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7/30/2019 Bridges - Winter 2012/2013
1/12
PUBLISHED QUARTERLY
BY THE COMMUNITY
DEvELOPMENT
DEPARTMENT OF
THE FEDERAL RESERvE
BANK OF ST. LOUIS
L i n k i n g L e n d e r s A n d C o m m u n i t i e s Winter 2012-2013
Bridges w w w . s t l o u i s f e d . o r g
2 4Bank On Louisille HelpsLead the Way to Financial
Empowerment
Going Digital? News
from the Managing Editor 6
continued on Page 3
By William Elliott
O
ne o the primaryresearch questionsdriving the work o
the Assets and Education Ini-tiative (AEDI) at the Universityo Kansas is this: Are all typeso college nancial aid createdequal? Increasingly, the evi-dence suggests that the answermay be nothat assetapproaches to helping children
pay or higher education
may yield supe-rior educationaloutcomes and may
provide or a betteruture than relying onstudent loans.
Compared tostudents withoutsavings designated
or college, thosewith collegesavings aretwice as likelyto be on course
St. Louis Community CreditUnions Newest Branch
Represents Innoatie
Community Partnership
Are All Types of College Financial Aid Created Equal?
tion remainsDoes saving orcollege only make a dierencein students achievement at thepoint when they have savedenough to pay most o their
college expenses? I so, howcan systems be designed andnanced to provide adequatesavings, especially or low-and moderate-income (LMI)
or college completion.1 Whileresearch about the precisepsychological, social and insti-tutional mechanisms throughwhich these eects are realized
is still evolving, it is increas-ingly clear that saving changeshow students think aboutcollege. Importantly, becauseassets accumulate as students
Having a school savings account with
even $1 or less increases the odds
that a child will enroll in college.progress toward college, thechanges in educational expec-tations and behavior that occurcan improve academic peror-mance, helping them prepareboth nancially and intellectu-ally or higher education.2
Evidence o these edu-cational outcomes throughstudents careers has contrib-uted to interest in childrenssavings. However, the ques-
students whose amilies areunlikely to be able to contrib-ute signicantly?
Some o AEDIs recentresearch suggests that evenvery small account holdingsmay yield signicantly better
educational outcomes thana complete absence o sav-ings. Having a school savings
2013 iStckpt.cm / YinYang
IN
D
EX
T h e F e d e r a l r e s e r v e B a n k o F s T . l o u i s : C e n T r a l T o a m e r i C a s e C o n o m y
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I
n the Spring 2012 issue oBridges, we announced thetransition o the newsletter
to an online-only publication.So, why am I bringing thisissue back to your attention?
Well, as a part o the process,we asked that you provideyour e-mail address in orderto receive alerts or new issueso the newsletter. You weredenitely paying attention.
Reader responses wereamazing, heartelt and greatlyappreciated. Obviously, this isnot an issue that people ignore.Many subscribers strongly
supported retaining the printversion, while some did preeronline only, and a ew would
choose access to both the printand online ormats. Looks likewe all have our preerred meth-ods o reading Bridges!
You spoke. We listened.We truly do not want to takethe plunge into the digitalworld and leave any o ourloyal readers behind. So,
weve reached what we hope isa compromise that delivers awin-win to all o us.
Beginning with the nextissue, we will continue to printand mail Bridges to subscrib-ers or whom we do not havean e-mail address. Those withe-mail addresses will receive
notication that the newslet-ter is live and available online.
We will not accept any newsubscriptions or print copies.
All digital subscribers will beable to print the newsletter ithey wish and save and retrievecopies easily.
There are numerous other
benets o providing youre-mail address. Increasingly,that is how we communicate.
We can ensure that you receiveinvitations to our events, lists
o resources and noticationso special projects, to name justa ew. You can unsubscribe at
any time (but we dont thinkyoull want to!). So, i youhavent provided us with youre-mail address, please take amoment to do so at www.stlou-ised.org/br/subscribe.
Daniel Davis
Going Digital?News from the Managing Editor
Bridges ONLINE
I yu avent prvided us wit
yur e-mail address, please take
a mment t d s at
www.stlouisfed.org/br/subscribe.
o supplemental material (e.g.,sidebars, primary documents)and multimedia (e.g., video,
audio, interactive illustrations)to bring stories to lie, and beinga bit more gentle on the earth.
One thing that will denitelynot change is our commitmentto meet the news and inorma-tion needs o our readers. Wehope that you will join us inthis move into a digital uture
and share the newsletter withyour riends and colleagues incommunity development andrelated elds.
We invite you to send usyour comments and sugges-tions on how we can continueto serve you most eectively inthe digital age.
Daniel Davis is managing edi-tor ofBridges and manager ofcommunity development at theFederal Reserve Bank of St. Louis.
Bridges will appear online
in the same amiliar ormatsubscribers are accustomedto; so, they will be able to readthrough the publication ontheir computers or tablets inthe same manner as they didwith the print version. And wewill continue to work to makethe newsletter available on a
wider range o mobile devices.The advantages o the onlineversion are many, includingexpanded coverage, easy link-ing to external web sites, use
L I N K I N G L E N D E R S A N D C O M M U N I T I E S#
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education may turn college intoan important goal rather than
just a dream, with a strategy orhow to overcome cost barriers.These dierences in outcomesare sustained throughout thecollege experience; or example,a student who has designatedschool savings rom $1 to $499is more than our and a haltimes more likely to graduaterom college than a child withno savings.3 (See Table 1.)
This is not to say that poli-cies that provide matches or
students savings and use
account with even $1 or lessincreases the odds that a childwill enroll in college.3 Obvi-ously, these small amounts omoney do not make a hugedierence in students actualcollege nancing, but they mayhelp students see themselvesaspeople who go to collegewhat is oten called a college-bound identity. Just openingan account and designating
some o that money or higher
College Financial Aidcontinued from Page 1
These small amounts o money
may help students see
themselves aspeople who go to
collegewhat is oten called acollege-bound identity.
TABLE 1
Correlation of Savings Accounts with Educational Outcome
Savings AccountEducational Outcome3
Enrll in Cllege Graduate rm Cllege
Scl-designated savings $500+ 72% 33%
Scl-designated savings $1-$499 65% 25%
Scl-designated savings
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FIGURE 1
Increase in Open Accounts, July 2010 through June 2012
Jul-Sep
2010
Oct-Dec
2010
Jan-Mar
2011
Apr-Jun
2011
Jul-Sep
2011
Oct-Dec
2011
Jan-Mar
2012
Apr-Jun
2012
12,000
10,000
8,000
6,000
4,000
2,000
0
N
umberofOpenAccounts
Total accounts opened: 10,144
and Revitalization (CSR) andEconomic Development.
CSR now spearheads thisinitiative, with 16 banks andcredit unions and more than100 community organizations,aith-based and governmentagencies in support. In August
2012, two years ater its launch,BOL celebrated the opening o10,144 new accounts, represent-ing those who were previouslyunbanked by choice or were inneed o a second chance. (SeeFigure 1.) O these accounts, 85percent have remained open.
In addition, BOL nancial
education provider partnersacross the community reportedthat last year 1,693 participantswere engaged in topics thatincluded budgeting and saving,nancial goal setting, buildingand maintaining good credit,predatory lending, and home-ownership. (See Figure 2.) For
a summary o BOLs accom-plishments, visit www.bankon-louisville.com.
Louisville Mayor GregFischer, a strong supporter
By Tina Lentz
Over the last ve years,Louisville has madetremendous strides
in its nancial empowermentintegration eorts throughthe citys ability to convene
stakeholders across all relevantsectors and the work beingdone to increase the nancialcapability o clients seekingsocial services. The Bank OnLouisville (BOL) initiative hasserved as an engine to drivemany o these eorts.
BOLs roots emerged in
response to the 2009 FDICNational Survey o Unbankedand Underbanked Households,which reported that Louisvillehad a combined 76,500 house-holds that ell into those twocategories. In 2010, ater nearly18 months o collaboration rompublic, private and nonprot
sectors, BOL was launchedthrough an innovative partner-ship between two LouisvilleMetro Government depart-mentsCommunity Services
o BOL, helped to establishstrategic goals or 2012-2013,which include:
35 percent increase inaccount openings,
100 percent increase innancial education partici-pation and
30 percent increase inpartners.BOLs impact in the commu-
nity reaches much urther; theinitiative has served as a cata-lyst or the receipt o a grantrom Living Cities, member-
ship in the Cities or FinancialEmpowerment (CFE) coalitionand a unique partnership withHelloWallet.
Living Cities Grant
In January 2012, due in largepart to the work being done by
BOL, Louisville was selected toreceive a $164,000 grant romLiving Cities to boost nancialempowerment strategies amongservice providers or the cityshomeless population. Theunds provide an opportunity
Bank On Louisille Helps Lead theWay to Financial Empowerment
2013 Sutterstck.cm / Tdd Taulman
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to work closely with more thana dozen social service providersto create a nancial empower-ment ramework and buildcapacity within the agencies toincrease access to empower-ment services and resources.
As the social services pro-vider or Metro Government,CSR assists thousands oLouisville residents each yearwith a variety o programs,including emergency nancialassistance, household incomesupports, energy aid and
nutrition programs, supportiveservices to amil ies who arehomeless or at-risk o beinghomeless, as well as educa-tion, training and employmentopportunities.
By championing the need orurther integration o asset-building strategies, CSR and
other partners hope to improvethe nancial stability o clientsthey serve; address the ever-increasing demand on publicresources; and create a modelthat can be replicated by other
social service providers to gen-erate a much broader system-wide change.
Cities for Financial
Empowerment Coalition
In April 2012, citing thework that the city has done inimproving the nancial healtho its low- to moderate-income(LMI) residents through BOLand other initiatives, Louis-ville was invited to join 11other municipalities thatcomprise the CFE coali-
tion. Launched in 2008 bythe mayors o New York City(Michael Bloomberg) and SanFrancisco (Gavin Newsom),the group brings togetherlocal governments interestedin advancing programs thatincrease nancial security orstruggling households.
Membership in this coali-tion o ocials rom Chicago;Hawaii County, Hawaii;Los Angeles; Miami; New-ark; New York; Providence,R.I.; San Antonio; San Fran-
cisco; Savannah, Ga.; andSeattle can greatly infuenceLouisvilles momentum as amunicipal leader in nancialempowerment.
HelloWallet Partnership
In December 2012 BOLembarked on an innovativepartnership with Hello-
Wallet, which generously
Bank On Louisville has
served as a catalyst or thereceipt o a grant rom Living
Cities, membership in the Cities
or Financial Empowerment
coalition and a unique
partnership with HelloWallet.
and share lessons learned tosupport other BOL partneragencies that will participatein the HelloWallet program inthe uture.
Financial Empowerment Summit
The Living Cities undingis also providing an opportu-nity or Louisvil le to hold aFinancial Empowerment Sum-
FIGURE 2
Financial Education Cumulative Participation Numbers
(across 10 partners)
1Q 2Q 3Q 4Q
0
200400
600
800
1,000
1,200
1,400
1,600
1,800
NumberofParticipants
2012 Goal = 500
2012 Actual = 1,693
Goal exceeded by 338%
donated 1,000 ree two-year subscriptions valuedat $90,000. This web- andmobile-based application helpsits subscribers/members bettermanage their nancial lie byhelping to grow savings, pay
down debt, plan or their utureand manage their nancialresponsibilities through person-alized, independent guidance.
Family Scholar House andCommunity Action Partner-shiptwo o BOLs commu-nity partners that work withLMI householdsare serving
as pilot agencies or Hello-Wallet. Caseworkers at theseorganizations will assist inintroducing the app to clients.They will also track progress
mit in March 2013 to enhancepublic, private and communitypartnerships with a ocus onnancial empowerment and agoal o developing a commu-nity-wide strategy.
For more inormation about
the BOL initiative, visit www.bankonlouisville.com. To learnmore about the Departmento Community Services andRevitalization and other relatedprograms and initiatives, visitwww.louisvilleky.gov/csr.
Tina Lentz is executive ad-
ministrator or LouisvilleMetro Community Services andRevitalization, and programadministrator or Bank OnLouisville.
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By Jeanne C. Marra
On the morning o Janu-ary 24, representativesrom St. Louis Com-
munity Credit Union (SLCCU),Carrollton Bank and KingdomHouse joined with St. Louis
community members at large tocelebrate the opening o a newmicro-branch o SLCCU andthe partnership that made thebranch possible.
The morning had all theanare you would expectrom a typical ribbon-cuttingceremonyballoons, ood and
speeches rom leadership. Butwhat stole the show were twoopening songs by smiling 4- and5-year-olds rom the Blue Roompreschool class at KingdomHouse, who represent the ami-lies and shared commitmentbehind the celebration itsel.
An Oasis in a FinancialInstitution Desert
The 310-square-oot micro-branch is located within theKingdom House social servicesacility just south o down-town St. Louis. The branch isSLCCUs 11th location.
The newest Kingdom
House branch speaks to ourunwavering commitment oproviding access and nancialempowerment to individualswho need our services, said
anchor in the low- to moderate-income (LMI) community,oering a variety o transor-mative community servicesthat annually help thousandsto achieve sel-suciencyand gain economic indepen-dence. Using a holistic service
approach with individuals andamilies, Kingdom House oerschild care, ood and cloth-ing assistance, educationalprograms, job training, youthand teen programs, and seniorcompanions. According toTom Hough, CEO o Carroll-ton Bank, it makes sense that
Kingdom House would leadthe charge to also oer nan-cial literacy training and basicbanking services, loans, low-eechecking and credit-building
St. Louis Community Credit Unions Newest BranchRepresents Innoatie Community PartnershipMicro-branch Becomes Oasis in St. Louis Financial Serices Desert
LEFT To RIGhT: Tim Butler (bard member, SLCCU), Jasmine Guest (member services representative, SLCCU), Sctt Walker (executive
directr, Kingdm huse), Tm hug (CEo, Carrlltn Bank), Gerald Brks (bard cairman, SLCCU), Angela Brks (bard member,
SLCCU) and Karen Kizeart (branc manager, SLCCU).
Patrick Adams, president andCEO o SLCCU. We lookorward to working with King-dom House clients and arearesidents to provide aordable,alternative banking optionsthat they deserve.
Scott Walker, executive
director o Kingdom House,said that the new micro-branchis especially valuable to thecommunity that it servesbecause it is situated in whatwas previously known as anancial institution desert.There is nothing close by,within walking distance or
even a bus ride away until yougo to the downtown area,Walker said.
For more than 110 years,Kingdom House has been an
programs through its partner-ship with SLCCU.
At Kingdom House, we havebeen working on developingpathways out o poverty or ourclients, and lie-skills classeshave been a part o that,
Walker said. The nancial
literacy classes that have beenoered here by CarrolltonBank and St. Louis Commu-nity Credit Union, and thenew branch, are a big piece oconnecting the dots among ourvarious services.
Ocially launched with asot opening in mid-December,
the micro-branch openedalmost 40 new accountswithin the rst ew weeks andextended $10,000 in small-dol-lar loans, such as the Freedom
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Loan, a payday loan alterna-tive; Credit Matters, a credit-builder loan; and Payday Saver,a payday consolidation loan.The branch is currently openthree days a weekMondays,
Wednesdays and Fridays.
Additional Partnership Initiatives
The partnership betweenSLCCU and Carrollton Bankormally began in May 2012,when they announced a 4-year,$800,000 collaborative agree-ment to increase lending, pro-
vide greater access to aordable
Carrollton and SLCCU havejoined together to open andoperate the CU Excel Center, anancial literacy and lie-skillseducation acility located inNorthwoods, an LMI suburb oSt. Louis. The center oers reeconsumer resources, nancialeducation classes and seminarsto the public, taught primar-ily by employees rom the twoorganizations, with help rompartner community groups.
Practicing what it preaches,Carrollton is also providing a
$500,000 loan und or small-
similar mission-mindednessand commitment to make asustainable dierence in theircommunities.
Gerald Brooks, chairman oSLCCU, described the initiativeat the ribbon-cutting ceremonyas a special partnership thatputs to bed the myth thatcredit unions and banks cantwork together.
By ocusing on what drawsthese institutions together andusing innovative strategies tocapitalize on organizational
assets, these three communitypartners have created an inno-vative model that has resultedin a win-win outcome or theirown organizations and theircommunities.
Brooks summed it all up:When a community thrives,we all thrive.
Jeanne C. Marra is a senior com-munity development specialistat the Federal Reserve Bank ofSt. Louis.
ToP: Prescl cildren at Kingdm huse were par t te celebratin te new cap-
ter in teir cmmunitys istry. BoTToM: Tm hug (let) rm Carrlltn Bank and
Patrick Adams (rigt) rm SLCCU rged a unique partnersip between bank and credit
unin, dedicated t make a dierence in teir cmmunities.
The newest Kingdom Housebranch speaks to our unwaveringcommitment o providing accessand fnancial empowerment toindividuals who need our services.Patrick Adams, president and CEO o SLCCU
services and expand nancialeducation to the local under-served and LMI population.SLCCU is a certied CDFI thathas more than 50,000 mem-bers and more than $220 mil-
lion in assets. Eighty percento its customers are consideredLMI. Carrollton Bank is a pri-vately held, employee-ownedbank with nine oces andmore than $1 billion in assets.
St. Louis Community CreditUnion lives to serve the under-served community, says Hough.Really, no one does that in ourindustry. We are very ortunateto work with them.
In addition to the new micro-branch at Kingdom House,
dollar loans, such as SLCCUsFreedom Loan and CreditMatters. In addition, Carroll-ton also oers two additionalloan programs not currentlyoered at the credit union
low-down-payment FHA homeloans, available at SLCCUoces, and commercial loansto area business owners.
Unlikely Partnership Results in
Win-Win
As a credit union and a bank,the two institutions operateunder dierent charters, whichwould normally become awedge between them workingtogether. What connects themas partners, they say, is their
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By Jeanne C. Marra
Bank-On Save-Up St.Louis, a community-based nancial educa-
tion and public awarenesscampaign, recently launchedin the St. Louis metro com-munity. The initiative has seta goal to open 20,000 newbank accounts or unbankedSt. Louis metro residents over
the next two years, and tomaintain or grow 80 percento those accounts.
The St. Louis eort is mod-eled ater Bank On initiativesin other cities and is designedto increase access to main-stream nancial products andservices among low- and mod-
erate-income (LMI) individuals.The Community Developmentdepartment at the FederalReserve Bank o St. Louis ispartnering with campaignorganizers by serving as theocial data collector and willreport its ndings quarterly tosponsors o the campaign, theSt. Louis Regional UnbankedTask Force (Task Force).
According to Alex Fen-
noy, director o communitydevelopment at MidwestBankCentre and co-chair othe eort, the initiative beganalmost three years ago, aterthe rst o two FDIC studiesrevealed the high number ounbanked households in theSt. Louis area. Ater learning
that 88,000 households7.6 percentin the St. Louismetro were unbanked, andthat St. Louis ranked rstin the nation with the high-est percentage o unbanked
Ar ican-Americans, a numbero nancial institutions andcommunity partners ormed
the Task Force. A subsequentstudy conducted by the FDICin 2011 and released last allechoed the need, revealingthat 111,000 St. Louis metrohouseholds9.7 percentdo not have bank accounts.
Ar ican-Americans comprise33.9 percent o those house-holds, making St. Louis thirdin the nation or unbanked
Ar ican-Americans.The Task Force ormed a
steering committee to study
the issue and began a ormalprocess two years ago to iden-tiy ways to address the needso the unbanked. This groupand each o its subcommitteesare comprised equally o bankand non-bank partnerswhatFennoy calls the yin and theyang. The process has beena true collective, collaborative,group eort, he said.
no-cost accounts, low mini-mal dollar amounts to openaccounts, ree online bankingservices, and saeguards tohelp customers avoid over-drat and other ees. Thecollaboration component withcommunity partners madethis eort a great t as well.
Today, Bank-On Save-UpSt. Louis is comprised o 18
Bank-On Sae-Up Kicks Off in St. Louis
We looked at everynational initiative thats outthere. We had to decide: Dowe create something our-selves, or is there alreadysomething that makes sense,explained Fennoy. Lisa Potts,case manager at Peoples
Community Action Corp.,and coordinator or the TaskForce, added, We broughtin a lot o experts who hadtouched not only Bank On[programs] but also otherasset-building initiatives tosee what was best or ourcommunity.
Both agree that the decisiono the steering committee toadopt a Bank On eort in St.Louis was ideal because oits promotion o low-cost or
WHAT QUALIFIESAS A BANK-ONSAvE-UP ACCOUNT?
opening depsit $100 r less
Minimum mntly balance
($0 - $100) Free nline banking
Free ATM/debit card
Lw- r n-cst cecking accunt
($10 r less accunt ee)
Lw- r n-cst savings accunt
Strongly encouraged:
Cnsider alternative rms ID
Prmte direct depsit
Encurage fnancial educatin
oer secnd-cance
cecking ptins
participating nancial institu-tions and more than 40 com-munity partners.
Fennoy said that enrollmentin a participating Bank-OnSave-Up account will helpLMI amilies save money byavoiding costly alternative
nancial providers, such ascheck-cashing companiesand payday lenders. Byusing bank accounts insteado these alternative sources,amilies can save hundredso dollars annuallyas muchas $1,200. He also stressedthe importance o the savingscomponent o the Bank-OnSave-Up eort.
In the meetings we heldwith both nancial institu-tions and nonprots, they
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CFED Releases 2013 Assets &Opportunity Scorecard
Despite strng signs ecnmic
recvery, millins Americans are
still living n te brink fnancial
disaster, accrding t CFEDs 2013
Assets & opprtunity Screcard.
ttp://assetsandpprtunity.rg/
screcard/
Philanthropy in the New Ageof Government Austerity
hw are pilantrpists w
pursue scial cange revising teir
strategies t align wit te current
ecnmic climate?
www.bridgespan.rg/
getattacment/447da17-6296-
4581-8daa-2dd359bb313d/
Pilantrpy-in-te-New-Age--Gvernment-Austerit.aspx
Best-Performing Cities 2012
Te Milken Institutewse missin
is t imprve lives arund te wrld
by advancing innvative ecnmic
and plicy slutins tat create
jbs, widen access t capital and
enance ealtas released
its reprt n last years best-
perrming cities. Tis index ranks
U.S. metrplitan areas by w well
tey are creating and sustaining
jbs and ecnmic grwt. ttp://
bestcities.milkeninstitute.rg/best-
perrming-cities-abut.tml
Census Bureaus AmericanCommunity Survey Estimates
Te U.S. Census Bureau recently
released estimates rm te Ameri-
can Cmmunity Survey r te cm-
bined years rm 2007 t 2011,
prviding te nly statistics dwn t
te neigbrd level n scl
enrllment, jbs, using and many
ter measures. www.census.gv/
newsrm/releases/arcives/
american_cmmunity_survey_acs/
cb12-228.tml
U.S. Economic Development
Administrations Triple Bottom
Line Tool
Te U.S. Ecnmic Develpment
Administratin as created an
nline tl tat can be used timprve design, decisin-making
and cmmunicatin abut invest-
ment alignment wit triple bttm
line (TBL) gals r scial, envirn-
mental and fnancial perrmance.
Te tl was develped wit
signifcant practitiner input and is
respnsive t a wide range cm-
munities. www.tbltl.rg
kept telling us that gettinga bank account wasnt thebe-all, end-all, Fennoy said.Thats why we wanted theSave-Up component, becauseyoure starting to build assets,and thats critical whenmoving rom the alternativenancial services into themainstream. Youve got tobuild assets, even i its $5 amonth. Start saving.
Financial institutions willpartner with community-based organizations to engage
in outreach activities andnancial education opportu-nities that campaign coor-dinators consider critical tothe success o the initiative.Classes and training sessionswill be available to partici-
outcomes, but also or itspotentia l socia l impact. Atthe Fed, we have worked withBank On initiatives in othercities and have learned thatthe empowerment that comeswith using mainstream nan-cial services has a widespreadand generational impact oncommunities. Research hasdocumented that those whouse bank accounts and learnto save are more likely tograduate high school, areless likely to be incarcerated
and will more likely pursuehigher education than thosewho do not. This is not just anancial issue; it has rami-cations in the community aswell. Im delighted that thiseort is being driven by the
RESOURCES
Research has documented thatthose who use bank accountsand learn to save are more likelyto graduate high school, are lesslikely to be incarcerated andwill more likely pursue highereducation than those who do not.
pants ree o charge andwill cover a variety o top-ics, including the benets omainstream banking, savingstips and opportunities, anddebt-management strategies.
St. Louis Fed CommunityDevelopment Ocer YvonneSparks considers the Bank-OnSave-Up initiative importantor the community not onlywith regard to economic
community, and that so manynancial institutions are tak-ing on this role.
For more inormation onBank-On Save-Up St. Louis,visit www.getbankednow.org.
Jeanne C. Marra is a senior com-munity development specialist atthe Federal Reserve Bank ofSt. Louis.
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Spanning the RegionThe region served by the Federal Reserve Bank of
St. Louis encompasses all of Arkansas and parts of Illinois,
Indiana, Kentucky, Mississippi, Missouri and Tennessee.1 Million Cups Launches
in St. Louis
1 Million Cups, a programoriginated in Kansas City,has expanded to St. Louis.Innovate St. Louis, throughits Inormat ion Technol-ogy Entrepreneur Network(ITEN), serves as theprogram organizer,
helping St. Louisentrepreneursconnect withone anotherover coee.For one houreach Wednes-day morning at thestudios o the local PBS
station, 1 Million Cups givestwo early-stage startups theopportunity to present theircompanies to a diverse audi-ence that includes mentors,advisers, researchers, build-ers, makers, and aspiring andexisting entrepreneurs. Inthe education-based orum,
each startup ounder pres-ents or six minutes andthen ields audience ques-tions or 20 minutes more.For more inormation, visitwww.1millioncups.com orollow @1MillionCups onTwitter.
The Need To Rebuild Household
Balance Sheets
The net worth o manyU.S. households was severelyimpacted by the inancial
crisis and ensuing recession.Severe declines in home val-ues and stock prices, togetherwith many job losses and
weak income growthamong those who
held on to theirjobs, exposedthe precari-ous debt-ladenbalance sheets
many amilies hadcreated.In the upcoming
annual report o the Federal
Reserve Bank o St. Louis,ind out which groups opeople lost the most wealthbecause o the downturn inthe economy, why its impor-tant or those households torebuild their balance sheetsand what the latest researchhas to say about the impact
o household inancial stabil-ity on the broader economy.Many o the amilieswith weak balancesheets going intothe crisis haveyet to recoverinancially, whileothers, who werebetter diversi-ied and had lessdebt, have beneitedrom rising stock pricesand low interest rates. Thus,
the economic recovery todate has been biurcatedamong households o vary ingbalance-sheet strength andremains weak overall.
To sign up or an e-mail
alert when the annual reportis published this spring, orto subscribe to the paperversion (U.S. addresses only),see ww w.stlouised.org/subscribe.
Historic Soulsville,
Tenn., To Receive
Access toBroadband
A new wire-less, broadbandnetwork is comingto help Soulsvillesmall-business ownersand residents create jobs andboost their economic oppor-
tunity. The Delta RegionalAuthority (DRA) is proceedingwith a new $250,000
investment, coor-dinated throughthe CommunityLIFT Corp., toestablish a Wi-Finetwork that will
allow residentsto work, learn and
ully utilize inorma-tion technology in their
daily lives.
This innovative projectwill have signicant businessdevelopment implicationsin the Soulsville communityby giving area businesses alarger capacity or innovation,
eciency and communication.The investment will also bringMemphis its rst high-speedwireless, broadband neigh-borhood network; leverage
an additional $157,000 inprivate investment
or the CommunityDigital Advantage
Program; andalign Soulsvillewith the State oTennessee reshor-
ing telecommuni-cation strategy.
U.S. Rep. SteveCohen, who represents Mem-phis/Shelby County, said, The
benets o broadband and itseciency have transormedhow we approach education,health care, public saety,homeland security, the arts,e-commerce and so manyother industries across ourcity, state and country. Thisnew investment in broadbandwill go a long way towardhelping Soulsville create
jobs, grow our economy andimprove our communitysquality o lie.
0L i n K i n g L E n D E R S a n D C O M M U n i T i E S
7/30/2019 Bridges - Winter 2012/2013
11/12
BRidgesBridges is a publication o the Commu-nity Development Oce o the FederalReserve Bank o St. Louis. It is intendedto inorm bankers, community develop-ment organizations, representatives o
state and local government agencies andothers in the Eighth District about currentissues and initiatives in community andeconomic development. The EighthDistrict includes the state o Arkansas andparts o Illinois, Indiana, Kentucky, Mis-sissippi, Missouri and Tennessee.
Yvonne SparksCommunity Development Ocerand Executive Editor314-444-8650
Daniel Davis
Community Development Managerand Managing Editor314-444-8308
Maureen SlatenSenior Editor314-444-8732
Community Development StaffSt. Louis: Matthew Ashby
314-444-8891Jeanne Marra314-444-6146Brandon Farber
314-444-7439Johanna Gruenewald314-444-8743
Memphis: Kathy Moore Cowan901-579-4103Teresa Cheeks Wilson901-579-4101
Little Rock: Drew Pack501-324-8268
Louisville: Lisa Locke502-568-9292Faith Weekly
502-568-9216
The views expressed in Bridges are notnecessarily those o the Federal ReserveBank o St. Louis or the Federal ReserveSystem. Material herein may be reprintedor abstracted as long as Bridges is credited.Please provide the editor with a copy oany reprinted articles.
Free subscriptions are available by calling314-444-8761, by e-mail [email protected] oronline at www.stlouised.org/br/subscribe.
CalendaR
aPRil
10-1118th Annual Rural Development
Conference: Achieving Sustainable
ProsperityCookeville, Tenn.
Spnsrs: USDA Rural Develpment,
Tennessee Valley Autrity, Tennessee
Tec University, Tennessee Department
Ecnmic and Cmmunity Develpment
ttps://epay.tntec.edu/C20205_ustres/
web/stre_main.jsp?SToREID=33
11
Exploring Innovation in CommunityDevelopment Audioconference: Case
Management: A Holistic Approach to
Asset BuildingAudioconference
Spnsr: Federal Reserve Bank St. Luis
www.stluised.rg/bsr/
EI_CDAudiCnerence
11-12Resilience and Rebuilding for Low-Income
Communities: Research to Inform Policy
and PracticeWashington, D.C.Spnsrs: Federal Reserve System
www.rbatlanta.rg/news/cnerences/
13resilience_rebuilding.cm
12The Intentional Entrepreneur
Memphis, Tenn.
Spnsr: SEEDCo and Kauman FASTRAC
ttp://seedc.afliate.asttrac.rg/
prgram-event-detail.aspx?
peid=Dyj8Yhr0GkuA-v2CRnw-uQ
16-18National Development Council 2013
AcademyWashington, D.C.
Spnsrs: Multiple
ttp://www.ndcacademy2013.rg/
177th Annual Financial Literacy and
Education SummitChicago
Spnsrs: Federal Reserve Bank
Cicag, Visa Inc.
www.practicalmneyskills.cm/
summit2013/register.pp#regrm
20-24The Council for Community and
Economic Research (C2ER) 53rd Annual
Conference & LMI Training Institute
Annual ForumNashville, Tenn.
Spnsrs: Multiple
ttp://www.c2er.rg/cnerence/2013
23Exploring Innovation in Community
Development Audioconference:
Neighborhood Revitalization
Audioconference
Spnsr: Federal Reserve Bank St. Luis
Cntact: Fait Weekly at
JUne
12-14Business Alliance for Local Living
Economies (BALLE)Buffalo, N.Y.
Spnsrs: Multiple
ttp://bealcalist.rg/2013-
balle-cnerence
17-18Opportunity Finance Network Midwest
Regional MeetingCincinnati, Ohio
ttp://www.pprtunityfnance.net/
newsletter/eb13.tm
20-27Money Smart WeekNationwide
Spnsrs: Multiple
www.mneysmartweek.rg
29-My 2Tennessee Basic Economic Development
CourseNashville, Tenn.
Spnsr: University Tennessee Instituter Public Service
ttps://cis.tennessee.edu/train/
prgramtraining/TNEDPT/Pages/
TBEDC.aspx
MaY
5-8AEO National Conference: Tilt Forward:
The Power of Microbusiness
St. Louis, Mo.Spnsrs: Multiple
www.micrenterprisewrks.rg
7-9Annies Project: Professional
Development Program for Educators
Serving Farm Women in the Southern
SARE RegionJackson, Miss.
Spnsrs: Multiple
ttp://www.ucs.iastate.edu/mnet/
annienatinal/me.tml
13-17Exploring Innovation WeekLittle Rock,
Ark.; Louisville, Ky.; Memphis, Tenn.;
St. Louis, Mo.
Spnsr: Federal Reserve Bank St. Luis
Cntact: Lisa Lcke at
online onlY
www.stlouisfed.org/
publications/br
In addition to the print version,each issue of Bridgesoffers
information that is exclusively
online. This content expands
on topics in the current issue
or a past issue. Online content
for the winter issue is:
8 From the 8th Podcast:
Louisvilles 55,000 Degrees
Housing Market Conditions,
December 2012 ReportCommunity Development
Outlook Survey, October
2012 Report
#O n T h E i n T E R n E T a T w w w . S T L O U i S f E D . O R g
7/30/2019 Bridges - Winter 2012/2013
12/12
PRSRT STD
U.S. PoSTage
paid
ST. LoUiS, Mo
PeRMiT No. 444
Have you
heaRdCDFI Fund Announces Nearly $18Million in Bank Enterprise Awards
Te U.S. Department te Treasurys
Cmmunity Develpment Financial Insti-
tutins Fund (CDFI Fund) as awarded
nearly $18 millin t 59 FDIC-insured
depsitry institutins r serving ec-
nmically distressed cmmunities acrss
te natin. Te awards are being made
trug te Bank Enterprise Award (BEA)
Prgram; awardees were selected ater a
cmpreensive review 71 applica-
tins received by te CDFI Fund rm
fnancial institutins acrss te natin
tat requested mre tan $88.5 millin
in unding. Te activities tat qualiy
tese institutins r BEA Prgram
awards ccur in census tracts were at
least 30 percent te ppulatin lives
at r belw te natinal pverty level
and were te unemplyment rate is 1.5
times abve te natinal average.
Cllectively, tese depsitry
institutins increased teir lans and
investments in distressed cmmuni-
ties by $383.3 millin; increased teir
lans, depsits and tecnical assistance
t Cmmunity Develpment Financial
Institutins (CDFIs) by $21.1 millin;
increased teir equity and equity-like
lans and grants t CDFIs by $258,000;
and increased te prvisin fnancial
services in distressed cmmunities by
$5.5 millin. Fr mre inrmatin,
including a list award recipients,
visit www.cdfund.gv/news_events/
CDFI-2012-45-CDFI_Fund_Annunces_
Nearly_$18_Millin_in_Bank_Enter-
prise_Awards.asp.
New Mortgage Protection RuleProtects Borrowers and Banks
In January, te Cnsumer Finan-
cial Prtectin Bureau (CFPB) issued
te ability-t-repay rule. It creates a
new lan categry called qualifed
mrtgages wit n interest-nly lans,
limited up-rnt ees and debt burdens
n mre tan 43 percent incme.
Cnsumer and using advcates ave
expressed cncern tat brrwers d
nt ave te ability t redress any
grievances n qualifed mrtgages in
te prime market, tereby seltering
banks. Furter details abut te rule are
rtcming. Fr mre inrmatin, see
www.cnsumerfnance.gv/regulatins/
ability-t-repay-and-qualifed-mrtgage-
standards-under-te-trut-in-lending-
act-regulatin-z/.
HUD Issues Notice of FundingAvailabil ity for SHOP Funds
Sel-elp hmewnersip opprtunity
Prgram (ShoP) unds are awarded t
natinal and reginal nnprft rganiza-
tins and cnsrtia t acilitate and
encurage innvative mewnersip
pprtunities r lw-incme persns
and amilies. Fr mre inrmatin,
including a prgram descriptin and
applicatin instructins, visit www.rural-
me.rg/strage/dcuments/sp13/
sp_2013_prgram_descriptin_and_
applicatin_instructins.pd.
Dollar General Literacy Foundation Youth Literacy Grants
Te Dllar General Li teracy Funda-
tin is accepting applicatins r its
Yut Literacy Grants, wic prvide
unding t scls, public libraries and
nnprfts wrking t elp students w
are belw grade level r aving difculty
reading. Grants up t $4,000 are
awarded t implement new r expand
existing literacy prgrams; purcase
new tecnlgy r equipment t sup-
prt literary initiatives; r purcase
bks, materials r stware r literacy
prgrams. Fr mre inrmatin, visit
www2.dllargeneral.cm/dgliteracy/
Pages/yut_grants.aspx.