MSSB Town Hall


Coordinator: Good afternoon,
and thank you all for holding. Your lines have been placed
on a listen-only mode until the question and answer
portion of this conference. I would like to remind
all parties, the call is now being recorded, if you have any objections,
please disconnect at this time. I would now like to turn
the call over to Lessie Evans. Thank you, you may begin. Lessie Evans:
Hello, good afternoon, and good morning. I am Lessie Powell Evans,
Community Affairs Section Chief here at the Federal Deposit
Insurance Corporation, FDIC. I’m based here
in Washington, D.C. and I manage the FDIC’s Community Affairs Program throughout the country. Welcome to our quarterly Money Smart for Small Business Town Hall Meeting. We are pleased to learn that
a majority of attendees today are actually not
Money Smart Alliance members or using Money Smart
for Small Business. We hope that today’s program
will help you to move forward with your plans to implement
your Money Smart Program and to join the alliance. So first,
for first-time attendees, and again, a special welcome
to you, please be aware that Money Smart
for Small Business Town Halls are intended for
intermediary organizations such as financial institutions
and non-profits working with entrepreneurs
and small businesses; and the Money Smart Alliance
is a community of practice for organizations using
or considering to use the Money Smart curriculum. So this convening was created
to facilitate conversations among organizations
using and considering to use Money Smart for Small Business. So, please be sure
to ask your questions during the question
and answer segment and please let us know how
we can help support your plan to use Money Smart
for Small Business. So, going forward, I’m going to use the acronym MSSB to refer to Money Smart
for Small Business because it’s a mouthful. Okay, so today we are
featuring an MSSB program led by the Office of Planning
and Economic Development in the City of Central Falls, Rhode Island, and the Rhode Island Small Business Development Center or SBDC. In this presentation, you will
hear about the collaboration and coordination effort used to
run a successful program. You will hear from
some of the key partners that support this promising Rhode Island Money Smart
for Small Business Program. So, following my remarks,
as usual, we will hear
from our partner agency: the U.S. Small Business
Administration, SBA. SBA is with us because
we jointly, FDIC and SBA, developed the Money Smart
for Small Business curriculum. So, today we have Rachel Karton, she’s Program Manager at the SBA Office of Small Business Development Centers. She joins us to provide a brief
overview of the SBDC program as well as the introduction
to the SBDC organization that we’re featuring here today. There are many types of
organizations we want to reach with our Money Smart
for Small Business programs but SBDC’s are very important because of their support to entrepreneurs
and small businesses seeking technical assistance
and financing to start or expand
their businesses. We know that there are many
SBDC representatives today joining us on this webinar and we encourage you
to visit us at our exhibit and attend our workshop
during the 2017 America’s SBDC annual conference
in Nashville, Tennessee. So, without further ado,
hello, Rachel, please tell us about yourself and the SBDC network. Rachel Karton: Hi, everyone,
thank you for the introduction. I’m very excited
to be here today to highlight
the Money Smart Program and the small Business
Development Centers. In today’s world economy, financial capability
is vital to entrepreneurs and small business owners
trying to plan, launch, manage, grow and succeed
in the marketplace. Whether your target market
is global or your local neighborhood, the SBA’s network of Small
Business Development Centers can help at every stage by turning your entrepreneurial dream into a booming business. SBDC’s offer
small business assistance to nascent entrepreneurs
and small businesses by providing a wide variety
of information and guidance in central and easily accessible branch locations. The program is a cooperative
effort of the private sector, the educational community, and federal, state,
and local governments. It enhances economic development
by providing small businesses with management
and technical assistance. There are 63 lead centers,
one in every state; Texas has four,
and California has six. The District of Columbia,
Guam, Puerto Rico, American Samoa,
and the Virgin Islands… With a network of more than
900 service centers. In each state,
we have a lead center which sponsors the SBDC program
and manages it. The lead organization that
coordinates program services offered to small businesses
through a network of sub-centers and satellite locations
in every state. Sub-centers are located at
colleges, universities, community colleges,
vocational schools, chambers of commerce, and economic development
corporations. SBDC’s can help with
business planning, financial strategies
that include lending programs, mastering overseas markets through exporting, public sector procurement
tactics and specialty materials for veterans and women-owned
business owners. In closing, SBA has
many local resources that can help you
facilitate your local Money Smart for Small Business
workshops. You can visit our website
as you can see here and just type in your zip code and it will find (excuse me), your closest SBDC,
Women Business Center or SCORE Chapter
will show up. Please let me know how I can
help you in the future. Thank you. Lessie Evans:
Thank you, Rachel. So, at this point, I’ll turn
the program over to Paola Diaz. Paola is the Senior Community
Affairs Specialist based here in Washington, D.C. that’s responsible for our Money Smart for
Small Business program. She’ll help us through
the webinar features, she’ll review the agenda and
introduce our speakers today. Paola? Paola Diaz:
Thank you, Lessie, I am Paola Diaz, the Senior
Community Affairs Specialist focusing on economic
inclusion opportunities related to small business
at the FDIC. I support our community affairs
specialists nationwide to assist organizations that are
using or considering to use Money Smart for Small Business by referring them to examples of work
by other organizations that are similar to them, conducting presentations
to their stakeholders about the value of MSSB, and coordinating
Train-The-Trainer opportunities for MSSB instructors. Again, welcome, and thanks
for investing this time to learn about how
some organizations are using Money Smart
for Small Business. In your screen,
or Slide Number 6, you have a visual
of your webinar platform. On the left-hand side,
you should view the slides, and on the right-hand side, you should view
various functions. I encourage you to connect
with the other participants by using the chat feature marked with a Number 3
in the image and ask questions
to the panelists as they come to mind
or during the designated times with the Q&A feature which is
marked as Number 4 in the image. When using the chat
or Q&A functions, please use the Window Number 7 to type your question and make sure you hit send, Number 8. If at some point
you lose the slides, look for a green and blue circle icon, Number 1, in the image. Look for it in your taskbar which is at the bottom
of your screen, or click in the middle
of your screen to recover the platform bar,
which is Number 2 in this image. At the end of the webinar,
we will conduct a quick poll to give us a sense of what you
learned during today’s event. The polling questions will
pop up on the right-hand side of your screen as Number 9. Now that you know how to use
a chat function, please test it
for the next two minutes while I finish my remarks. If you have
technical difficulties with the web access,
please email Joan Gustafson, [email protected] or call 1-866-900-1011
for troubleshooting assistance or simply use the PDF
with the slides that were sent to you
earlier today which are also available
at the event web site in the webinar info tab. We will be making references
to the slide numbers from time to time. The agenda for today
includes very brief reminders that will help you learn more
about MSSB after this webinar, and four speakers that work together and independently on using Money Smart
for Small Business and assisting entrepreneurs to access capital
for their business. Please be aware that this and other MSSB Town Hall
webinars since 2016 are recorded
for future reference, and they can be found
in our website. Most of today’s audience
are not Alliance members. Please join after this webinar even if Money Smart or MSSB
are a small part of what you do, it is important to join because being in our
Money Smart Alliance list gives you exposure
to our website visitors which includes
entrepreneurs and bankers. The Money Smart
for Small Business Train-The-Trainer curriculum allows you to host a training for instructors anytime. But if you want
a local FDIC staff to help, please coordinate with them
directly. Our Credit and Banking
module update is underway. Please continue to provide
your feedback directly to me. My contact information and how to find the local
FDIC community affairs staff in your area
is in the last slide. MSSB modules and flyers
in English and in Spanish can be downloaded for free
at the FDIC catalogue website which is shown on this slide. All other information
about MSSB is in the FDIC
Money Smart web page under the Money Smart
for Small Business Section. We will address
questions received during the registration process of the two-designated question and answer segments, but participants
can contact panelists at any time
during this webinar. Please be aware that all
participants lines are muted. Now, the most important part
of the agenda, our speakers. Each of them
will introduce themselves and their organizations,
followed by a description of how they work together,
and independently, with the Money Smart curriculum, and in assisting entrepreneurs to access capital
for their business. First, we have Mark Allio.
Mark? Mark Allio:
Thank you, Paola, and thank you all
for attending today’s webinar. I’m very grateful to be able to
share our story with you all. Before we get started,
I just want to tell you a little bit about
my background here. I am currently
the assistant director for the Planning and Economic Development Department for the City of Central Falls. And I’ve been here
a little less than a year. I came here from a short stint with Rhode Island’s
only community college, and prior to that, I ran
the Massachusetts Small Business Development Center Networks’
Boston Regional Office Minority Business Center
for about 11 years. And during that time, working
with my small team of two, we were able to serve about 10,000 small business owners and entrepreneurs. Half of those
we provided council to and have attended
our various workshops which were developed by myself. We sponsored
about $27 million in capital, we’re very proud of the impact we were able to have in the greater Boston market and I worked with
a number of partners including some of the folks
that are going to speak today. Prior to the SBDC,
I cofounded two companies; one was a manufacturing company, and the other was
an e-ticketing service provider, and prior to that, I had
worked for some non-profits. I’m a proud MBA
from Babson College and got my undergrad in Canada. So, this is a snapshot of
Broad Street in Central Falls and I thought it was apropos. You can see on the left-hand
side of the photograph, a spire which is City Hall, and there is where I sit
as we speak. But in the foreground,
you could see a picture that kind of signifies the situation here in Central Falls. We see the only bank with
a physical presence in town, Bank of America,
and just before it, we have one of our several
check cashing establishments. Further down Broad Street, we
have the Navigant Credit Union which is one of our key partners in delivering the curriculum here in Central Falls, and I’ll speak about them
a little bit later. So, as we get started, I just want to thank and
acknowledge the core partners that I’ve worked with, with the Money Smart
curriculum here. First of all,
I want to thank Paola for all of her diligent work,
and a mentor of mine, Paul Horowitz,
who runs the regional office, the New England Regional Office
for FDIC. I partner with Manuel Batlle
who will be speaking here today with the SBDC
here in Rhode Island. Our host is
the Navigant Credit Union, and unfortunately,
they can’t be with us today but they have been
absolutely instrumental in hosting this program,
and supporting the program, and serving as a key resource for the citizens
of Central Falls. I have worked closely
with ACCION U.S.A. which is the nation’s
largest micro-lender and we have Leandro Freire representing us today. And then,
last but not least, Claudia Cardozo
from Coastway Community Bank who is one of the few members
of the Money Smart Alliance here in Rhode Island,
and actually delivers a version of the Money Smart curriculum
locally. We have a number of
supporting organizations which you can see below. You know,
multiple municipalities, the Rhode Island District Office of the SBA, Center for Women and Enterprise, an SBA resource partner. I also want to mention
that we have in our general area all of the major banks are here, and we have, through our Rhode Island
Commerce Department, have many alternative
lenders and partners. So, thanks to Paola, she was able to provide us
with this interesting graphic about the different banks – the amount of bank representation here in Rhode Island, and you can see as well
the coverage, as well as in the shaded areas, the proportion of low and
moderate-income communities. And Central Falls falls
right smack in the middle of that LMI nexus, and that’s something
that we’re trying to change here in the city. So, we are the smallest city
in the smallest state. We’re only 1.2 square miles, 20,000 residents,
400 businesses. At one point, Central Falls
was the most densely populated city in the country, and now,
we’re still in the top 15. We are a majority-minority city, we’re two-thirds Latino,
we’re half immigrants, and there’s a fair amount
of folks here that speak little or no English. It’s primarily
a Spanish speaking town but not exclusively. We also are well represented by a lot of Portuguese residents as well. We have the dubious distinction of having among the highest
rates of unemployment and the lowest rates
of per capita income in home ownership,
so we are a classic, what is called in the field I believe
an “unbanked community” where we do have one bank
with a physical location, one credit union,
three payday loan providers, and 12 multi-service agencies, which in the Latino community,
is fairly common. The city was the third
municipality in the country to file for bankruptcy, and thankfully, after six years, we have just emerged this July. So, we are lovingly referred to
as the comeback city. Just a brief profile of our
business sector, as you can see, about half of our 400 businesses
are in retail and hospitality, and most of these are
small mom and pop shops. We also have a fair amount
of personal service, business owners,
a small manufacturing corridor, but this is really a situation where we have a large amount of
lifestyle businesses. We have two
commercial corridors, one being Dexter,
the other being Broadstreet. The challenge here
is really trying to attract outside capital and revenues
for our businesses outside of Central Falls, and trying to increase
the diversity of businesses here and make capital available
for expansion. We’ve got some major things
happening on the horizon including a major train station,
a regeneration initiative that will transform
Broadstreet opportunities to launch cultural branding programs and the like. So, we’re trying to increase
prosperity in a number of ways. So, I have, over the years, been both a student
and a teacher of a variety of different types of
entrepreneurial training programs and financial oriented
programs and the thing – here’s a few things
that I like about Money Smart. First of all,
I feel very strongly that there is a strong link between personal, financial literacy,
and business literacy, and I believe
that the Money Smart curriculum really bridges that gap
in a way that is easily accessible by
people of varying backgrounds. It’s obviously free, there are resources
to support the delivery. The modules,
13 modules can be delivered, not only as a series,
but standalone, and I find that’s important
because not a lot of folks are able to make the commitment to attend regularly a multi-unit
instructional program. The fact that the curriculum
is available in Spanish is key, at least in this market. In this market, as well, you have a lot of
community service organizations and so the Train-The-Trainer
option is key especially if you want to
expand capacity, if you will, towards the effort. I like the fact that the program
is easily customizable, not only the tools
but the curriculum itself. I like the fact that you have
an instructor guide, a participant guide, flyers,
everything you’d need. It’s a complete toolkit and it has all of the elements
of good instructional design. It has real life examples,
the curriculum is interactive, there is assessment, both
prior to training and after, there are evaluations and there’s additional exercises. So, it’s really got
all of the elements there. And I also like the fact that it’s easy to incorporate
guest speakers and build that into
other types of programming. So, we have just launched,
we’re early stage with this, although I’ve been talking
with FDIC for several years, this is the first time
that I’m actually doing it through a vehicle. The City of Central Falls is a member of
the Money Smart Alliance, and we hope that everybody
will consider joining because it’s certainly
a worthy cause. The curriculum has 13 modules,
but as you can see on this slide I’ve taken the liberty of
changing up the suggested order to an order that I think
works well for this market, and I’ve taken – on the slide, you’ll see
an additional designation for what I consider
feasibility training, as well as financial
and management training. So just something
for future references; once again, that’s part of
the beauty of the curriculum is that you can customize it
to meet your audience’s needs. This is some content that we use
to get the word out about the Money Smart curriculum. We have completed
three modules so far. We’ve had 60 people register,
about half had actually attended and we’re starting to get
some serial attendees, but basically, we decided
to offer it monthly. It’s hosted at
Navigant Credit Union. We welcome participants
from outside of Central Falls and we’re delivering it
for free. And we have a variety
of different ways to get the word out but…
I’ll get to that in a second. Here’s an example of
the flyer that we created using the template that is right on the FDIC Money Smart website, and basically putting in content specifically about
what module is being offered; able to produce this flyer
in both Spanish and English and printed out one-sided,
send it as a PDF, post it throughout town. It works very easily,
and you can’t actually see it but I’ve also introduced,
you know, added onto the flyer
the link for Eventbrite which we use
for course registration. So, a few things
to wrap it up here. My philosophy is
that math and money management are not only
essential life skills but they’re critical
to entrepreneurial success. And that, in a market
where income is short and dreams are far ranging, it’s really important
to be able to reinforce the fact that launching a business
or growing a business has to be based in reality. So the Money Smart
curriculum does that in a particularly
effective way, I think. Self-employment has got to be
considered carefully because it does require
resources and you may have
other obligations, including family obligations, and that has to be integrated
into your plans. The Money Smart curriculum
does an excellent job, I think, of giving the trainer
the opportunity to explain the role of government
in the whole process, not only in terms of
launching a business, but also obtaining
startup capital. And this is really important
to be able to calibrate expectations for business
owners, for entrepreneurs, so that we can maximize success in terms of obtaining capital. The trainings, some trainings focus specifically on entrepreneurship,
others on financial literacy. This training does both,
and of course the C’s of credit are a crucial link
in that training and I think that ACCION,
for example, focuses in a very special way
on that and you’ll hear a little bit
more about that a little later. The curriculum gives us the
opportunity to reinforce things like forms of
organization and liability and personal obligations, and that must be
reinforced frequently, at least in my experience. The – based on my experience, the financial management
software is now part of the landscape for success, and it used to be
that debits and credits – and one had to have
a grasp of financial accounting in order to succeed, but now we’re able to leverage technology and programs like Quicken and QuickBooks,
so that’s really important, and it’s really important
to be able to know how to put together a forecast and obtain
those spreadsheet skills. And so, I do plan to augment
the Money Smart curriculum with some special sessions
on those. So, wrapping it up,
I would just say that it’s really important
as you go forth to partner with organizations
that have a similar mission and who are serving
the same audiences, and by working together, you will be able to
amplify your impact, and the Money Smart curriculum serves as a great platform for you to be able to do that and to reach your constituents. So, with that, I will pass it on to the next speaker, my friend and colleague,
Manuel Batlle. Manuel? Paola Diaz: Thanks.
Manuel, go on. Manuel, I can move the slides for you if you want, are you in the call? Coordinator:
Is he sitting with anyone? Manuel, if you are on the line,
you can press *0. Paola Diaz: Okay. Mark Allio: You know,
this is Mark Allio again, I’m happy to – being a SBDC guy,
I’m happy to… Paola Diaz: Take over, please,
by all means. Mark Allio: So, Manuel,
if you’re there, jump in at any time. But, I’ll run through
these slides until Manuel gets on the line. So, I’ve actually known Manuel
for a number of years, we met while I was with
the Massachusetts SBDC, and Manuel is the director
of the Providence office of the Rhode Island SBDC,
and by the way, I’m a Rhode Island resident, but I did work in Massachusetts
and in Boston. Oh, are you there? Manuel Batlle:
Yes, I am here. Mark Allio: Okay, great. Manuel, here we go,
you’ve got the real thing. So, take it away, Manuel. Manuel Batlle:
Okay, thank you, Mark. First, I’m honored to share this
with Mark and Claudia and Leandro, we have been
working together for the last three years
since I came to Providence. I hold an MBA, and I’m also a certified
global business professional. I was born
in the Dominican Republic so I’m bilingual
in Spanish and English. Before joining the SBDC,
I had started three companies, and I also have C-level
managerial experience with Fortune 500 companies. So, this is our – so a number of you,
how we do things, I’m going to talk
how we do things. How we do it,
and why we chose the Money Smart
for Small Business and the work
that we have been doing with the Latino community. So, SBDC Rhode Island,
we have been here since 1982. We are part of
a national network of SBDC. We have a staff of seven and we work closely with
SBA partners and lenders. We work together with CDC’s,
with micro-lenders and other financial institutions. So how do we work here? Every SBDC, we do
one-on-one counseling, we deliver workshops, we have outreach locations
across Rhode Island, for example,
I have an outreach location in Central Falls with Mark. I also have outreach locations at the Providence – the Greater Providence Chamber, and at the East Bay
Chamber of Commerce. So, we are all over the state. We have a full-time staff
of seven but we also have
specialized staffing. Most of our job
is on business planning and financial projections. We’ll do also marketing, and any other areas
that assistance is required, we reach out
to different partners. So… this is from
our clients base. We work with 500 plus clients
in 2016; 90% of them would use
our services in the future and 92% of them would refer them
or recommend us to other friends or relatives. So, also in 2016,
we were able to raise $4.6 million in capital
for our clients. So, to give you an example, this is what we’re doing
in 2017. This is a client
we have been working with, we develop financial projections
from a feasibility study and from the STR report. So those of you who are not
familiar with the STR report, the STR report is a report that benchmarks
the hotel’s performance against the industry
in selected cities. So, basically, we took – the client had a 136-page feasibility study plus the STR report
which is 15 to 20 pages long. So, we took all of that
information and with that, we started working on
the financial projections. We had almost 53 hours
of counseling with this client and finally, a 10.6 million dollar loan was approved, $2.7 out of it from an SBA-504
and $7.8 from the bank. So, why did we choose MS – the Money Smart
for Small Business? Well, first as Mark said, because it’s available
in English and Spanish. Also, very important to us
is that they have – it has an excellent
collaborative material, beautiful, and at no cost
for the participants. Also, we like that it’s tailored
for different audiences. For small business,
for adults, for young people,
and for older people. Also, as Mark said,
the flexibility. You can teach it
in any order you want and as also Mark mentioned, because it’s free, and that’s very important
for our Latino community. So as Mark said, our sessions
started being – Mark had a session in English
and I had one in Spanish. So, because of the size, we decided to combine
both of them and we hold them in Spanish
and in English, but it’s not a translation. What we do is, we have
like a small conversation between Mark, myself,
and the participants. The classes on that
works very well. Most of the participants, even if they’re not fluent
in English, they understand business English
and it’s a lively presentation. So, another thing that we like,
we present and as Mark said, a standalone module. So, our work with
the Latino community here, I’m in charge of working
with the Latino community. In 2016, we had
59 Hispanic clients, we had 194 sessions and 200,
almost 300 counseling hours. In 2016, we delivered 72 hours
of workshops in Spanish and most of those hours
were sponsored by Claudia and Community,
and I have to thank Claudia, and Coastway Community Bank. Now for this year, for 2017,
we have 48 new Hispanic clients and we have had
156 counseling hours. So, to show you –
to share a success story is, I want to talk about
Raymond Brothers Tailor Shop and Laundromat. He was leasing space
in a Laundromat and decided that he wanted
to buy the laundromat so we had the first session to start working on
his business plan in all of 2015 and we’re still
working with him. We had 31 sessions with him,
70 hours of counseling which if we – they have
a value-added service of $52,000 considering the going rate
for private consultancy. So, we were able to get him
$100,000 plus dollar loan from the Community Advantage funds and for the Providence
business loans fund. This is our client
when the equipment arrived at his laundromat
and that’s him on the right, pushing the equipment
into the laundromat. So basically,
that’s what we have done with the Money Smart and
working with our Latino clients. So, I think I’m going to
pass this on to Claudia which is the next speaker. Go ahead, Claudia. Claudia Cardozo: Good afternoon,
everyone, can you hear me well? Manuel Batlle: Yes, go ahead. Paola Diaz: Yes, thank you.
Manuel Batlle: We can hear you. Claudia Cardozo:
Excellent. Well, it is a pleasure to be
here today representing Coastway in the company of
such wonderful advocates for the business community
here in Rhode Island. So, I work very close
with Manuel, and I am also very familiar
with the work ACCION does, I used to work for ACCION
as well. So, a little bit about – oh, can someone turn the slide
for me, please? Paola Diaz:
I will move the slides, we’re having a problem, operator, I cannot move the slides. Thanks. Claudia, please go on. Claudia Cardozo:
So, yes – so… My name is Claudia Cardozo, I’m the Community Development
Manager here for Coastway Community Bank
as a Community Liaison. I build bridges for
different organizations to be able to have more impact in this work. My primary functions
are to manage the corporate financial institution programs, I coordinate
volunteer opportunities for my colleagues
here at the bank, and I also work with individuals and businesses across the state to assist their needs,
provide guidance, and connect them with (associate) professionals here at Coastway, but also this is a network
for business resources. As part of the outreach
that I do in the community, I also serve on two boards and
advisories on behalf of the bank and also organizations –
some of those organizations are the United Way of Rhode Island, the Rhode Island Hispanic
Chamber of Commerce. “Young Voices”, which is
a wonderful organization which transforms
different youths into powerful advocates
in their communities, and also Dorcas International,
which supports immigrants in their journey to become
self-sufficient. And recently,
I got appointed to the certification
review community, I’m sorry, the Certification
Review Committee for minority business advisors
here in Rhode Island. So, to tell you about Coastway – so we will not be able to see the timeline, Paola? Paola Diaz: Thank you,
I will move the slides for you, going forward, thank you. Claudia Cardozo: Okay,
so if you could please put it on the timeline,
I would appreciate. Excellent, thank you. So, here in this graph, you can see a timeline
of our story. It started in the 1920s as the Telephone Workers
Credit Union, and 2009, Coastway
converted its charter into a Mutual Savings Bank
which enabled us to provide more comprehensive array
of loans and services to the local business community and also includes our consumer offerings
including FDIC-insured products. Later in 2014,
the bank went public which allowed us to raise additional capital to fund consumer growth. We have been successful
in using this capital to increase in volume not only in the business community but also in the residential mortgage community. We’ve remained Number 1
SBA business lender in Rhode Island
for three years in a row, which is very exciting,
and are consistently named “Rhode Island Housing Participating Lender of the Year”, securing more mortgage loans
for homebuyers than any other participating
lender in the state. We also have a full range
of products and services for business owners
from checking accounts, merchant services,
and small business loans, and we have lines of credit that usually go from
$20,000 to $1 million. Term loans, ranging
from $25,000 to $500,000, and also commercial mortgages from as little as $25,000 to $18 million. In terms of – we’re looking –
oh, actually no, can you go back please to
“Coastway in the community?” Yes, so we are very involved
in the community. It’s just part of the fabric
here at Coastway. The program,
the balance here, that formalized
the Money Program in the organization
established in 2010. Formalized, I mean,
they always had been, [indistinct] but it is just encouraging
more people to participate. And last year, employees
of the bank volunteer over – 4,000 community hours
through community organizations across the state. And so, we’re 150 employees,
and since 2010, we have donated over 25,000 hours
of community service. Paola, can I tell you
when you can move the slide? I just wanted to show –
can you go back? So – okay, let me just
go back to this one. So okay – so sorry. So the slide that you’re
looking at right now, I just wanted to point out
that on your right, you can see our friends
from “Young Voices” visiting our leadership team
here at Coastway. One of the youth participated
in a Youth Summer program in this summer, we have actually hired him
as a teller. And I’ll tell you a little more about the internship program in a minute,
but I just wanted to highlight how we are out there
in the community, we enjoy all types of events, from volunteering for
The United Way to the “Providence Art Festival” which brings thousands of people
together in downtown Providence to celebrate arts and culture. So now we can move
to the next one, please? Excellent, thank you. So, here you can see part of
our financial education team. In 2011, Coastway developed a
financial education curriculum. All of the materials
were drawn from the FDIC financial education materials because we needed – I wasn’t here at that time, actually I’ve been with the bank
only for two years, but in 2011,
they did a lot of flyers, and all of these things out that
they could customize the group and everything was sourced
from the FDIC programs. Since that time, we have grown from one person, and today we have
15 financial educators. So, as you can see in the slide, we have a financial educator for each of the branches,
and many of them, most of them, go out in the community
to deliver this work. We also have in a program now
called “Empowered by Coastway” and I’ll talk a little bit
about that in the next slide. So here I wanted to highlight – I mean, we work with
so many different organizations around the state. We work very close
with the City of Providence, we work with the
City of Central Falls as well, we – basically,
the CDC, CCAP, ACCION, and so many other organizations that help impact businesses throughout the state. Here I wanted to highlight
three different partnerships that we have with
different target groups. So, the “Comprehensive
Community Action Program”. We have partnerships with them
where every summer, we deliver three or four
classes to them. This year, we were able to reach
over 170 youths, high school youths, and ages
from 14 to 18 years old and we did financial education,
you know, where we were very engaging
by using a lot of tools, the information from the FDIC
that we also combine other programs to make it
more interactive for the youth. So, the “millennial” group,
actually we can – yes. So, the “millennial” group
is an organization that wants to keep
young professionals here in Rhode Island. Unfortunately,
overtime in the community, many young people
have left the state so we have great youths
taking leadership and we are trying to keep
young people here and employ them and educate them
in many different aspects. So, we signed an agreement
with them to deliver, you know, credit, budgeting, homeownership
and entrepreneurship workshops and the other, of course, that
I have here is “Primer Paso” which we can talk about it
a little bit later. Let me just – can you move
to the next one, please? So, I wanted to talk about
the “Youth Internship Program”. We have four high school youths, that have been part
of this program. Actually, one of them I think is
listening to this webinar today, which I’m excited. And the idea was
to then use Coastway to help them understand
what banking looks like, give them a view
beyond the teller line. I work very close with them so the financial education curriculum that we used, and they give us great feedback
on how they – we give them assignments
and they actually help us to create a better product. So yes, so we – when it comes to
working with young people, we need to engage them, we need to make sure
that they have hands on and sometimes in some of
the classes that I did for CCAP, I noticed that these are people
that didn’t know each other, they were coming from
many, many different schools. Can you go back
to the previous – go back to the previous slide,
please? So, yes, we noticed
that maybe the youths didn’t know each other
and they didn’t want to kind of talk to each other
so sometimes we do things that, you know, don’t necessarily have
to do with financial education, we do a small activity,
it takes five minutes, with flashcards and helps
to get them working together and get them excited, and
we do competitions around it. When it comes to the program and we have
our PowerPoint presentations that we introduce
throughout the session and, you know,
it’s to introduce them to the concept of budgeting,
and saving and credit and then we have an activity
where they have to do one year, budget for the whole year,
and then they get excited because it’s a competition
and we make it fun. The next slide, please? So, yes, this partnership
with “Primer Paso” with the Rhode Island Small
Business Development Center in the “Primer Paso” program which is it translates
a “First Step”, it is that, it’s the first step
for entrepreneurs and aspiring
business owners take to study the feasibility
of the businesses, and we love this program, we have sponsored
a couple of them, we are in the process of,
we’re working with Manuel to – in the purpose of recruiting
for the cohort. So, as part of the sponsorship, Manuel allows me to come
and give one or two classes to the business owners,
and I prepare a curriculum course credit in
“Access to capital”. I have used – I have combined
many different curriculums with Money Smart because I feel
that it is very important for the business owners
to know some of the basics, so we talk about credit,
we talk about borrowing basics, of course we talk about credit and just the perspective
of the lenders and so we want to show
that there’s some difference between them building credit
and the business building its own credit
but also how, you know, the personal credit affects their ability to get funding. So, I just wanted to share that, you know, even though
the “Primer Paso Program” has a different curriculum, because with the Kauffman Foundation, when I’m invited to speak
about “Access to Capital” I always draw from the FDIC,
I love all of the guides, the Instructor guides,
and you have everything there. You have
all of the information there, it’s just for you to kind of tailor certain information to the demographics
that you’re working with. So, thank you so much
for allowing me to speak and unless anyone
has any questions, I do appreciate
the opportunity to… Paola Diaz:
Thank you so much, Claudia, at this point
we’re going to ask Leandro to try to keep his remarks
at about three minutes. We’re going to be stealing
about a minute from everybody. Thank you so much,
go on, Leandro, I will move your slides. Leandro Freire: Thank you,
everyone, for the opportunity. So, my name is Leandro,
I have five years with ACCION, I have an MBA from
the University of New Hampshire, and I speak as well
Spanish and Portuguese. And prior to ACCION, I used to
work with JP Morgan Chase. Quickly about ACCION,
I want to speak about that we are a safe, affordable alternative lender. The reason is
that we provide loans to people with no credit history,
or for some reason, they don’t qualify for loans with banks, the community banks, so we come and we provide them with affordable loans. Nowadays you probably know
many business owners being victims of
predatory lending and that’s why it’s so important
because we are the bridge, we want to help them,
provide them some lending, provide them some guidance, and that’s what we see
right in the second slide. So, the second line, slide, shows the typical stage
of a small business finance. And in the beginning, they might not have the means
to apply for a loan so they go to friends,
family, crowdfunding. The second option, credit cards
with really high interest rates. So, before they go to banks
and the SBA loans, they come to us, and then in the beginning,
they might not be bankable, but once they go through
a program, once they are provided
the technical assistance, we help them, we guide them, they’ll be able to get a loan
with the bank in the future, but initially, they come to us. So why are we different? We have flexible requirements. If a business owner
has zero credit, or maybe they have a damaged
credit with a 575 FICO score, or they are established
in a high-risk industry so that’s – we have
very flexible requirements. We have trusted
affordable products, we have loans that go up to
$50,000, that’s a micro-loan, and then we have a special program for a community to go – that goes up to $250,000, and we also have a program
for startups to use less and then we have
high profile partnerships and we work with Mark,
we work with the SBDC, we work with Sam Adams,
and with Sam Adams, we work together in seminars
and a different type of work. So, our goal is
financial inclusion. So, right here you can see
that we work – 40% of our clients are female. The industry is very wide,
we go for service, retail, food and beverage, wholesale, and you can see it,
the ethnicity, 44% Latin American,
25% multi ethnic, 21% Caucasian, 10% African Americans
in our location. So, our goal is inclusion. In the office,
we speak Portuguese, we speak Spanish,
we speak Arabic, we want to make sure
that everybody is included. So, this is our impact. Every time –
we’re very happy to see that. Every loan we give –
so you can see, 3.7 jobs created and sustained
with each ACCION loan; 95% of borrowers will keep
their business open after a loan from ACCION. 23 percent will increase
their take-home pay after a loan with ACCION, a 50-point average increase
in credit score after a client. This is – I’m very happy, I’ve seen it going
from 0 to 680 to 700 so really causing
a positive impact; 79% of clients report
that their business is stabilized
or improved their household. 66% of clients
report satisfaction with income earned
from their businesses and there was something else
that is not there, our delinquent rate is very low, it’s below 4%, so when we work together
with Mark, with SBDC, Rhode Island Community, we see
a positive impact happening. So, we don’t only
provide the lending but we provide
the financial education, provide the instruction,
we sit with one by one, we make sure that they have
a successful story. So right here,
we have some examples; one of Natasha,
Natasha had no credit, zero credit, nobody was able to provide them lending. So, we not only provide them
the lending, the technical assistance, she also attended
some of your seminars, and today, she has
very good credit. We have here
Marcella Siders, she had less than two years
in operations, and at the moment, many banks
were not able to help her. So, we came,
we provided the lending as well, and then, we have another story with someone who had, at the time,
poor credit history. So, we also provide them
with credit coaching, how to fix the credit. How to improve it,
and as you know, it’s very important. So that’s the difference that
ACCION has in the community. So that’s why we work together
with the City of Central Falls, we work together with the SBDC,
with different partners, we join together forces providing lending options, technical assistance, and we want to make
a difference in the community. So, again, thank you, everyone,
for the opportunity, and I’ll give it back to Paola. Paola Diaz:
Thank you so much, Leandro, and to everyone for granting us
a few more minutes of your time. We did receive
a number of questions in the Q&A feature,
and we will address all of those in a document
that we will be attaching to the PowerPoint presentation
and the recording of this event as soon as
we have an opportunity. If you didn’t have a chance
to write in your question, please email it directly to me. At this point, you have
in the last slide my email, please feel free to let us know
if there are more questions. Our speakers will gladly address
those questions in writing. Thank you again, and operator,
you can end this call. Coordinator: Thank you, and this does conclude
today’s conference. – You may disconnect…
Mark Allio: Thank you all.

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