Community Affairs:
Article Archive > Michigan

Small Loans, Big Returns
Ways to Work (WtW) is a nonprofit, community development financial institution that helps lower-income people. WtW is designed to help borrowers attain financial independence and advance economically by having money to purchase dependable used cars to get to work or school. Since 1996, WtW has originated nearly 12,000 loans for more than $31 million and the average auto loan amounts to an average $3,400. Results of a 2006 WtW evaluation indicate that borrowers reported an average increase of 41 percent in their take-home pay. In addition, 67 percent of WtW borrowers report that they have used conventional financial services subsequent to receiving their WtW loans.

Headquartered in Milwaukee, WtW makes its loans from 43 offices in 21 states: California, Delaware, Florida, Hawaii, Illinois, Indiana, Louisiana, Maryland, Michigan, Minnesota, Missouri, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Dakota, Texas, Virginia, Washington, and Wisconsin.

WtW offices are located in social service agencies affiliated with the Alliance of Children and Families (ACF). ACF agencies screen and provide financial education to borrowers and service the loans. WtW local offices provide financial education to more than three persons for every individual who receives a loan. Investors in WtW include several national foundations, the Community Development Financial Institution Fund of the U.S. Treasury Department, local United Way offices, and financial institutions. Banks can be involved by investing in the national WtW loan fund, by referring to local WtW offices prospective borrowers who do not meet conventional credit criteria, by participating in local WtW loan committees, and by providing grants and in-kind donations to WtW.

For more information, contact President Jeff Faulkner at (414) 359-1448 ext. 2, e-mail him, or visit his Web site.
[Community Developments Investments, Fall 2008]

Investing in the Michigan Upper Peninsula
Northern Initiatives (NI), a community development financial institution, in the Michigan Upper Peninsula, believes that healthy community development is a byproduct of stable and growing businesses. Since 1994 it has provided its customers with information and financial services that support entrepreneurs and enhances business competition. NI provides business consulting services, entrepreneurial education, and business loans. Its business loans are targeted to small entrepreneurs that would not qualify for traditional bank loans. To this end, NI is in the process of further capitalizing its business loan initiatives by offering retail securities beginning in October 2006. Investors can select their rates and terms of this structured investment. Previous investments have had rates up to 3 percent and for three, seven or ten years. The Calvert Fund, a socially responsible investment firm, will administer and track the securities. For further information, please contact Dennis West, CEO, (906) 226-1671 or dwest@niupnorth.org.
[Published in News from the Districts, Community Developments, Spring-2007]

Mexicantown Community Development Corporation (MCDC)
MCDC of Detroit is on the verge of completing a unique cultural destination. MCDC is working to establish dozens of new restaurants and small businesses to attract tourists and create approximately 195 new jobs. The "Mexicantown International Welcome Center and Mercado" is located in the heart of this Detroit community's commercial strip and will serve as a gateway from Canada into Detroit. The center will provide information and facilities for travelers crossing the border from Canada and will serve as a venue for artistic performances and art exhibits. It will be a catalyst for small business development. One million people are expected to visit the $14 million center annually. MCDC is seeking $825,000 in contributions to meet the capital campaign goal to complete the Center. Capital contributions may be considered for CRA Investment Test credit for banks servicing the Detroit market.

Contact: Maria Elena Rodriguez, (313) 967-9898, www.mexicantown.org.
[Published in News from the Districts, Community Developments Investments, Winter 2004/2005]

Entrepreneurs Access Vital Funding in Lansing
Did you know that micro-enterprises account for 15.8 percent of all employment in Michigan-an estimated total of 864,000 people? The Lansing Community Micro-Enterprise Fund (LCMF) offers a revolving loan fund to entrepreneurs that are unable to qualify for traditional bank loans. Loans range from $500 to $10,000, and 98 percent of the recipients have been minority-owned businesses. LCMF provides technical assistance, one-on-one, and also offers an entrepreneurship course. To qualify for a loan through the revolving loan fund, applicants must have completed a formal business plan, meet income eligibility guidelines, have a business that will benefit a low- or moderate-income neighborhood, and have no unsettled judgments or collections. LCMF also works closely with the local Small Business Administration (SBA) office to make SBA 504 loans and CommunityExpress loans. LCMF is seeking additional financial institutions to invest in its revolving loan fund, through below market rate, low interest rate loans, as well as lenders to refer entrepreneurs for SBA 504 loans.

Contact: Denise Peek, (517) 485-4446, lancomme@tir.com.
[Published in News from the Districts, Community Developments, Fall 2004]

Cooperative Financing in the Upper Midwest
Northcountry Cooperative Development Fund (NCDF) is a for-profit, cooperatively owned loan fund that provides financing, training and expertise to small producer, consumer, affordable-housing, worker and land cooperatives in eleven states in the upper Midwest. NCDF today has more than $8 million in assets, has made hundreds of loans to cooperatives since its founding in 1978 and has contained losses since 1978 to 0.27 percent of dollars loaned. Investors in NCDF include banks, cooperatives, religious orders, foundations and others. Certified by the Community Development Financial Institution (CDFI) Fund as a CDFI and as a community development entity, NCDF also has funding from the U.S. Department of Agriculture to help develop and finance rural housing cooperatives, and NCDF last year established a community development credit union that helps members of cooperatives finance their membership shares. Banks are involved with NCDF as co-lenders, as investors and on the board of directors.

For more information, contact Margaret Lund at (612) 331-9103 or at margaret@ncdf.org. NCDF's web site is www.ncdf.org.
[Published in News from the Districts, Community Developments, Summer 2004]

Lending Improves Quality of Life
Great Lakes Rural Capital Assistance Program (GLRCAP) is a non-profit firm helping small communities in Illinois, Indiana, Kentucky, Michigan, Ohio, West Virginia and Wisconsin install and improve drinking water, wastewater and solid waste infrastructure and management systems serving lower-income populations. Banks can provide construction financing and long-term loans for these projects. GLRCAP, which works through local community action agencies, recently won a $700,000 grant to assist local communities with planning for affordable housing and economic development. Banks can provide loans for projects that GLRCAP helps plan.

For more information, contact Debra Martin at (800) 775-9767 or dcmartin@wsos.org.
[Published in News from the Districts, Community Developments, Spring 2003]

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