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Finance Fund Presentation for the Ohio Leadership Team

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Finance Fund Presentation for the Ohio Leadership Team Powered By Docstoc
					Introduction to Finance Fund



              2010 Energy Assistance Program Training
Who we are
• Enabling progress, inspiring change:
   – We are a nonprofit organization serving low income people
     throughout the State of Ohio.
   – Finance Fund builds bridges between resources and the low-
     income community to improve the quality of life for people.
   – Finance Fund helps to transform emerging rural and urban
     communities into vibrant, diverse, economically healthy
     neighborhoods.


                                   2010 Energy Assistance Program Training
What we do
• We create partnerships with organizations that seek to produce:

       •   safe and affordable housing
       •   business development opportunities
       •   community facilities
       •   access to housing, jobs, child care, health care




                                       2010 Energy Assistance Program Training
How we do it
•       Consistent & flexible products:
    –      Grants for predevelopment activities including architects, engineers,
           and planning services
    –      Grants to supplement owner equity that can be used for construction,
           real estate, machinery, equipment and professional services
    –      Loans with flexible terms that can be used for real estate, machinery,
           equipment and operations
    –      Credit enhancements that make bank debt more attractive by
           lowering the interest rates which can be used for economic
           development, affordable housing and child care facilities

                                           2010 Energy Assistance Program Training
How we do it
•       Business counseling services:
    –      Assistance for securing additional funding
    –      On-site consultation
    –      Product-related training
    –      Assistance in networking on behalf of the client for private investment
    –      Funding application assistance
    –      Business planning advice
    –      Bank networking assistance



                                           2010 Energy Assistance Program Training
Cars for Jobs and Diplomas
          (By Car)



             2010 Energy Assistance Program Training
Program Launch
• Discussions began in summer 2008
• Program rollout - February 3, 2009
• 25 CAAs participating
• 90 deals
   – 35 participants enrolled
   – 18 participants have purchased cars
• Enrollment deadline - March 16, 2010



                                   2010 Energy Assistance Program Training
Overview
• The purpose of By Car is to provide qualifying low-income
  participants an opportunity to save for purchase of a vehicle
  enabling individuals to obtain or retain employment and/or
  education.
• The program serves as a financing component of local case
  management programs offered by community action agencies
  designated by the Ohio Department of Development’s, Office of
  Community Services.



                                   2010 Energy Assistance Program Training
Overview
By Car
• Savings program similar to an IDA
• Provides match dollars for purchase of a vehicle
• Maximum program funding is $4,000 (savings +
  match)
• Savings program offers two components:
     1) 2:1 match dollars
     2) Loan guarantee


                                     2010 Energy Assistance Program Training
Overview
By Car
• CAA’s administer the program
   – Service fee
• Demonstration program
   – limited funding
   – 90 deals in first round
   – 1st come - 1st served



                                 2010 Energy Assistance Program Training
Policies and Guidelines
Eligibility
• CAA
    • Conversations with Finance Fund
    • Planning Survey – staffing capacity, staffing skills, client base,
       recruitment methods, screening methods, implementation
       timeline, provision of financial literacy and consumer education
    • Executed Letter of Reservation with Finance Fund
• Participant
    • Basic needs assessment determined by case managers
    • Required to complete financial literacy and consumer education
    • Executed By Car Participant Agreement

                                      2010 Energy Assistance Program Training
Policies and Guidelines
By Car Program Parameters
•   By Car Savings & Match
     • Matching rate: 2:1 – each dollar saved in participant’s By Car account
       will be matched with $2 in By Car Reserve Account
     • By Car Savings plus Match cannot exceed $4,000
         • Match ceiling: $2,666
         • Savings maximum: $1,333

•   By Car Savings & Loan Guarantee
     • Match will be used to guarantee a loan for vehicle purchase
         • Guarantee maximum: $3,600
         • Minimum savings requirement: $400

                                          2010 Energy Assistance Program Training
Policies and Guidelines
Account Structure
•   By Car Account
     • Participant establishes savings account (“By Car Account”)
     • Participant makes monthly deposits
     • CAA controls By Car Account withdraws
     • Funds may be withdrawn for emergencies; any withdrawn
       funds will not be matched
     • Participant must continue to make monthly deposits to
       remain enrolled in program
     • Funds remaining in By Car Account after vehicle purchase
       may be transferred to a traditional account
     • By Car Account must be closed within 30 days of transfer

                                         2010 Energy Assistance Program Training
Policies and Guidelines
Account Structure

•   By Car Reserve Account
     • Finance Fund holds match funds in a By Car Reserve Account
     • Match funds accessed by CAA request




                                       2010 Energy Assistance Program Training
Deal Flow
Step 1 – Agency Enrollment
•   CAA
     • Contacts Finance Fund to discuss participation
     • Determines number of By Car Accounts to be reserved in program
     • Completes Letter of Reservation and required documents
     • Sends completed packet to Finance Fund
•   Finance Fund
     • Executes Letter of Reservation and submits approval documentation to
        CAA
     • Reserves match funds in By Car Reserve Account

                                        2010 Energy Assistance Program Training
Deal Flow
Step 2 – Participant Enrollment
•   CAA – Case Manager
     • Screens and identifies clients based on basic needs assessment
     • Completes intake process (CSBG Intake Form)
     • Establishes savings account and structure with local bank/credit union
     • Enrolls participant into program – completes participant agreement
     • Submits enrollment forms to Finance Fund
•   Finance Fund
     • Officially enrolls participant
     • Allocates funds to participant’s reserve account
     • Monitors savings activity with Case Manager
                                          2010 Energy Assistance Program Training
Deal Flow
Step 3 – Match Reserve Withdraw
•   Participant
     • Reaches end of savings period and identifies car for purchase
     • Notifies Case Manager
•   CAA – Case Manager
     • Assists client with car purchase and arranges payment with dealer
     • Completes Reserve Withdrawal Form and obtains supplemental
        documents
     • Withdraws savings from By Car Account
     • Submits request form and supplemental docs to Finance Fund

                                         2010 Energy Assistance Program Training
Deal Flow
Step 3 - Match Reserve Withdraw Cont’d
•   Finance Fund
     • Receives request forms and processes for payment
         • ACH Transfer (3 business days)
         • Check (7 business days)
     • Notifies Case Manager when transactions take place
•   CAA – Case Manager
     • Communicates with car vendor
     • Assists participant with vehicle purchase




                                        2010 Energy Assistance Program Training
Deal Flow
Step 3 - Loan Guarantee
•   Participant
     • Reaches end of savings period and identifies car for purchase
     • Notifies Case Manager
•   CAA – Case Manager
     • Assists client to obtain financing with local bank/credit union
     • Completes Guarantee Request Form and obtains supplemental docs
     • Submits request form and supplemental docs to Finance Fund
     • Withdraws savings from By Car Account for down payment on vehicle
     • Assists client with car purchase and arranges payment with dealer

                                       2010 Energy Assistance Program Training
Deal Flow
Step 3 - Loan Guarantee Cont’d
•   Finance Fund
     • Receives Guarantee Request Form
     • Contacts local bank to arrange for loan guarantee
     • Notifies Case Manager that guarantee is arranged
     • Processes service fee to CAA
     • Monitors loan activity




                                         2010 Energy Assistance Program Training
Why we do it
• Provide people with transportation where
  none currently exists.
• Assist people with job and/or education
  retainment or obtainment.
• Assist people who would not otherwise be
  able to get loans based on credit history.
• To help individuals or families in distress
  move their lives forward and become self
  sufficient.
                                  2010 Energy Assistance Program Training
                       Contact us
Tamra Hall, Program Officer ~ (614) 568-5052 ~ thall@financefund.org
       Ginny Payton, Program Assistant ~ (614) 364-7573 ~
                      gpayton@financefund.org

                      Finance Fund
              17 South High Street, Suite 900
               Columbus, Ohio 43215-3441
                   www.financefund.org
             (800) 959-2333 ~ (614) 221-1114
                   Fax: (614) 221-7493
                                    2010 Energy Assistance Program Training

				
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