counselors avail- Whatever your situation, now is the Sign up to receive e-mail updates from able for clients of the Business time to develop and implement a plan local papers like Arkansas Business Development Center. Frances for your business. The Business (Arkansasbusiness.com) or the New Newsome (870.535.6233 ext. 23) Development Center offers many pro- York Times (www.nytimes.com), in serves Pine Bluff, Arkansas and the sur- grams and resources geared to helping order to stay abreast of economic trends rounding cities, while Vida Fielder you start and grow your businesses. in your industry. Visit SGFF’s Web site (870.816.1126) serves Helena-West Existing businesses can work with a at www.southerngff.org and sign up for Helena, Arkansas and surrounding consultant for $10 an hour. Visit us our program newsletters. areas. online at 5. Manage cash flow: 2. Talk to your customers: Spend time lis- An economic down- http://www.southerngff.org/bdc.php or tening to your customers and their turn often leads to a reduced demand call our offices to discuss your needs.
BDC is partially funded by the U.S. Small Business Administration’s Office of Women’s Business Ownership (OWBO) under Cooperative Agreement Number (SBAHQ-04-W-0032).The Office of Women’s Business Ownership is established to help women become full partners in economic development through small business ownership.The Women’s Business Ownership homepage is: www.wbconline.gov. BDC is a public-private partnership of the U.S. Small Business Administration and Southern Good Faith Fund, a non-profit affiliate of Southern Bancorp. SBA’s cooperation does not constitute or imply its endorsement of any opinions, products, and/or services. Reasonable accommodations for persons with disabilities will be made if requested at least two weeks in advance. Contact Miriam Karanja, 2304 W. 29th Ave., Pine Bluff, AR 71603 or call 870.535.6233. All SBA programs smaprovided on a nondiscriminatory basis. 6 Southern Good Faith Fund Take Advantage of Affordable Health Insurance For Small Businesses Over 3000 employees of small busi- nesses are now receiving health insur- ance coverage through a new program To learn more about ARHealthNetworks for small businesses, for small businesses that is funded by a partnership between the federal and call 1.800.540.7566 or 1.800.285.1131 TTY or state government, and private business- es. Below is some information on the visit www.arhealthnetworks.com program: What Companies Are Eligible? • Based in Arkansas. • Have two or more full-time employ- ees. Upcoming Training At The Business Development Center • Have not provided group health ben- Get the complete schedule on our Web site at www.southerngff.org efits in the last 12 months. • Agree to insure at least one person who meets the criteria for subsidies. Understanding Your Credit • Agree to insure 100% of all un- June 10 in Pine Bluff insured employees who qualify for the Computer Training subsidy and 50% of those who do July 7 - July 28 in Pine Bluff not. Note: Non-citizens and/or non-resi- Child Care Licensing Requirements Ask About Our dents are not required to buy the cover- Workshop Specialfor Discounts IDA age, but can purchase coverage at the July 17, September 18, November 20 in Pine Bluff full price if desired. Wednesdays in Forrest City (Dates TBD) Participants! Annual Benefits NEW! Smart Technology for a Smarter Business™ • Seven inpatient hospital days per year. July 28 - August 21 in West Memphis • Two major outpatient services per year. Networking Breakfast • Six physician office visits per year. August 5 and November 6 in Pine Bluff • Two prescriptions per month (see pharmacy benefits). How to Start a Successful Small Business • Maximum annual benefit of September 16 - October 21 in Helena-West Helena $100,000. • Renewable each 12 months. How to Market Your Business on eBay Pharmacy Benefits October 21 in Pine Bluff • Two prescriptions per month. How to Obtain a Small Business Loan • Subject to three-tier co-pay (but not November 13 in Pine Bluff deductible) as follows: - $5 beneric To learn more about these classes and others, give us a call at - $10 brand formulary 870.535.6233 or visit our Web site at www.southerngff.org. - $30 brand non formulary • Program administered by Express Scripts. • Wide choice of pharmacies (no mail order). • Additional benefits following exhaus- alltion of base benefits. business Southern Good Faith Fund 7 Will You Spend or Save Your Offices Stimulus Check? Pine Bluff Little Rock Asset Builders Public Policy Policymakers are hoping you’ll go out Business Development Center 1400 W. Markham, Suite 400 and spend your rebate check to boost Career Pathways Little Rock, AR 72201 the ailing economy. 501.661.0322 2304 W. 29th Avenue The checks will start hitting the mail- Pine Bluff, AR 71603 Web Site boxes in May and the average individ- 870.535.6233 ual will get a $600 check, $1200 for For more information families, and an additional $300 per Helena-West Helena please visit us at: http://www.southerngff.org child. Consider using the money to Asset Builders improve your position over the long- 502 Cherry Street term. Helena-West Helena, AR 72342 • Pay Down Debt. Getting rid of unnec- 870.816.1104 essary debt lowers your day-to-day Business Development Center bills. 502 Cherry Street • Emergency Fund. Having cash on hand Helena-West Helena, AR 72342 870.816.1120 is always good in bad economic times. Career Pathways P.O. Box 514 • Cover the Essentials. Take care of what’s 1000 Campus Dr.,T & I Building important first—housing, utilities, Helena-West Helena, AR 72342 food and transportation are the most 870.338.3279 important things to maintain to get through bad times.
Non-Profit Org. U.S. Postage PAID Pine Bluff, AR 2304 W. 29th Avenue Permit #29 Pine Bluff, AR 71603