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NESDCAP And NESDEC Highlights: NESDCAP/NESDEC December 2006 VITA Weatherization Works RALS Examined Know Your Score Pioneers in the State RHED Grant Awarded HPG Grant pg 1 pg 2 pg 2 pg 3 pg 4 pg 5 pg 6 pg 7 The friendship of those we serve is the foundation of our Progress. SBDC Upcoming Events: December 25 Office Closed January 1 Office Closed January 15 Office Closed [tÑÑç [ÉÄ|wtçá Volunteer Income Tax Assistance As the end of 2006 draws near, we begin to think about the inevitable tax season. NESDCAP introduced the Volunteer Income Tax Assistance (VITA) program to the list of aids for low income persons in our area last tax season. The Internal Revenue Service has set up and trained individuals to offer FREE tax help to people who can not afford a tax preparation fee. NESDCAP prepares the basic tax returns for taxpayers with low or limited incomes and a variety of special needs. We will prepare returns with child & dependent care credits, education credits, earned income credits (EIC), along with wages including unemployment and social security. The income guidelines are available at the NESDCAP office. There are no fees for tax preparation or electronic filing (e-filing). A stand alone new form the 1040-EZT is available for claiming the Telephone Excise Tax Refund (TETR). These refunds are generated by the repeal of Federal Excise Taxes on long distance calling. The refund period covers excise taxes paid from March 2003-August 2006. If you do not have your itemized statements, you may Vita continued page 2 Please send an email to nesdcap@nesdcap.org, if you would rather receive this newsletter electronically in color. They will be emailed to you in PDF format. It is also available on our website at www.nesdcap.org NESDCAP/NESDEC Page 2 Weatherization Works for our Community As the cold weather is upon us, most families across the country are turning up their thermostats to combat dropping temperatures. For low-i nco me f ami l ies, however, cranking up the heat is not always an option. These families pay 16% or more of their annual incomes for energy compared with only 5% for other non low-income families. Unable to pay gaping balances or hefty reconnection fees, some families are considering how they will survive this winter without heat. The Department of Energy’s W e at h er i z at i o n A s s i s t a n ce Program (WAP) may be able to help. This program provides permanent solutions to reduce the energy burden on low-income families by installing costeffective, energy efficiency materials and services. Program Impact Since the inception of the program in 1976, more than 5.6 million homes have been weatherized across the nation. In the 17 county service area of the Northeast South Dakota Community Action Program (NESDCAP) has historically weatherized over 4,880 low income homes. In fiscal year 2006 NESDCAP weatherized 262 low income homes. In fiscal year 2007, NESDCAP expects to weatherize over 200 low income homes in northeast South Dakota. These households will save an average of 25% annually on their energy bills after the weatherization work is completed. The dollar savings alone makes a big difference for these families. In addition, weatherization makes the home warmer/ cooler and safer. Technical Approach Weatherization technicians use computerized energy audits and advanced diagnostic technologies, such as blower doors and duct blasters, to determine the most cost-effective measures for each home. They also assess related health and safety conditions. Agency’s technicians check furnaces and appliances for carbon mo n o x i d e . L as t y e ar NESDCAP replaced 83 furnaces with higher efficiency. This measure made a life-or death difference for these 83 low-income families in these homes. VITA Continued claim the standard amounts based on household size (# of exemptions). For example: 1=$30; 2= $40; 3=$50; and 4 or more=$60. Every taxpayer who paid long distance whether you have a telephone or not is eligible for this refund, you do not have to prove anything. This means that even if you do not have a tax liability, you may still receive the refund. Please keep this in mind and inform others about this. In preparation for your tax filing; please remember to keep your W2’s, 1099’s and other related papers together to make it easier when the time arrives. You should also bring your prior year’s tax return (if available), your social security card and your picture ID with you. NESDCAP is pleased to announce that we will once again be offering the VITA program for the 2006 tax filing season. Lacey Bessler and Deb Kuecker will be serving as coordinators for the program. Each worked with the program last year and are training for this year. We will be offering this for the entire NESDCAP 17 county service area and will travel to your community. Please pass this information on to those you know who may be in need of our service. You may call Lacey at the NESDCAP office at 698-7654 ext. 21 or Deb Kuecker at 345-4328 for more information or for appointments. Appointments will begin after January 15th. RALS Examined RALS (refund anticipation loans) are extremely high-cost bank loans, secured by the taxpayer’s expected tax refund, that last about 7-14 days until the actual IRS refund repays the loan. The fact that the loans last for such a short period of time shows how unnecessary most RALs are: Taxpayers can get their refunds in two weeks or less even without the costly loan. NESDCAP Counsels Over 650 in FY2006 During the last fiscal year NESDCAP provided housing counseling to over 650 clients in the 17 county service area. NESDCAP provides free housing counseling in the following counseling areas: Homebuyer Education, Pre-purchase homebuyer counseling; Resolving or Preventing Mortgage Delinquency; Home Maintenance & Financial Management for Homeowners; Rental Housing Counseling and Counseling Services for the Homeless. 2006 Issue #4 Page 3 KNOW YOUR SCORE by Kelly Weaver, Small Business Development Center Regional Director No matter what your form of business ownership, your personal credit worthiness is always going to be very important in your business dealings. Your credit score carries a higher importance every year as more agencies use this number in their sales processes. Not only does it affect your ability to get a loan (personal or business) but it can also affect your ability to rent office space, lease equipment, purchase a cell phone plan, or get affordable insurance. Before you consider starting a business or expanding your existing business, you will want to review your credit report and your credit score. Everyone is entitled to one free credit report per year from each of the three national credit reporting agencies. You can obtain your free credit report at www.annualcreditreport.com or by calling 1-877-322-8228. Your credit report includes information such as current and past debt obligations, account status (current, delinquent), payment history, outstanding balances, and public record filings (liens, judgments, bankruptcy, etc.). You will want to look it over in detail to make sure that all the information is correct. Incorrect information could negatively impact your credit rating and can take several months to get corrected. Your credit score is a number which reflects the information in the credit file. The score estimates the likelihood that you will make payments on time in the future and, therefore, represents the level of risk to the lender. Generally, the higher your score, the less risky the loan. The credit score scale runs from 300 to 850 with a majority of people having scores between 600 and 800. Generally, a score in the mid 700’s or higher is considered excellent and under 600 is poor, but each business or lender will have its own policy on how credit scores are used. You can purchase your credit score at the above website or at Fair Isaac Corp. (www.myfico.com), the company that created one of the most commonly used credit scoring formulas. If your credit history needs some repair, there are no quick fixes. Don’t be fooled by those who say they can erase your bad credit history. To fix your credit, you need to clear up old debts and work on building a positive payment history (no late payments!). To avoid credit repair scams, write to the Federal Trade Commission, Sixth and Pennsylvania Avenues, N.W., Washington, D.C. 20004 and request a brochure titled "Credit Repair: Self Help May Be Best" or visit www.ftc.gov. The two biggest factors that affect your credit score is the amount of your debt and your payment history. Other factors include the length of your credit history, the types of credit used, and recently opened accounts. For further explanation on credit scoring and tips for improving your score, the following websites are great resources: • Fair Isaac Corporation - http:// www.myfico.com/CreditEducation/ • BankRate.com - http:// www.bankrate.co m/brm/news/creditscoring/20040128a1.asp Don’t wait till you need the loan to check out your credit report and credit score. Be prepared in advanced and do all you can to make your score the best you can. It may be the biggest asset you have when requesting a loan for your business. Are You in Need of a Computer? Low Cost Computers for Sale! Available in the NESDCAP and NESDEC service areas. Refurbished computers for as low as $287. Includes a 17” monitor, Pentium III processor, keyboard, mouse, surge protector, speakers, and a new HP color Inkjet Printer. Price includes delivery and installation. Prices subject to change For more information contact NESDCAP at 605-698-7654 ext. 25 Or toll free at 1-888-202-4855 ext 25. EQUAL OPPORTUNITY ORGANIZATION NESDCAP Receives Wells Fargo Foundation Grant for Housing Counseling NESDCAP recently received $5,000 from Wells Fargo Foundation on behalf of Wells Fargo Home Mortgage. These funds are for homeownership education and counseling services in Northeast South Dakota. NESDCAP/NESDEC Page 4 NESDCAP and NESDEC: Pioneers in the State The Northeast South Dakota Community Action Program (NESDCAP) has served as a pioneer throughout South Dakota in many programs it has developed and administered. The following is a listing of some of firsts that NESDCAP has achieved in it’s 40 year history: • First and only SD agency to receive funding through One Economy to administer a computer program and develop a multi-lingual website www.beehivenesd.org. Past Senator Daschle recommended our agency to implement and administer this program and was successful in earmarking federal Small Business Administration funds. • First and only SD agency to administer a Digital Connector curriculum for youth; • Only SD CAP to be a certified Homeownership Education Resource Organization (HERO); • First and only SD agency to be a partner with Rural Local Initiatives Support Corporation (LISC) to build housing and economic development capacity; • Only Community Action Program in SD to host a Small Business Development Center. • First and only SD agency to implement a Ways-to-Work nationally recognized loan program financed through the Alliance for Children and Families; • First agency in SD and currently the only SD Community Action Program to administer the nationally recognized Individual Development Account (IDA) – matched savings accounts. This is currently being looked at as a statewide initiative through the Bush Foundation. NESDCAP’s history and experience in this area weighed heavily on the Bush Foundation when they recently had an on-sight review for possible funding. • Only Community Action Program in SD to administer subsidized USDA Rural Development apartments. • First in SD to receive Federal Home Loan Bank assistance for housing rehabilitation. • First and only Community Action Agency in SD currently receiving Rural Development Housing Preservation Grant funding for housing rehabilitation; • First SD Community Action Agency to administer the Volunteer Income Tax Assistance (VITA); • First agency in SD and only Community Action to partner with Rural Development on the Housing Loan Partnership Program to draw additional funds to SD from the National level; • Planned, applied, received and implemented one of 33 nationally funded USDA Enterprise Community grants of $2.95 million dollars; • Only SD CAP to administer a down payment/closing cost program. • First agency in SD to implement a loan program for community development corporations to develop affordable housing. • Only SD CAP to be a certified HUD Housing Counseling Entity. • First Community Action Program in SD to market the Governor’s House. • First Community Action Program in SD to receive designation as a Community Housing Development Organization (CHDO) which resulted in the HOME housing rehab funding program. Pioneer’s Continued page 5 Apartments for Rent 1 and 2 Bedroom Apartments in Eden Doland Ipswich Milbank Pierpont Tulare Sisseton Veblen Wilmot Milbank Apartments, LLC, Milbank, SD Doland Development, Doland, SD Income qualified tenants pay no more than 30% of adjusted gross income. Please contact NESDCAP at 605-698-7654 ext 28 or toll free at 1-888-202-4855. Inquire about rent incentives. EQUAL HOUSING OPPORTUNITY 2006 Issue #4 Page 5 Pioneer’s Continued NESDCAP’s sister corporation, the Northeast South Dakota Economic Corporation has been a pioneer in the field of economic development through the following programs: • First Small Business Administration (SBA) Microloan borrower in South Dakota; • First agency in the United States to borrow from Rural Electric Administration Rural Development Loan Fund for re-lending purposes; • First and only South Dakota agency to receive business loan funds through the Rural Local Initiatives Support Corporation (LISC); • First South Dakota agency to borrow $2 million from the USDA Rural Development Intermediary Relending Program in one transaction; • Only SD agency to apply and be approved for significant amounts of Office of Community Services, Economic Development Discretionary grants for business development purposes; • First South Dakota agency to get a significant economic development grant from the Northwest Area Foundation; • Helped form Dakota America’s LLC to secure $50 million in New Markets Tax Credits for South Dakota and North Dakota. • First agency in South Dakota to become a certified Community Development Financial Institution (CDFI) (1996) and receive funding from the CDFI Fund Core Component. NESDEC receives Calvert Award Calvert Foundation. NESDEC has been a member of the Calvert Foundation Portfolio since it started in 1995. These funds have been used to finance local businesses throughout NESDEC’s service area. The Calvert Foundation is based in Bethesda, MD. They currently lend to more than 150 of the top community loan funds, microfinance institutions, affordable housing developers and social enterprises around the world. Together we’re working to build strong, healthy communities through these investments. Pictured are: David Gleason; Board Member, Lori Finnesand, Executive Director; and Craig Rau, Board Member that attended the Opportunity Finance Network Conference in Washington , DC. NESDEC was recognized November 1st at a separate meeting of all Calvert Foundation members in Washington, DC for over 10 years of partnership with the NESDCAP Awarded $300,000 HUD Grant The US Department of Housing and Urban Development has awarded the Northeast South Dakota Community Action Program (NESDCAP) a $300,000 grant under the Rural Housing and Economic Development (RHED) Program. NESDCAP’s mission is to be responsive to the needs of low income residents and serve as an advocate and vehicle for commu nity i nteres ts and concerns in the geographic area. NESDCAP will use the RHED funds to provide assistance through the housing loan fund for at least 17 individuals/families at an average of $15,000 per loan. Housing counseling services, training in the area of financial management will also be funded through RHED funds. The proposed leveraging amount is $667,700. NESDCAP/NESDEC is an Equal Opportunity Lender, Provider, and Employer. “USDA is an equal opportunity provider, employer, and lender”. To file a complaint of discrimination, write USDA, Director, Office of Civil Rights, 1400 Independence Avenue, SW, Washington, DC 20250-9410, or call (800) 795-3272 (voice) or (202) 720-6382 (TDD). NESDCAP/NESDEC Page 6 USDA RURAL DEVELOPMENT AWARDS HOUSING PRESERVATION GRANT TO NESDCAP Funds Will Be Used To Repair Single Family Homes Tim B. Potts, Acting State Director for USDA Rural Development in South Dakota, today presented the Northeast South Dakota Community Action Program (NESDCAP) a ceremonial check representing USDA Rural Development housing preservation grant (HPG) program funds of $29,561. The funding will be used primarily to offset the cost of labor and material expenses for roof repair and heating systems to very low income families. Potts said, “NESDCAP continues to distinguish themselves in housing preservation work and I’m pleased we are able to support their work with this grant. This year, NESDCAP celebrates sixteen years with the operation of the housing preservation grant program and it continues to serve a 17-county geographic area.” This grant will be specifically used for eligible homeowners completing essential repairs in Beadle, Brown, Campbell, Day, Edmunds, Faulk, Hand, Hughes, Hyde, McPherson, Marshall, Potter, Roberts, Spink, Stanley, Sully, and Walworth (excluding homes within the city limits of Aberdeen, Huron and Pierre). “Rural Development is a primary leader for housing and community development in South Dakota. NESDCAP is honored to be a part of this long-term housing preservation grant partnership and ongoing support from Rural Development. Through the partnership, NESDCAP continues to assist homeowners with needed repairs in our service area. Many of the services NESDCAP provides would not be possible without the leadership and quality programs that Rural Development provides in our state.” said Marcia Erickson, Executive Director of Northeast South Dakota Community Action Program. Those pictured in the photo above include from left to right: Jack Swanson – Board Member of NESDCAP, Marcia Erickson – Executive Director of NESDCAP, Judy Vrchota – Senator John Thune’s Staff, Sharon Stroschein – Senator Tim Johnson’s Staff, Maeve King – Congresswoman Stephanie Herseth’s Staff, Rural Development Area Director Bruce Jones, Lori Moen – Housing Director of NESDCAP, Rural Development Acting State Director -Tim B. Potts, and Rural Development Manager—Janell Telin. Rural LISC Annual Seminar The Local Initiatives Support Corporation (LISC) will hold their 2007 annual seminar in South Dakota. Most of the training will be held in Sioux Falls due to the need for a larger amount of accommodation space and airline availability. The groups will tour and spend some time at our local businesses that NESDEC has financed. The seminar is scheduled for June 5-June 8, 2007. Need Home Repairs? Wells Fargo Bank, N.A. and NESDCAP partnered and were awarded a $337,500 Affordable Housing Program grant from the Federal Home Loan Bank of Des Moines, Iowa. The funds provide home repairs such as shingles, plumbing, wiring, among other repairs to 75 income eligible owner-occupied homes. Homes are individually evaluated by NESDCAP Auditors for feasibility. Eligible applicants are provided services on a first-come, firstserved basis. Call today to find out if you qualify. For more information on any NESDCAP/NESDEC programs, you may contact NESDCAP by FAX at (605) 698-3038; email at nesdcap@nesdcap.org; phone at (605) 698-7654 or toll free at 1-888-202-4855. 2006 Issue #4 Page 7 South Dakota Small Business Development Center honors State Star at the Association of Small Business Development Centers Annual Conference in Houston, Texas Houston, Texas -- The South Dakota S m a l l Business Development of South D a k o t a announces that Carla Benson has been named their State Star at the Annual Conference of Small Business Development Centers in Houston, Texas. The State Star is awarded to counselors that show exemplary dedication to serving small businesses and are recognized as strong contributors to their programs. “I would like to congratulate Carla in receiving this prestigious award and thank her and the local sponsor, Northeast South Dakota Community Action Program (NESDCAP), for their support of the Small Business Development Center in the northeast counties of South Dakota”, said John Hemmingstad, State Director Small Business Development Centers. At the conference, Carla also received the ASBDC Distinguished Service Award “In Recognition and Grateful Appreciation of Her Distinguished Volunteer Service to the Small Business Owners of the U.S. Gulf Coast in the Aftermath of Hurricane Katrina”. Don’t forget to check The Beehive at www.beehivenesd.org and the new website of NESDCAP and NESDEC at www.nesdcap.org NESDCAP Board of Directors Reigning over NESDCAP are board members (front row) Jack Swanson; Toby Morris; Laura Lentsch; Jody Zueger; Sheila Roeber; (middle row) Richard Waltman; Noel Belcher; Duane Majeres; Larry Mattke; Sherry Baloun; (back row) Ed Miller; Steve Roseland; Delmar Metzger; Tom Farber; Deb Kuecker; Delvin Worth and Marvin Bury. NESDEC Board of Directors Area A David Heitmann, Britton Colleen Cordell, Marvin Kenny Buck, Peever Daniel Menking, Webster David Gleason, Claire City NESDCAP Board of Directors Area B Wayne Board, Doland Craig Johnson, Redfield Randy Gruenwald, Clark JoAnn Schaefers, Orient Rod Domke, Highmore Area C Roger Schipke, Bowdle Bob Heintzman, Aberdeen Terry Flamboe, Aberdeen Judy Steen, Ipswich Craig Rau, Java Area A Marvin Bury, Webster Laura Lentsch, Veblen Deb Kuecker, Webster Vern Donnell, Sisseton Tom Farber, Britton Larry Mattke, Huron Area B NESDCAP/NESDEC OFFICES 414 3rd Ave E Sisseton, SD 57262 Phone (605) 698-7654 Fax (605) 698-3038 916 12th St S Aberdeen, SD 57401 Phone (605) 226-0326 Fax (605) 226-0326 403 US Hwy 281 Tulare, SD 57476 Phone (605) 596-4360 Fax (605) 596-4399 Steve Roseland, Seneca Duane R. Majeres, Huron Sherry Baloun, Redfield Sheila Roeber, Redfield Delvin Worth, Gettysburg Toby Morris, Pierre Area C Ed Miller, Ipswich Richard Waltman, Leola Noel Belcher, Bowdle Delmar Metzger, Eureka Jack Swanson, Ipswich Jody Zueger, Aberdeen Small Business Development Center 416 Production Street North Aberdeen, SD 57401 Phone (605) 626-2565 Fax (605) 626-2667 NESDCAP NESDEC 414 3rd Ave. E. Sisseton, SD 57262 Corrections? Change the label and mail back to us or email us at nesdcap@nesdcap.org and we’ll make it right. Misspelled name Please email next newsletter Duplicate copy Remove from mailing list Other