ArticlesBlog

Money Smart for Small Business Third Quarter Town Hall 2018

Money Smart for Small Business Third Quarter Town Hall 2018


OPERATOR: Welcome,
and thank you for standing by. For the duration of the call, all participants will be
on a listen-only mode. I would like to inform
all parties that today’s conference
is being recorded. If you have any objections, you may disconnect
at this time. I would now like to turn the
conference over to Lessie Evans. Thank you, you may begin. LESSIE EVANS: Hello, and welcome
to the third Money Smart for Small Business
Town Hall webinar of 2018. I’m Lessie Evans, acting Community Affairs
Associate Director at the Federal Deposit
Insurance Corporation, FDIC. I’m responsible for
leading a great team of community affairs staff
in Headquarters and in the regional
and field offices, as well as the outreach
and program development staff that creates
a host of resources responsive to the needs
of our stakeholders, which include all of you, financial institutions
and community organizations that work on
economic inclusion. I hope you all know
the community affairs staff, that’s the team of people
at FDIC that networks with you, provides technical assistance
and disseminates financial and economic inclusion resources
across the country. Our goal is to reach people who
are unbanked and under-banked, through our networks,
targeted resources, outreach events,
and technical assistance. One of the many
important populations that we’ve targeted are our efforts towards
rural communities. Since we have a rural
organization presenting today, I want to quickly mention
our work in rural America. Our staff focuses
much of this rural work collaborating in work groups. We have three of them, we have a broad
rural work group, a Native American work group,
and an Appalachian work group. Our goal is to
collaborate nationally and focus on efforts
to network with and support rural serving
financial institutions and other large rural serving
partners and stakeholders. We plan and host webinars,
roundtables and other meetings to identify
collaborative opportunities for capacity building and other economic
inclusion initiative. Our presenters today are from the Opportunities
Industrialization Center of Washington, and that’s
the state of Washington. They’re a community action
partnership organization that focuses on serving
rural communities. We have over 300 people
registered today. Thank you, and welcome. Thank you for taking the time
to learn about how to implement
Money Smart for Small Business, and we encourage you
to reach out to us if you need help
developing your program. This Town Hall is intended for
intermediary organizations, again, such as
financial institutions and nonprofits
working with entrepreneurs. As you know,
Money Smart for Small Business is a curriculum
cobranded by FDIC, and the US Small Business
Administration. SBA always joins us on
these Town Hall webinars. And today, we have
Nathaniel Bishop, Program Manager at the SBA’s Office of Entrepreneurial
Education here in Washington DC. He is here to welcome you. So following
Nathaniel’s remarks, our Money Smart
for Small Business National Point of Contact,
Paola Diaz, will provide a few reminders and will introduce
our special guest. Nathaniel, are you there? Please, tell us about
SBA’s work in rural areas. NATHANIEL BISHOP: Yes, Lessie,
thank you for that introduction. Hello to everyone,
and also the panel that’s going to be
presenting today. I just want to touch on
three key points there that you see on the slide there. One of the main focus
with SBA this year is also trying to tap
into rural America as well as farmers as well
in rural America. So, SBA this year,
in April 2018, signed a Memorandum
of Understanding with USDA, and part of that Memorandum
of Understanding with USDA, was one of the things
we wanted to improve, investment opportunities
in rural America. We wanted to examine
the synergies and streamline
some of our programs, programs that SBA offers,
programs that USDA offers, especially our lending programs. We also wanted to improve
innovation and rural technology within rural America as well. And the last one is that
we wanted to be able to aid rural businesses,
farmers and ranchers as well, and provide them with the tools
that they need for exporting,
and around the world. So that’s one of the reasons that SBA partnered
with USDA this year. We thought it would be
a great opportunity for us to work together
as we partner and try to grow rural American businesses. The other partnership
that I want to talk about that happened last year
which was August of 2017, was that SCORE and USDA
partnered together. And a lot of y’all may know
SCORE or about SCORE, that’s on the call,
but if you don’t know, SCORE is a SBA resource partner
where they have over 10,000 volunteer mentors
that train entrepreneurs and small business owners
around the country. They have over 300 locations. One of the things
we thought was great– this great opportunity
for SCORE was that, SCORE have mentors
that may have been in the farming business
or the agriculture business. So we thought it’d be
a great way to partner with USDA because as you all may know
or may not know, the demographic in farming
is changing. So farmers over the age of 65
now outnumber farmers under 35 by a margin of 6 to 1. Nearly 2/3 of farmland
is currently managed by someone over 55,
and over the next five years, nearly one million acres
of US farmland are expected to
change ownership, which basically looks like,
you know, you have new farmers and new ranchers
coming into play. So that’s one of the reasons why SCORE actually wanted to
partner up with USDA, because it encourages
cooperation and collaboration as one, and also will help strengthen
America’s agriculture business, particularly farmers, ranchers,
and rural businesses as well. The last point here on the slide
that I want to talk about is Native American
technical assistance workshops. So one of the things
we are also doing is also working with
the Native American community. Now we know
some of the communities are in rural America, and we know some of the
Native American communities are in urban areas as well, but one of the things
we wanted to focus on is actually providing
some entrepreneurial training and development
for Native Americans in rural America as well. So one of the things
we’ve been doing this year and we will continue next
fiscal year going into 2019, is that we are providing
entrepreneur training in 12 locations
throughout the country where folks will be able
to get assistance– Native Americans will be
able to get assistance in terms of how to–
starting a business or growing a business. So that’s one of the things
we are also working on in ’19 as well. And, just want to thank you all
for the time as SBA and USDA
changes partnership. Definitely check out
both websites, also check
our SCORE website as well and see all the great things
that everyone is doing around farming, ranching,
and providing the business tools and assistance they need
for rural America. PAOLA DIAZ: Thank you very much,
Lessie and Nathaniel. And Nathaniel painted a very
interesting picture for us, and that will be followed by
a detailed presentation about an organization
that focuses on the rural area. So I am Paola Diaz,
the National Point of Contact for Money Smart
for Small Business. We will be using the acronym
MSSB, going forward, to refer to Money Smart
for Small Business. And one thing
I want you to know is my job is to promote MSSB
in collaboration with SBA, and make sure that our content
stays current based on industry changes and the feedback
we receive from users. So I want to know
any time you have feedback or comments
about our resources, or whether you think
there’s anything else we need to create for you
to help entrepreneurs. Again, welcome,
and before our guests join us, I will go over three items, and one of them is a disclaimer
that you have in your screens on slide number five. So reference to
any specific organization does not constitute an
endorsement, a recommendation, or a favoring by the FDIC
or the United States Government. Next, I just want to share
the webinar platform and we want you to know, we expect you to be
very participatory in this– by using this system. And for that, you simply use
the chat or the Q&A functions. In your screen
on slide number six, you have a model
of your webinar platform. On the left side,
you can see the slides, on the right side,
you see various functions. The chat feature is marked with
the number one. You may ask questions
to the panelists as they come to mind,
or during the designated times with the Q&A feature,
which is the number two. When using the chat
or Q&A functions, please be sure to hit “Send” which is number four
in the chart. And if you lose this slide, look for a green or blue
circle icon, number five in your taskbar,
or reopen the webinar link. We will conduct a poll
at the end of today’s event, and the polling questions will pop on the right
on your screen. And if you’re having
technical difficulties to join the webinar platform,
you can contact Topazz Tucker, and her email
is on slide number two. We sent an email to all
registrants prior to the event, but if you didn’t receive
the email, you simply go to
the event website and go to the tab
“Event Presentation” and you will be able to
download the slides. We will be referencing the
slide numbers from time to time. Next, a few reminders
based on the multiple questions I get in between Town Halls. So please know that you can join
the Money Smart Alliance. You can find recordings of prior
Money Smart for Small Business Town Hall webinars, and find more Money Smart events
at the fdic.gov/moneysmart. Hopefully, that’s memorable.
You don’t need to write it down. You can download
any MSSB module and MSSB Train-the-Trainer
curriculum any time from the catalog.fdic.gov. The website is also in
your slide number seven. Thanks for the questions
you submitted during the registration process. We have already addressed
some of them one-on-one, and some will be explained at the two designated
question and answer segments. Please know again, that Topazz Tucker
is monitoring your questions via the webinar platform
or by email. Please, be reminded that
all participant lines are muted, but you are expected
to participate via the chat function. So today, we will hear from Opportunities
Industrialization Center, OIC, in the State of Washington. This is a rural organization
that is part of the community
Action Partnership Network, and is recognized as a Micro-Enterprise
Development Organization by the US Department
of Agriculture. Candi Jaeger and Carolyn Mackay
will tell us how they use Money Smart for
Small Business in four ways, and how this resource fits within their
organization mission. Additionally, we will hear
directly from a job seeker that became an entrepreneur
with assistance from OIC. We will pause about halfway
through the presentation for questions and answers. So, Candi and Carolyn, thanks again for working
on this presentation, we are eager to learn
from your experience. Candi, are you ready? CANDI JAEGER: I am.
Good afternoon, everyone. My name is Candi Jaeger, I’m the director
of the Prosperity Center at Opportunities
Industrialization Center, also known as OIC,
in Washington State. And with me is Carolyn Mackay, our credit housing
and business coach. Carolyn and I will be
sharing details about how we deliver
Money Smart for Small Business and how it fits in with
other programs and services that we offer. First, a little bit
about myself. I have been in the nonprofit
and asset development field for 12 years, working exclusively with
community action agencies. If you’ve never heard
of the designation before, you should know
that there are hundreds of community action agencies
across the United States. These are local,
private and public nonprofit organizations that carry out
the community action program, which was founded in 1964,
Economic Opportunity Act, to fight poverty
by empowering the poor as part of the war on poverty. OIC is a nonprofit
community action agency that was established in 1971
to eliminate unemployment, poverty and illiteracy, so that people
of all colors and creeds can live their lives
with greater human dignity. The Prosperity Center
and the other OIC programs, serves people
that are most at risk in the rural areas
of Washington State. We work to afford
the second chance for these individual
and families with multiple life challenges. OIC provides services
through six divisions and they include community
and emergency services such as energy assistance, education and employment
training, home weatherization services,
youth services. We provide food banks and provide personal financial
assistance development services. Money Smart
for Small Businesses falls into number two
and number six on the slide. For over 46 years of partnership
with the community, local, state,
and federal partners, we have helped
Washington residents become self-sufficient
through our programs, including jobs,
skills training, high school education
completion, energy assistance,
emergency food assistance, youth and senior services, and money management
including business counseling. The Prosperity Center
is a program of OIC and operates in both rural
Grant and Adams Counties in Washington State. We are a financial
planning program that provides services
and financial education, money management,
home ownership counseling, foreclosure counseling,
credit budget counseling, and also Micro-Enterprise or small business
development services. We are currently funded
by the Washington State Housing Finance Commission,
Department of Commerce, with community development
block grants and community service
block grants. As you can see, the Prosperity
Center program of OIC, focuses on financial training,
home ownership, and business coaching services. The business coaching
represents about 10% of our overall client count. We have assisted over 100
small business startups in the last eight years, which translates to well over
100 jobs saved or created in these small rural towns. The Prosperity Center
is a Micro-Enterprise Development Organization
also known as MDO. I will be using the term MDO,
going forward in this presentation. To become an MDO,
recognized by the US Department of Rural
Development Program, an organization must offer
three services. The first one is training
and technical assistance; the second one is mentoring; and the final aspect
is micro business loans. Microloans are short term
and low interest loans up to $35,000, and are used
for working capital or the purchase
of inventory, supplies, machinery or equipment. OIC’s in-house loans
are up to $5,000, and we refer our clients
to larger local lenders like Tri-County Economic
Development District, Mercy Corps Northwest,
or USDA, for loans over $5,000. Now, my colleague,
Carolyn Mackay, will describe how we use
Money Smart for Small Business through our four approaches. Carolyn, please share
a little bit of your background before you start. CAROLYN MACKAY:
Thank you, Candi. Hello, I’m Carolyn Mackay, Credit Housing
and Business coach, here at Prosperity Center. I come from a real estate
and accounting background, I have counseled
hundreds of clients since 2009. I’m happy to share
our perspective on small business development. I’m on slide 15. We offer many programs
through the Prosperity Center, business coaching is
just one of our many services. All clients go through
the intake process, we run everyone’s credit, work on their business
and professional budget, and really discuss
their needs and desires before beginning
the coaching sessions. This process gives everyone
the full picture and helps drive
the client’s decision making, whether it’s to purchase a home,
foreclosure options, work on a monthly budget,
improve your credit score, or start a business. We have
four different methods when offering
the business services. We conduct group classes,
one-on-one counseling, self-employment
assistance program which is known as SEAP, and standalone
topics-specific workshops as requested by
partner organization. A group class,
one-on-one counseling, or SEAP, is a requirement to apply
and receive any microloan. An initial intake appointment
is conducted prior to any of these services. A group class is usually
FDIC MSSB modules, there are generally
five to 20 people per class, and each class
is three hours long, once a week,
for five to six weeks. Pre and post tests are used, and evaluation sheets
are filled out at the end of the course. Certificates are given out
to those that have completed every module
and attended every class. Clients must complete
the entire course to receive a certificate. This course is
a requirement for anyone applying for a microloan. After completion
of the 13 modules, several of our clients
and business owners continue to work with us, especially during
our startup and first year. We are somewhat
limited with resources due to the lack of funding. This module is the order
of the modules we use for class in one-on-one counseling. MSSB has 13 training modules,
and we use them all as they are. We have not made
any modifications. We have designed our program by combining two to three
modules in each class as shown on this slide 19. We think that this flow in order is consistent with the steps
of developing a business. As we work through the modules, the client has homework
and research to accomplish before the next coaching
or training session. We review the modules’ homework and see what they need
and answer any questions. We are always encouraging and provide positive
reinforcement to the clients as they work their way
through the modules. Washington State Self-employment
Assistance Program or SEAP, is a program
in collaboration with the Department of
Social and Health Services and Employment Security
and Unemployment. A person on unemployment can go through
the business coaching classes or one-on-one sessions in lieu
of conducting job search. Job search
is a requirement to receive
unemployment benefits. Attending this class
is time consuming, so, for five weeks, the client
can go through our program and dedicate time
to plan for a business instead of searching for a job. The client can attend
longer than five weeks, but must continue job search
after the first five weeks. We have had some clients
that after the training have decided that this is
not the time for them to start a business, but they have made an educated
and informed decision. PAOLA DIAZ: So, at this time,
we want to pause for questions, and we have several. Someone asked my colleague
Topazz to read the first. Please, Topazz. TOPAZZ TUCKER: Do you have
to get a specific… PAOLA DIAZ: Yes, go on. TOPAZZ TUCKER: Do you have to
get a certification by USDA in order to become an MDO? If so, how long
do you remain certified? What is the reporting
requirement? PAOLA DIAZ:
Thank you, Topazz. Carolyn, or Candi? CANDI JAEGER:
Hi, this is Candi. So, no certification is required
other than the fact that you need to
offer those services– the three services,
the technical assistance, and you have
a mentoring program in place, and you need to offer loans. So when applying for the funding
from USDA or other funders, there are some money
awarded to MDOs. The monies that are
awarded to MDOs, we need to verify
that we offer these services and provide detailed information
and outcomes as expected at the time of application. So, yes, there is no, like,
official certification other than just being
able to verify that those services
are offered and that you are
in a rural area… less than 50,000 people
in your area. TOPAZZ TUCKER: Thank you.
We have another question. Do you have the same instructor
to teach all five classes, and is this instructor
a volunteer or a paid staff? PAOLA DIAZ: Thanks. CANDI JAEGER: So,
we use our internal staff for these classes. However,
we do have guest speakers on topic-specific things–
insurance, LNI. So different things like that, we will have
guest speakers come in. But for the modules themselves,
we use Carolyn and other staff in-house. PAOLA DIAZ: Great. Thank you. We’re not going to give you
a pause here, there’s another question,
go on, Topazz. TOPAZZ TUCKER: How are you
able to fit so much content into the one-and-a-half
to two-hour coaching sessions, when it takes you three hours
to teach the same content in the group format? PAOLA DIAZ: Thank you. CANDI JAEGER: Carolyn, I’ll
let you go ahead and take this, since you teach the classes. CAROLYN MACKAY: Okay. In the one and a half to
two hours one-on-one coaching, the modules are done at home,
and we review and coach through each module
when the client returns. In the class,
we teach the modules, classes have more questions
due to more people speakers and one-on-one offers
individualized assistance. PAOLA DIAZ: Okay,
we are going to continue, and we are going to pause again
for questions at the end. So I think, is it Carolyn– Go on. CANDI JAEGER:
Yeah, so thanks, Carolyn. The second aspect
of being an MDO is offering
mentoring services, as I mentioned earlier. In addition to
the business counselor here at the Prosperity Center, we have a pool of
local business professionals who also mentor
new entrepreneurs. If meeting
with the local mentors isn’t working
for the new business owner, we refer them to MicroMentor. MicroMentor is available to
anyone anywhere in the world. It’s a free,
easy-to-use social network that allows entrepreneurs and volunteer business mentors
to connect, so that they can
problem-solve and build businesses together. The last requirement
to be an MDO is lending. OIC offers in-house
small business microloans. Our loans range from
$500 to $5,000, and a client
must attend a class or attend the one-on-one
coaching sessions. They must complete
a loan application and provide a credit report,
business plan, a license,
and show financials. We don’t compete
with outside lenders because these ones are
only available to clients who have been turned down
by conventional lenders. Some collateral might be needed,
but a person’s character is really a big factor
in these loans. Our loans are
usually short term, they are 24 months or less,
and they have zero interest. However, if we do have a client
that need larger loans, we do assist the client
with loan packaging. This can be very time-consuming. So after the group class
or one-on-one counseling, and the completion
of their business plan, and the completion
of their financials, we assist the client
with preparing their paperwork for the application
to the larger lenders. Like I said,
loan packaging takes time and requires
a lot of information. So this is why the group and
one-on-one coaching is required. We need the clients
to fully understand exactly what
they are applying for. We work with an organization
called Tri-County Development, and we also work with
Mercy Corps Northwest. They both consider
loan applications contingent also on the fact that the borrower
has been turned down by conventional lenders. Once the package is complete, it is submitted to
Tri-County for review and approval or denial. Applications are reviewed
by their loan committee which always have the final
loan approval authority. Applications can be based on each potential borrower’s
credit listing, or character, what kind of
collateral they have, what their business plan
looks like, and the ability
to repay the loan, as well as
the economic impact that their business might have
on the community. Borrowers applying
for this funding through Tri-County,
USDA and Mercy Corps, also have to have been denied
by a conventional lender. These loans are not
necessarily low interest and generally
requires some collateral. Tri-County utilizes
Rural Opportunity Loan Fund, also known as ROLF,
and they serve rural counties in the eastern part
of Washington State. They are funded by
state and federal dollars, such as
US Department of Commerce, Economic Development
Administration, USDA, and Washington
State Department of Commerce. ROLF has been providing
financial assistance to small businesses here in
eastern Washington since 1984. Their loans range from
$500 to $250,000, and are available
depending on location and what the intended use
is for. Our clients that need to
apply for Tri-County loans go through classes,
one-on-one counseling, and then we assist them
with the loan packaging. Tri-County is funded
in part by USDA. USDA offers many types of
different lending programs. Listed on slide 29 are some of
the business lending programs. Rural Microentrepreneur
Assistance Program is also known as RMAP, provides loans
and grants to MDOs, so that they can offer
small loans to business rural areas
outside the city or town with a population of
less than 50,000 people. Urbanized areas near a city
of 50,000 or more may not be eligible. USDA RMAP program,
like I said, provides loans and grants to
MDOs and organizations like mine and like Tri-County
Development, so that they can offer
small startup loans to borrowers and micro-entrepreneurs. To be eligible to apply
for this funding from USDA– from Tri-County,
I’m sorry, the borrower must live
in the eligible rural area and employ 10 or fewer
employees. They must have finished the
training in technical assistance and they must have access
to a mentor… and qualify for business
activities and expenses that include, but are not
limited to, working capital, debt refinancing,
purchase equipment and supplies and improve real estate. Follow the link
to see the eligible area. OIC is not a lender
for this program. Our organization is
working with Tri-County in lieu of competing
with them for funds in the same service area
and additionally, they have more lending
expertise. We are a small program
with very few staff, so partnering on
these types of loans is vital for the success
of our clients. CANDI JAEGER: We have
many local collaborations. We work with the chambers… PAOLA DIAZ:
Sorry, Candi, to interrupt. CANDI JAEGER: Yes. PAOLA DIAZ: I just wanted to
ask a few questions because there are
several questions related to the loan programs
that you described before you jump into
something else. I hope you are okay
to take some of those? CANDI JAEGER:
I will certainly try. I’m not familiar
with every loan program but I will do my best. PAOLA DIAZ: Thank you. So, this is a question
about the number of months that the microloans
are extended for. I know you said short term,
but maybe they want to know how many months
are your loans for? And also, they want to
hear examples or a range of the annual
interest on these loans, and is there a cap
to interest rates that you can charge? Thank you. CANDI JAEGER: Sure. So the in-house microloans
that we offer up to $5,000, we have zero interest, and it’s usually
24 months or less. Usually our clients don’t borrow
all the way up to the 5,000, so they’re able to pay
that back within 24 months. The larger microloans,
they’re usually up to $35,000, and depending on the lender, if it’s Tri-County
or Mercy Corps, their loans are usually
from two to five years and their interest rate
is only 6% to 10%, depending on the credit score, and just kind of
what the business is, and how long the loan is. And then,
if it goes past the 35,000, that’s really not considered
a microloan, anything over 35,000. And so those loans can just–
it depends on the amount, they can go out
for quite a few years and the interest rate
is a little higher than the 10%. PAOLA DIAZ:
Thank you, Candi. There is a couple more questions
related to the loans, so I’m going to have those
asked now, thank you. TOPAZZ TUCKER: Is there
a minimum credit score required for your microloan
application? CANDI JAEGER:
So, for our in-house ones, we don’t necessarily
go off credit score, a lot of it is off of character,
because most of our clients– well, because they have to be
denied by a conventional lender, most of the time the thing that
hangs them up is credit score. So, we go a lot of–
a lot off character for our qualifications, and I know that’s similar
with Tri-County and Mercy Corps, they do–
Carolyn, do you know what the minimum credit score
is for them? CAROLYN MACKAY: They did not
give me a minimum credit score, but with Tri-County,
they look at the credit score in establishing
the interest rate, because they know
they’ve already been refused and there might be some problems
with the loan itself. So… but they usually go
between 6% and 10% is what they’ve told me. PAOLA DIAZ: Thank you. CANDI JAEGER:
Did that answer that question? PAOLA DIAZ: I think so. We will see, we have
more questions in the Q&A. There’s another one
before we move on. TOPAZZ TUCKER: Do you report
your microloan borrower’s payments to credit bureaus? PAOLA DIAZ:
Thanks, Topazz. CANDI JAEGER: So,
the OIC program, we do not, because they’re such
short term, zero interest, but I do believe
that Tri-County does, as well as
Mercy Corps Northwest. Which is a benefit
to the client because we really don’t have
default on those loans because the clients go through
the technical assistance and they’re mentored
the whole time and they have help
with their budgets, so it’s actually a good thing that they’re reporting
to the credit bureaus. PAOLA DIAZ: Thank you.
Well, at this point, we can go back
to the presentation flow, so we are on slide 31–
“Other collaborations”. Thank you. CANDI JAEGER: We have
many local collaborations, we work with the chambers
and business associations for outreach and education. The Small Business Development
Center at the local college is a huge help for clients, and then they also help
with the business plan research. We refer clients
back and forth often. Tri-County Development,
Mercy Corps Northwest, and other social agencies
are all great resources and advocates
for the work we do. I would like to
take this time now to introduce Israel Gonzalez,
he is one of our SEAP graduates and a business startup client. PAOLA DIAZ: Welcome, Israel,
we are happy to have you. ISRAEL GONZALEZ:
Hi, good morning, everyone. How’s everybody doing? PAOLA DIAZ:
Great. Thank you. ISRAEL GONZALEZ:
Good to hear. Okay, so, I’m going to
go ahead and tell you a little bit about myself,
my name is Israel Gonzalez. When I first had in mind
I’m opening my own business, I was not aware of
all the responsibilities, regulations and information
a business owner would need in order to be a successful
business owner. So I initiated my business
this July 2018, and the business name is
IGM Health & Safety Training. My goal is to increase
production and safety for the employer and employee. My qualifications
to bring the two together, are ten years of experience working in the field
in agriculture; and increased awareness
and knowledge for ultimate production; and awareness
exceeding my requirements by becoming certified. As you can see on your screen, you can see
my certifications there. If you have any questions,
please feel free to ask. I’m also happy to offer
my bilingual services in Spanish and English, to increase
awareness and production while minimizing hazards
and unwanted claims. I’m also glad
to help facilitate the rise to a greater financial future for both the employers
and employees. You can see there
on your screens, you can see the different types
of trainings that I provide. Also, in addition
to my certifications, I have been endorsed by a great
five-week program course called Self-Employment
Assistance Program known as SEAP,
offered by the Prosperity Center here at OIC, Washington. With SEAP, I have gained
valuable and helpful information that will help me in becoming
a great business owner. The SEAP financial
education curriculum consists of 13 chapters; all 13 chapters
of the curriculum are very interesting,
helpful, and very informative. One of my favorite topics
was managing cash flow. The cash flow diagram
taught me that, owning a business is not just
for making money and spending it but to use
the cash conversion cycle and manage your money. One of my favorite parts
of the training is, the curriculum is also
available in both languages, English and Spanish, so that’s,
that’s very helpful as well. The counseling has helped me
on gaining quality information and techniques to put in use
to succeed and become a successful
business owner. Meeting once a week
for five weeks with my counselor was not just a commitment
with the program, but it was very inspiring. Every time I arrived
to meet with my counselor, she would greet me
with such positive and motivative attitude. The counseling assisted me
on getting my business license, my business cards,
and also gave me guidance on how to stay organized
and much more. The program has also helped me
in becoming a business owner, and has helped me
in using my area of expertise. Through their training,
I am certain of my success as a business owner, as an instructor,
and a trainer. Any questions? PAOLA DIAZ:
Well, I have to say, they really trained you well
on your elevator pitch, I think we’re all sold
on your business idea and we certainly
wish you success. Thank you
for the presentation. This is the first time
we have an entrepreneur in one of our modules,
so I think it energizes all of us
to hear your enthusiasm. ISRAEL GONZALEZ:
Well, thank you very much, and it’s been an honor being
part of this meeting here. PAOLA DIAZ:
Well, thank you. I think there are
a few other thoughts and pictures
of other happy customers. Candi, do you want to share
your final thoughts? And we do have
some more questions after you have shared
your final piece of advice. CANDI JAEGER: Sure, sure. Israel, thank you
for sharing your story, and there are a few pictures
of our other classes, but my final thoughts, we may not be able to assemble
hundreds of people on our training events,
but our approach is on depth. So we devote significant
time and effort to help a few individuals
rather than reaching hundreds. Rural areas are a challenge,
and some clients travel one hour or more
just to get our services because they have no other
alternatives in this area. Our service area
is 4,500 square miles right in the middle
of the state. We have clients
outside of our service area that drive up to two hours
to seek out assistance from us. And there is also very little
public transportation, which is a barrier in itself. I’d encourage banks
and credit unions to look for organizations
such as ours to reach consumers
and businesses in rural areas. Having local lenders
and banking partners are really vital in the success
of a program like ours. Our biggest issue
is getting locals to see the value in small business,
and connect the fact that small businesses
do generate jobs in these small communities. Being rural, we just don’t have
the financial resources like larger, urban,
or metropolitan areas do, so financial assistance
keeps the doors open to assist clients. PAOLA DIAZ:
Well, this is great. We really appreciate
your presentation, and there is
a few more questions that came from the audience. Topazz? TOPAZZ TUCKER: Please tell us
everything you can about the impact
of your classes? PAOLA DIAZ: So I feel you
covered quite a bit about that, but if you can, perhaps
tell us specifically, how do you measure
your impact. And I know, being a nonprofit,
this is a very important element and I know this is
what helps you get more funding and support for your programs. Can you talk
a little bit about that? CANDI JAEGER: Sure. So, as I mentioned before,
our classes help clients decide if business ownership
is really right for them. Over the last seven years,
we have assisted more than 100 businesses,
startups in expanding, that equals roughly 200 to 300
jobs in our small community. We measure our impact by that,
just how many– what’s the job growth? How many jobs have we started
in these areas? People don’t see an impact
when a small business opens, though when you look at it
in a larger picture, it’s like the equivalency of,
like, opening a large factory and hiring 200 new employees. So really, yeah, we measure it
by the jobs started, or sometimes even
successful people realizing that they’re not ready
to start that business. There are several different ways
that we record our outcomes and recognize the impacts
of the work that we do. PAOLA DIAZ:
Thank you, Candi. There’s a couple of attendees
have asked us– they want to hear a little bit
more about MicroMentor. So, I’m going to go back
to that slide while you tell us a bit more
about it. Thank you. CANDI JAEGER: So, MicroMentor
is a social network… just like any other
social network, like, Facebook or LinkedIn. You sign up
and you can be matched– you go through a list and you can see, like,
who the other mentors are anywhere across the world
actually, and you can sign up
and ask them to be your mentor. And then you can start
some conversations to see if it’s a good fit
for your business. So, it doesn’t necessarily
even have to be someone in your same field. But as they are looking
through the mentors, they might see someone
that maybe has, you know, some information,
perhaps, on financials, and they need more information
on financial specifics. So they might be a mentor or
a mentee or someone like that. And then later on,
if they want a mentor regarding something different, they can sign up
with a different mentor. So, like I said, you could be
matched up with someone even in a different country. PAOLA DIAZ: So, is it free
to use MicroMentor and do you– does an entrepreneur
need to go through an organization such as yours or an entrepreneur can go
directly to the MicroMentor.org and find a match? CANDI JAEGER:
MicroMentor is free and they don’t
have to go through an organization like ours, they can just go straight
to MicroMentor.org and sign up there. PAOLA DIAZ: Great. There’s
another question about impact. TOPAZZ TUCKER: Do you use
the pre and post-test survey or other tools to assess impact? CAROLYN MACKAY:
Candi, I can answer that one. CANDI JAEGER:
Okay, go ahead. CAROLYN MACKAY:
Yes, we review with the client so we can assist them
in understanding and why they need to know
this information. So it’s good to see
what they didn’t know before and what they learned
from the modules. PAOLA DIAZ:
Okay. Thank you. I want to encourage
participants again, I believe we still have
our representative from SBA, if you have questions
for Nathaniel, you can also ask
during this time. There’s one more question that I’m going to ask Topazz
to read. TOPAZZ TUCKER:
How do you draw attendees in? There was someone
who was having a hard time signing up
a significant numbers of– PAOLA DIAZ:
…entrepreneurs to the classes? TOPAZZ TUCKER: Yes.
PAOLA DIAZ: Thank you. CAROLYN MACKAY:
Okay, this is Carolyn, I’ll answer that one. We do, we use fliers,
we use radio spots, and we advertise through
all our community partners and we seem to get filled up
rather quickly. PAOLA DIAZ: Okay, good. Well… I am going to
take the time to address at least one question that
came through the registration for FDIC, and the question was whether
Money Smart for Small Business can be used in
an apprenticeship program? And the answer is, yes. I don’t necessarily know
specifically about an organization
that uses it that way. But by, you know,
the wide array of presenters that we’ve have had
in our Town Hall who tell us that they don’t
have to modify anything to use the materials, I can tell you with confidence
that these materials can be used
to teach any audience. In fact, some of the modules
are even appropriate for youth. We have intentionally created
our materials in simple language so that they are easily
understood by somebody that doesn’t necessarily have
a very strong business acumen. We intend for the materials
to be easy to understand, and there’s a few
that are technical like the cash flow, that someone would need
a little basis of financials to understand it. But most of the modules
are considered introductory and as a matter of fact, they do serve as a good basis
to go further. So, like this organization,
like OIC uses it; I think it’s probably one of
the most successful approaches, because the participants
are able to go to a class and afterwards,
they are able to follow up with a one-on-one with a mentor,
with a coach, in one-on-one. I also got a question if MSSB
can be used in a podcast. Yes, all of FDIC resources are–
you know, we are the federal government, all of our resources
are free of copyrights, we make it available
to everyone for use. And one thing that
we encourage you to do is, to let us know whenever you’re
using it in innovative ways, like using it in a podcast. The only thing that we ask
is that whenever you’ve changed our material
very significantly, you consider, you know,
calling them something else and giving us some credit
and saying that they were based on Money Smart materials,
but other than that, we’re not here
to police anyone. We don’t ask anyone
to become certified to use Money Smart for Small Business. As I said, literally,
anyone can go to our websites to the FDIC catalog,
and download our materials and use them right away. So, there’s another question
I want Topazz to read from Steven,
would you recommend… TOPAZZ TUCKER: Would you
recommend MSSB to be used in a correctional environment
for offenders within one year of re-entering
mainstream society? PAOLA DIAZ:
So, I do want to share a little bit
of my perspective, and I basically
already covered that question when I was answering
if these materials can be used for
an apprenticeship. But I also– I don’t know
if OIC has any experience working with this population. If you want to chime in, or simply,
you can just comment on whether you think the materials
are generic enough that they can be used by anyone. Candi or Carolyn…
CANDI JAEGER: Sure, sure. PAOLA DIAZ:
I welcome your comment. CANDI JAEGER:
I would say, it’s very easy, we’ve actually used it
for youths 18 and under– actually 23 and under. But the modules were easy
for them to understand, the financial one,
we had to go into, you know, a little bit more
in-depth with them, but they all liked it. They did well in the class
and they enjoyed it. So the modules
are easy to use and easy to understand
for most everyone. PAOLA DIAZ:
Thank you. Carolyn? Do you have some thoughts
you want to share? Okay. Well, there’s another question
that came in that I think– I feel that we’ve
covered it already. We were asked if MSSB
can be used in– Can I teach MSSB in my school,
was the question, And, once again,
the answer is, yes. As a matter of fact, schools
qualify as Alliance members. So this gives me an opportunity
to just tell you a little bit about the eligibility. So, at this time, we welcome
any financial institution to join
the Money Smart Alliance, as well as any nonprofit
organization, and that includes
government organizations, it includes K through 12
establishments. So we have a bunch of schools that use Money Smart
for Small Business and we always encourage you
to let us know. We have about 800 organizations
that have recently rejoined
the Money Smart Alliance, because we’ve been trying to
monitor and coordinate this community of practice
for several years. But we recently did
a cleanup of the database and we asked people to re-sign,
but we know for sure that there are many more
organizations actually using it. And, since we do a number
of outreach events, as Lessie described
at the beginning of the event, it is very useful for us
to be able to know who’s… often because people
visit our website, and they particularly go to the
Money Smart Alliance website where they can download a list
of Money Smart Alliance members and find organizations that
teach Money Smart near them. And I want to encourage you, whether Money Smart is
a small part of what you do, like, for OIC,
they do a whole lot, I mean, they have
enough materials to discuss in one hour. And this is only 10%
of what they do basically, based on
what they were explaining that 10% of their clients
are business clients. So I encourage you
to join the Alliance, no matter if Money Smart
is a small part of what you do or a big part of what you do. And at this point,
I want to ask our operator to please help us
launch the poll so that we can get
some instant feedback. And the poll is open
to your right, and I see some people seem to already be
participating in the poll. So the questions
are on the slide, but the answers, actually,
you have to click on the right hand side
of your screen. And… I also want to use
this opportunity to remind you that this event
is being recorded and it will be made available
to everyone who registered. We usually make it available
to all participants; about two to three weeks
after the event, we send an email, but we also publish it
in our website. Within the fdic.gov/moneysmart, there is the Money Smart
for Small Business tab and within that,
there is the Town Hall tab, where you can find past events, and a link to register
to new events. Once again,
as Lessie invited you, if you don’t already know
your community affairs point of contact, please go to
the fdic.gov/communityaffairs and you will find your
point of contact right there. Or, I am also happily
and readily available to take any questions you have
about implementation. So with this, I thank you
for your time today and you have about five–
three minutes. Thank you for your feedback,
and please, let us hear more, and once again, I want to thank
Candi and Carolyn from Opportunities
Industrialization Center who did a fabulous presentation, and they shared their
secrets and details with us. Thank you,
Carolyn and Candi. Operator– well,
unless Candi and Carolyn have any final thoughts… or Nathaniel,
if he’s still available? Otherwise,
we’re going to adjourn. CANDI JAEGER: I’d just like
to take the opportunity to thank you
for having us today and I’m happy to answer
any questions. My contact information’s
in the slide if any organizations out there
have specific questions that we didn’t cover today. PAOLA DIAZ: Thank you
for being so generous to share your email,
so I remind the participants that your email and phone number
is available. And once again,
Lessie reminded me to thank Israel for taking
the time to share his experience and his feedback
with us today. Operator, you can end
the call at this time. Thank you. OPERATOR: That does conclude
today’s conference. Thank you for participating. You may disconnect
at this time.

Comment here