#CDFI

[fluxsolutions]

https://fluxsolutions.co/cdfi-solution/

CDFI (Community Development Financial Institution) Solutions are the strategies and tools used by CDFIs to promote economic growth, social inclusion, and access to financial services in underserved communities. These organizations are unique in that they concentrate on assisting low-income, minority, or rural communities where traditional financial services are either unavailable or limited.

[latinolibre]

🎙#92 | 🆕 ¡UNA NUEVA TEMPORADA DE LATINO LIBRE USA! JUAN MESA 👨🏻🇨🇴: Juan Meza, colombiano, periodista, actual gerente de comunicaciones comunitarias de la organización Mission Economic Developement Agency (MEDA), situada en San Francisco, dedicada a programas de desarrollo de negocios, una institución financiera comunitaria, (CDFI), donde dan acceso a capital, a inmigrantes que a través de bancos tradicionales no podrían tener acceso a ese capital, para poder emprender su negocio. 𝗘𝗦𝗧𝗘 𝗘𝗣𝗜𝗦𝗢𝗗𝗜𝗢 👉 https://www.hispanicsolutionsgroup.com/episodio-nuevo/ep-92-juan-mesa-porque-la-comunidad-latina-viene-a-este-pais-a-trabajar-trabaja-mucho-trabaja-muy-duro-y-no-tiene-acceso-a-los-recursos-que-tienen-las-personas-con-documentos/

[invisibleicewands]

Actor and debt campaigner Michael Sheen has joined calls for the government to pass legislation to help tackle the crisis of unaffordable credit and problem debt in the UK. In 2022- 2023, more than 9 million were declined for credit, with millions relying on pay-day-lenders and buy-now-pay-later schemes with high interest rates. At its worst, lack of access to affordable credit means hundreds of thousands of people find themselves turning to loan sharks, while viable businesses remain stuck, unable to develop and create jobs. Campaigners are calling for a Fair Banking Act to help ensure that everyone can access essential financial services and support. 

Speaking at an event in Parliament on Monday, Sheen said:

“Anyone can find themselves in a place where they need credit to make ends meet or to get through a difficult time. The lack of affordable credit for people on lower-incomes is harming individuals and families, but also businesses and communities. Whole regions are seeing their growth held back. We can’t keep waiting and hoping that things will get better. We need something to change now. The Fair Banking Act could be the thing which really makes the difference”.  

The event in parliament was organised by the All Party Parliamentary Group on Fair Banking, alongside the Fair Banking for All Campaign – a group including credit unions, Community Development Finance Institutions (CDFIs), fintechs, charities and policy experts who are calling for a Fair Banking Act to help increase access to affordable credit. MPs, peers and financial regulators were among the attendees. 

Lloyd Hatton MP, chair of the APPG, said:

“We need a Fair Banking Act to help increase affordable lending in every corner of the country, ensure small businesses have access to the financial support they need, and guarantee that nobody is financially excluded by the mainstream banks. Only then will we deliver sustained economic growth across the whole of the UK.”

Before the election, Labour announced that financial inclusion would be a priority for them in government, with plans being developed for a comprehensive national Financial Inclusion Strategy. The Fair Banking for All Campaign is calling for a Fair Banking Act to be a central pillar of this strategy, to help grow the responsible finance sector. The idea is based on a successful example from the US, where similar legislation has successfully increased access to financial services and support for people on low-incomes and from marginalised communities. 

As well as leading mainstream banks to improve their own provision of affordable credit for underserved communities, the proposed legislation would also incentivise partnerships between high-street banks and institutions such as credit unions and CDFIs, which are often best placed to provide tailored services that meet the needs of individuals and small businesses who have been turned down by larger institutions. 

Recently published research from the Fair Banking for All Campaign estimated that a Fair Banking Act in the UK could increase fair and affordable lending to individuals by £2bn a year – equivalent to the total amount owed to loan sharks. This would help to pull the rug out from under the illegal lending market, by providing people with a safe and affordable alternative when they’re in urgent need. Additional support to small businesses could create or maintain just under 10,000 jobs over five years, including in some of the most economically deprived parts of the country – where small businesses currently find it hardest to get loans from high street banks.

Robert Kelly, chief executive of the Association of British Credit Unions Ltd, was another of the speakers at the event. He said: 

“We need more humanity in our banking system. At a time when more and more people need access to affordable credit, their options are becoming more and more limited. People are being turned down by high-street banks because of their income level or credit score, and so they’re turning to high-cost credit or illegal lending. Credit unions give them an alternative. The sector continues to serve communities and employers across the country at record levels through the provision of ethical and responsible products and services. There’s so much demand out there for this kind of alternative – but we need a Fair Banking Act so we can grow to meet that demand, and help millions more people”

Theodora Hadjimichael, chief executive of Responsible Finance which represents CDFIs in the UK, said:

“Community Development Finance Institutions (CDFIs) invest into underserved places and people, unlocking potential for businesses, social enterprises and households. For economic growth to happen, we need lenders that get to know businesses and understand people’s lives, make fair lending decisions that take these into account, and offer affordable finance, and incentives to ensure that growing demand for affordable, ethical, credit can be met. That’s why Responsible Finance is part of the campaign calling for a Fair Banking Act”.

[dweemeister]

Best Documentary Short Film Nominees for the 96th Academy Awards (2024, listed in order of appearance in the shorts package)

This blog, since 2013, has been the site of my write-ups to the Oscar-nominated short film packages – a personal tradition for myself and for this blog. This omnibus write-up goes with my thanks to the Regency South Coast Village in Santa Ana, California for providing all three Oscar-nominated short film packages. 

If you are an American or Canadian resident interested in supporting the short film filmmakers in theaters (and you should, as very few of those who work in short films are as affluent as your big-name directors and actors), check your local participating theaters here.

Without further ado, here are the nominees for the Best Documentary Short Film at this year’s Oscars. The write-ups for the Live Action and Animated Short categories are coming soon. Non-American films predominantly in a language other than English are listed with their nation(s) of origin.

Năi Nai & Wài Pó (2023)

Rarely do both sides of one’s family ever meet. You might expect them to mingle at weddings and funerals. But cohabitation? Such is the case with Taiwanese American director Sean Wang’s two grandmothers in Năi Nai & Wài Pó (paternal and maternal grandmother, respectively), available worldwide on Disney+ and Hulu. Wishing to live closer to family, Wang moved in with his grandmothers Yi Yan Fuei (Năi Nai) and Chang Li Hua (Wài Pó) in their California household during the height of the COVID-19 pandemic. His grandmothers rarely leave the house, even for groceries, and keep their heavy curtains drawn at all hours. As thin beams of sunlight barely stream through the interior’s earthy colors, both grandmothers continue to read the newspaper, sing traditional Chinese music, do their own cooking (I assume someone drops off groceries for them), tease each other about farting in bed, and reflect on their families and their pasts. They know that there are fewer tomorrows remaining, but that will not stop them from living joyously and with love for their grandson, who, though off-screen, they converse with throughout the shoot.

Qualifying for the Academy Awards by wining Best Documentary Short at SXSW in 2023 (in addition to the equivalent prize at AFI Fest), Năi Nai & Wài Pó freely admits that its subjects are playing up their act for their grandson. Observational cinema this is not. But in their sense of exaggerated play there exists a twofold acknowledgement. First, as Năi Nai states, “the days we spend feeling pain and the days we spend feeling joy are the same days spent. So, I’m going to choose joy.” And perhaps most meaningfully to Wang, their playing for the camera is one of many ways they express their love for their grandson. It is an elevated home video, a loving portrait, and a reminder to cherish those who loved us into being.

My rating: 7.5/10

The Barber of Little Rock (2023)

People Trust in Little Rock, Arkansas is a Community Development Financial Institution (CDFI). In other words, it is a non-profit – partially funded by the American federal government – to address issues in creating economic growth and opportunities in some of the most underserved communities in the nation through loans, emergency financial assistance, and housing subsidies. People Trust and its President, Arlo Washington, are the subjects of The Barber of Little Rock (available for free online through The New Yorker), directed by John Hoffman (2021’s Fauci) and Christine Turner (2021’s Lynching Postcards: 'Token of A Great Day'). The film, Oscar-qualified by winning the Grand Prize for Documentary Short at Indy Shorts International Film Festival (Indiana), requires a wealth of context to the issues that it raises, but does not always provide enough – especially how municipal, state, and regional history impacts racism in banking, and vice versa.

Arlo Washington is a fascinating, wonderfully-intentioned person, but the movie spends too much time with him directly stating the piece’s thesis about financial equality and generational poverty to the camera. Most compelling of all were some of the individual appointments at People Trust of regular people simply looking for financial relief or a loan to kickstart a business or make their rent payments. So too Washington's barbering training school – especially a scene when two students are asked to look intently at the other’s faces, to understand the other’s struggles simply through quiet observation. Arlo Washington figures in many of these scenes as well, and those scenes reveal as much, if not more, about the lives of People Trust’s clients than any of his brief lectures can accomplish. Hoffman and Turner clearly had deeply cinematic material to work with that could empower their messaging, and it is a shame they are unable to fully utilize it.

My rating: 7/10

Island in Between (2023, Taiwan)

Ten kilometers away from the Chinese city of Xiamen lies Kinmen, a group of islands under control of Taiwan (the island of Taiwan is 187 kilometers away). Directed and narrated by S. Leo Chiang and distributed by The New York Times, Island in Between is Chiang’s meditation on not only Kinmen’s precarious geography and its political status, but his own identity of being American, Chinese, and Taiwanese – three separate identities that interconnect, but are forever distinct. Like many viewers, I was unaware of Kinmen’s existence before viewing Island in Between. This film is most valuable in introducing audiences to a place in some ways frozen in the mid-twentieth century, not so much capturing the spirit of the place and understanding its history.

During visits to mainland China in the late 2000s, Chiang, Taiwanese-born and American-raised, was struck by how vibrant the mainland was – something unrecognizable from “the communist wasteland [he] learned about in school.” In the years since, the crackdown on Hong Kong’s democracy, the COVID-19 pandemic, and increased political tensions between China and Taiwan have complicated his feelings towards the mainland. As a Vietnamese American, I easily saw parallels between how the younger diaspora views our so-called “motherland”, what we are taught, and how older generations perceive their original home. Even among generations, there are divisions in how we feel about the motherland. But Chiang has the additional complication of being caught between three nations important to his being. If anything, his mentions about his parents and their views feels far too cursory, as they are the ones most responsible for shaping his views about American/Chinese/Taiwanese tensions. One hopes this film is not a harbinger of things to come, as beached tanks rust on the placid Kinmen shore.

My rating: 7/10

The ABCs of Book Banning (2023)

As of the publication of this omnibus write-up, bans and challenges to books in libraries and schools have spiked since 2021. These book challenges, often taken up by parents and certain religious organizations, have disproportionately targeted books by and/or about LGBTQ+ and non-white (especially black) people. Stepping into the debate is MTV Documentary Films’ The ABCs of Book Banning (available on Paramount+), directed by Sheila Nevins, Trish Adlesic, and Nazenet Habtezgh. Unfortunately, the film advocates against book challenges in the most stultifyingly artless way. Early on, a title card reveals that the filmmakers will ask about book banning and restrictions from a group that we have heard little from: children. An honorable approach, but the interview snippets found in The ABCs of Book Banning are repetitive and seem rehearsed – children, aghast at the notion that a selected book is a target, offer reasons why book banning is a terrible idea. Nothing Americans have not heard before. Breaking up their interviews are images of book covers, followed by a brief quotation from said book, and an amateurish “BANNED” or “CHALLENGED” banner in red over the book. Sometimes, cheap animation depicting that book’s passage appears; the placement of these animated sequences has no rhyme or reason.

Damningly, this is a film in search of a structure. A handful of authors whose books have been banned from libraries or schools show up to introduce themselves over what appears to be an interview over Zoom. They say a few sentences about why book banning is terrible and we never hear from them again in the film – a complete waste. I suspect these authors recorded longer interviews, but there is almost nothing that remains of those interviews in the final product. This is a film for those who agree with its premise, have no cinematic taste, and are tediously self-satisfied in how they express their political views.

My rating: 4/10

The Last Repair Shop (2023)

The Los Angeles Unified School District (LAUSD) is the last major city school district in the United States to offer free musical instrument repair to its students. From the Los Angeles Times and Searchlight Pictures comes Ben Proudfoot and Kris Bowers’ The Last Repair Shop (also available on Disney+ and Hulu), which takes us to LAUSD’s repair shop. Just short of the 40-minute limit for short films, The Last Repair Shop curiously tells the viewer preciously little about the shop itself (what are the challenges it is facing, and why is the last of its kind?). Proudfoot and Bowers – both previously nominated in this category for A Concerto Is a Conversation (2021; also available online thanks to The New York Times) – adopt much of the same style as their previous nominee. Both films share talking heads in shallow focus and snappy editing. These aspects sometimes made A Concerto Is a Conversation incohesive, but they work immensely better for The Last Repair Shop. It also helps that The Last Repair Shop, which slowly reveals itself to also be a portrait of a rarely-seen side to L.A., has a clear structure that the viewer can discern early on.

What carries The Last Repair Shop are the life-affirming conversations we have with the four principal interview subjects, all of whom work in a different department at the shop – Dana Atkinson (strings), Paty Moreno (brass), Duane Michaels (woodwinds), and Steve Bagmanyan (pianos; also the shop supervisor, and who inspired the film as he tuned pianos at Bowers’ high school). Whether they play an instrument or not, all four recognize music’s ability to better understand ourselves and others, and as “one of the best things that humans do.” The addition of student voices to the film – especially when one realizes that the repair shop employees almost never hear back from the children whose instruments they repair – strengthens a connection, however distant, through music. The Last Repair Shop’s final minutes provide it that final cinematic touch you might have anticipated, an affirmation of why those who speak the language of music hold it so dear.

My rating: 8.5/10

^ Based on my personal imdb rating. My interpretation of that ratings system can be found in the “Ratings system” page on my blog. Half-points are always rounded down.

From previous years: 88th Academy Awards (2016) 89th (2017) 90th (2018) 91st (2019) 92nd (2020) 93rd (2021) 94th (2022) 95th (2023)

For more of my reviews tagged “My Movie Odyssey”, check out the tag of the same name on my blog.

[animatedaf]

Here's a new piece of animation I made for Responsible Finance with Deadline Communications about CDFIs! Check out the full film below!

[leilanibradford]

The Top Business Resources Every Minority Entrepreneur Should Know

As a minority entrepreneur, accessing the right resources can be the key to overcoming obstacles and achieving success. With growing support from both the private and public sectors, a variety of programs, networks, and funding options are available to help minority-owned businesses thrive. Whether you’re just starting out or looking to expand, understanding which resources can make a real difference is critical. Here’s a detailed look at the top resources every minority entrepreneur should know about.

Minority Business Development Agency (MBDA)

The Minority Business Development Agency (MBDA) is a vital resource for minority entrepreneurs. Operated by the U.S. Department of Commerce, the MBDA provides a wide array of services, including business consulting, access to capital, and market opportunities. One of its key offerings is the MBDA Business Center network, which helps minority-owned businesses access contracts, expand into new markets, and improve operational efficiency.

The MBDA also provides access to grants and networking opportunities, making it easier for minority entrepreneurs to connect with like-minded business owners and potential partners. Their focus on increasing the competitiveness of minority-owned firms ensures that you are set up for success and positioned to grow and thrive in competitive markets.

SBA’s 8(a) Business Development Program

For minority entrepreneurs looking to secure government contracts, the Small Business Administration's 8(a) Business Development Program is an invaluable resource. This program provides a pathway to securing federal contracts by helping minority-owned businesses become certified as 8(a) businesses. Once certified, businesses can compete for set-aside government contracts and access other benefits, such as specialized business training and technical assistance.

The 8(a) program is specifically designed to help socially and economically disadvantaged business owners gain a foothold in federal procurement, making it easier for minority entrepreneurs to break into the lucrative government contracting space.

National Minority Supplier Development Council (NMSDC)

Another critical resource is the National Minority Supplier Development Council (NMSDC). The NMSDC connects minority-owned businesses with corporations looking to diversify their supply chains. Through certification as a Minority Business Enterprise (MBE), entrepreneurs gain access to corporate buyers, contract opportunities, and the NMSDC’s extensive network of over 1,750 corporations.

The NMSDC also offers events, networking opportunities, and business matchmaking services to help minority entrepreneurs build relationships with key corporate decision-makers. If you’re looking to grow your business through corporate contracts, becoming MBE-certified through the NMSDC is a strategic move.

Local and National Grant Programs

Many minority entrepreneurs can benefit from grant programs specifically designed to support underrepresented business owners. Unlike loans, grants do not need to be repaid, making them a desirable source of funding. Both government and private sector organizations offer grants for minority-owned businesses.

The FedEx Small Business Grant and the Comcast RISE grant are examples of corporate grants aimed at minority business owners. These programs provide cash grants and, in some cases, additional resources such as marketing and technology support.

On the government side, the U.S. Department of Commerce’s MBDA offers grant opportunities aimed at helping minority businesses scale and access new markets. While grants can be competitive, with a strong application and a clear business plan, they are an excellent way to secure funding without taking on debt.

Community Development Financial Institutions (CDFIs)

Community Development Financial Institutions (CDFIs) play a crucial role in providing financing to minority entrepreneurs who may not qualify for traditional bank loans. CDFIs are mission-driven institutions that focus on lending to underserved communities, including minority-owned businesses.

CDFIs often offer more flexible loan terms, lower interest rates, and smaller loan amounts than traditional banks, making them a viable option for minority entrepreneurs in need of capital. Additionally, CDFIs often provide business counseling and financial education to help entrepreneurs manage their funds effectively.

Crowdfunding Platforms and Peer-to-Peer Lending

Technology has made it easier for minority entrepreneurs to access funding through crowdfunding and peer-to-peer lending platforms. Websites like Kickstarter, Indiegogo, and GoFundMe allow entrepreneurs to raise money from individuals who believe in their business ideas.

Equity crowdfunding platforms like Republic and SeedInvest enable minority-owned businesses to raise capital in exchange for equity.

Peer-to-peer lending platforms, such as Kiva, also provide a way for minority entrepreneurs to obtain small loans from individuals rather than financial institutions. These platforms often have fewer requirements than traditional lenders, making them an attractive option for entrepreneurs who need capital but face barriers to traditional financing.

Business Incubators and Accelerators

Business incubators and accelerators are excellent resources for minority entrepreneurs looking to grow their businesses quickly. These programs provide mentorship, office space, access to investors, and, in many cases, funding. Several incubators and accelerators focus specifically on minority-owned businesses, providing a supportive environment for entrepreneurs to thrive.

Programs like Backstage Accelerator and the Impact Ventures Accelerator are tailored to help minority and underrepresented entrepreneurs scale their businesses. These programs often culminate in pitch competitions, where entrepreneurs have the opportunity to secure funding from venture capitalists and angel investors.

Participating in an incubator or accelerator program can give minority entrepreneurs the resources, guidance, and connections needed to navigate challenges and grow their businesses more effectively.

Mentorship and Networking Organizations

Having access to experienced mentors and a strong network of peers is essential for minority entrepreneurs. Organizations like SCORE and the Minority Chamber of Commerce offer mentorship and networking opportunities designed to help minority-owned businesses succeed.

SCORE, a nonprofit organization, provides free business mentorship and education through a network of volunteer business experts. Whether you need help with business planning, marketing, or financial management, SCORE mentors can offer invaluable guidance.

The Minority Chamber of Commerce provides networking events, advocacy, and access to business resources specifically aimed at supporting minority entrepreneurs. Building relationships through these organizations can help minority entrepreneurs gain new perspectives and opportunities for collaboration.

Key Resources for Minority Entrepreneurs

MBDA: Offers consulting, market access, and business center support.

SBA 8(a) Program: Provides government contract opportunities.

NMSDC: Links minority businesses to corporate supply chains.

Grants: FedEx, Comcast RISE, and MBDA for funding.

CDFIs: Alternative financing for underserved communities.

Crowdfunding: Kickstarter, GoFundMe for alternative funding.

Incubators/Accelerators: Programs like Backstage Accelerator for scaling.

In Conclusion

Navigating the world of business as a minority entrepreneur comes with unique challenges, but the resources available today are designed to bridge those gaps and set you up for success. From securing funding through grants and loans to leveraging certification programs like those offered by the NMSDC, these resources provide vital support. By tapping into the programs, networks, and financial options highlighted in this article, you can confidently grow and scale your business, knowing that these resources are designed to support minority entrepreneurs every step of the way.

[kevindoylejones1]

Linking two networks doing the same thing often in the same neighborhoods who can’t see each other yet.

Im turning this into a journal, from this part of the blog onward it’s reflection on being between two resource input system, in the cdfi, credit union, CDC, and college helping to channel money to people in categories the funders haven’t learned to define and that needs to be defined, like caterers who didn’t have the friends and family funding to start a restaurant. So they stay at being…

[kk-mycitysocial]

Understanding the New Markets Tax Credit (NMTC) Program

The New Markets Tax Credit (NMTC) program is a federal incentive designed to spur private investment in economically distressed communities. By offering tax credits to investors, the NMTC program aims to encourage investment in areas that have traditionally lacked access to capital, thereby fostering economic development and creating jobs.

Background and Purpose of the NMTC Incentive

The NMTC program was established by Congress as part of the Community Renewal Tax Relief Act of 2000. Its primary goal is to stimulate investment in low-income communities by providing investors with a tax credit program against their federal income tax. These investments are meant to drive economic growth, create jobs, and support businesses and services in underserved areas.

NMTC Overview: Structure, Tax Credits, and Application/Award Process

The NMTC program is structured to attract private capital by offering a 39% tax credit over seven years (5% for the first three years and 6% for the remaining four years). The tax credits are allocated by the Community Development Financial Institutions (CDFI) Fund, a division of the U.S. Department of the Treasury. Structure Community Development Entities (CDEs): Organizations that receive allocations of NMTCs. CDEs are responsible for selecting and investing in qualified businesses and projects in low-income community development. Qualified Active Low-Income Community Businesses (QALICBs): Businesses and projects that receive investments from CDEs. Qualified Low-Income Community Investments (QLICIs): Investments made by CDEs into QALICBs. Tax Credits The New Market Tax Credit program offers a significant incentive for investors. For every $1 of investment, investors receive a 39% tax credit, claimed over a seven-year period. Application/Award Process Application: CDEs apply to the CDFI Fund for NMTC allocation authority. Award: The CDFI Fund evaluates applications and awards NMTC allocations to selected CDEs. Investment: CDEs use the NMTC allocations to attract private investment and provide financing to QALICBs.

Claiming the Credits

Investors claim the NMTC over a seven-year period. The credit amount is 5% of the total investment for the first three years and 6% for the remaining four years. This staggered schedule encourages long-term investments in low-income communities.

The Leverage Structure

One common method to maximize the NMTC benefit is the leverage structure. In this arrangement, multiple sources of funding (equity, loans, etc.) are combined to enhance the amount of investment that qualifies for the tax credit. This structure can significantly amplify the impact of the NMTC by increasing the total investment in a QALICB.

Allocation Application and Rounds

The CDFI Fund periodically opens rounds for CDEs to apply for NMTC allocations. These rounds are highly competitive, and CDEs must demonstrate their ability to deploy the credits effectively and achieve significant community impact. Community Development Entities (CDEs) CDEs play a crucial role in the NMTC program. They are responsible for: Service Areas: Identifying and serving specific low-income communities. Governing/Advisory Boards: Ensuring community representation and input in decision-making processes. Qualified Active Low-Income Community Businesses (QALICBs) QALICBs are the ultimate beneficiaries of NMTC investments. To qualify, a business or project must meet certain criteria, such as being located in a low-income community and generating substantial community benefits. Qualified Low-Income Community Investments (QLICIs) and the Sub-All Test QLICIs are the actual investments made by CDEs into QALICBs. To qualify, these investments must meet the "substantially-all" test, meaning that a significant portion of the investment must be used in low-income communities or for the benefit of low-income persons.

Avoiding Credit Recapture

To prevent credit recapture, which would negate the NMTC benefits, investments must adhere to several requirements: Compliance: Maintaining compliance with NMTC regulations throughout the seven-year credit period. Reporting: Regular reporting to the CDFI Fund and ensuring that QALICBs continue to meet qualification criteria.

Conclusion

By understanding the intricacies of the New Markets Tax Credit program, investors, CDEs, and QALICBs can work together to drive meaningful economic development in communities that need it most. The NMTC program is a powerful tool for fostering growth, creating jobs, and improving the quality of life in economically distressed areas across the United States. Read the full article

[invisibleicewands]

Actor and debt campaigner Michael Sheen has joined calls for the government to pass legislation to help tackle the crisis of unaffordable credit and problem debt in the UK.

In 2022-2023, more than nine million individuals were declined for credit, with millions relying on pay-day-lenders and buy-now-pay-later schemes with high interest rates. At its worst, lack of access to affordable credit means hundreds of thousands of people find themselves turning to loan sharks, while viable businesses remain stuck, unable to develop and create jobs.

Campaigners are calling for a Fair Banking Act to help ensure that everyone can access essential financial services and support.

Speaking at an event in Parliament on Monday, Mr Sheen said: “Anyone can find themselves in a place where they need credit to make ends meet or to get through a difficult time.

“The lack of affordable credit for people on lower-incomes is harming individuals and families, but also businesses and communities. Whole regions are seeing their growth held back. We can’t keep waiting and hoping that things will get better. We need something to change now. The Fair Banking Act could be the thing which really makes the difference.”

The event in parliament was organised by the All Party Parliamentary Group on Fair Banking, alongside the Fair Banking for All Campaign – a group including credit unions, Community Development Finance Institutions (CDFIs), fintechs, charities and policy experts who are calling for a Fair Banking Act to help increase access to affordable credit. MPs, peers and financial regulators were among the attendees.

Lloyd Hatton MP, chair of the APPG, said: “We need a Fair Banking Act to help increase affordable lending in every corner of the country, ensure small businesses have access to the financial support they need, and guarantee that nobody is financially excluded by the mainstream banks.

“Only then will we deliver sustained economic growth across the whole of the UK.”

Before the election, Labour announced that financial inclusion would be a priority for them in government, with plans being developed for a comprehensive national Financial Inclusion Strategy. The Fair Banking for All Campaign is calling for a Fair Banking Act to be a central pillar of this strategy, to help grow the responsible finance sector. The idea is based on a successful example from the US, where similar legislation has successfully increased access to financial services and support for people on low-incomes and from marginalised communities.

As well as leading mainstream banks to improve their own provision of affordable credit for underserved communities, the proposed legislation would also incentivise partnerships between high-street banks and institutions such as credit unions and CDFIs, which are often best placed to provide tailored services that meet the needs of individuals and small businesses who have been turned down by larger institutions.

Recently published research from the Fair Banking for All Campaign estimated that a Fair Banking Act in the UK could increase fair and affordable lending to individuals by £2bn a year – equivalent to the total amount owed to loan sharks. This would help to pull the rug out from under the illegal lending market, by providing people with a safe and affordable alternative when they’re in urgent need. Additional support to small businesses could create or maintain just under 10,000 jobs over five years, including in some of the most economically deprived parts of the country – where small businesses currently find it hardest to get loans from high street banks.

Robert Kelly, chief executive of the Association of British Credit Unions Ltd, was another of the speakers at the event. He said: “We need more humanity in our banking system.

“At a time when more and more people need access to affordable credit, their options are becoming more and more limited. People are being turned down by high-street banks because of their income level or credit score, and so they’re turning to high-cost credit or illegal lending.

“Credit unions give them an alternative. The sector continues to serve communities and employers across the country at record levels through the provision of ethical and responsible products and services.

“There’s so much demand out there for this kind of alternative – but we need a Fair Banking Act so we can grow to meet that demand, and help millions more people”

Theodora Hadjimichael, chief executive of Responsible Finance which represents CDFIs in the UK, said: “Community Development Finance Institutions (CDFIs) invest into underserved places and people, unlocking potential for businesses, social enterprises and households.

“For economic growth to happen, we need lenders that get to know businesses and understand people’s lives, make fair lending decisions that take these into account, and offer affordable finance, and incentives to ensure that growing demand for affordable, ethical, credit can be met.

“That’s why Responsible Finance is part of the campaign calling for a Fair Banking Act.”

[onlinebusinesslineofcredit]

Loans For Self Employed No Credit Check - Boost Your Business

As a self-employed individual seeking loans without credit checks, you'll face significant challenges.  Traditional lenders often require strong credit histories, making it difficult to secure financing. Nevertheless, alternative options exist, such as online lenders, peer-to-peer platforms, and microloans, which may offer more flexible criteria. Focus on building your business credit and improving your financial profile rather than pursuing risky no-credit-check loans. Maintain detailed financial records, manage cash flow effectively, and consider secured loans if you have assets for leverage. By understanding the documentation requirements and demonstrating income stability, you'll increase your chances for approval. Exploring these strategies can open up more viable financing opportunities to secure. https://www.youtube.com/watch?v=5QLele6zRGM

Key Takeaways

- No-credit-check loans often involve predatory practices and high interest rates for self-employed individuals. - Online lenders and P2P platforms may offer more flexible criteria without traditional credit checks. - Microloans and CDFIs provide alternative financing options with less emphasis on credit scores. - Focus on improving your financial profile and building business credit instead of pursuing no-credit-check loans. - Consider secured loans or providing extensive financial documentation to offset the need for credit checks.

Challenges Self-Employed Individuals Face When Seeking Loans

Uncertainty often plagues self-employed individuals when they seek loans. Challenges include meeting stringent eligibility criteria for self-employed loans and providing a steady income. Lenders may use alternative credit assessment methods for evaluating creditworthiness. While financial assistance options exist, be cautious regarding potential predatory lending practices. Focus on improving your financial profile and exploring legitimate lending options rather than seeking no-credit-check loans, which can be risky.

Alternative Lending Options For Self-Employed With Limited Credit History

When exploring alternative lending options, you'll find that online lenders often have more flexible criteria for self-employed borrowers with limited credit history. Peer-to-peer lending platforms can connect you directly with individual investors who may be willing to fund your loan based on factors beyond traditional credit scores. For smaller financing needs, you might consider microloans or community development financial institutions, which typically focus on supporting local entrepreneurs and small businesses. Are You Eligible for a No Credit Check Loan? Online Lenders And Their Criteria Maneuvering the lending terrain as a self-employed individual with a limited credit history can be challenging, but online lenders have emerged as a viable substitute. These platforms often use alternative credit data to assess risk, offering more flexible eligibility criteria for self-employed individuals. While they don't provide "no credit check" loans, online loans for self-employed borrowers may require less traditional documentation, focusing instead on business performance and cash flow. Peer-to-peer Lending Platforms Emerging as a popular alternative for self-employed individuals with limited credit history, peer-to-peer (P2P) lending platforms connect borrowers directly with individual lenders. These platforms offer self-employed financing choices with potentially competitive rates. While not guaranteed, P2P lending can provide access to funds for those who may struggle with traditional lenders. To increase your chances, focus on improving your financial profile and presenting a solid business plan for potential lenders. Microloans And Community Development Financial Institutions For self-employed individuals with limited credit history, microloans and Community Development Financial Institutions (CDFIs) offer viable alternatives to traditional lending. These responsible lending practices cater to the financial needs of self-employed borrowers: - Microloans provide small-scale funding for startups and growth. - CDFIs focus on community economic development and financial inclusion. - Both options typically offer more flexible terms than traditional banks. These alternatives emphasize local economic impact and personalized financial support for self-employed entrepreneurs.

Building Business Credit As A Self-Employed Individual

As a self-employed individual, building business credit is essential for future financing opportunities. You'll need to start by separating your personal and business finances, then establish dedicated business credit accounts. Consistently making timely payments and managing your credit utilization will help you develop a strong business credit profile over time. Separating Personal And Business Finances A self-employed individual's financial success often hinges upon their ability to separate personal and business finances. This practice enhances financial clarity, simplifies tax preparation, and improves access to credit check business loans. When seeking self-employed loans, demonstrating clear proof from earnings becomes easier with distinct accounts. Financial resources for separating finances include: - Dedicated business checking account - Separate business credit card - Professional accounting software These tools help maintain a clear financial boundary, essential for both daily operations and future loan applications. Establishing Business Credit Accounts Building business credit as a self-employed individual starts with establishing dedicated business credit accounts. Open a business checking account and apply for a business credit card. Avoid seeking "loans for self employed no credit check" as these often involve predatory lending practices. Instead, focus on building relationships with credible partner lenders. Consider alternatives like invoice factoring or a freelance cash advance from reputable platforms to manage cash flow while establishing your business credit profile. Timely Payments And Credit Utilization Timely payments and proper credit utilization form the bedrock for building a strong business credit profile for self-employed individuals. Consistently meeting your monthly payments and maintaining a healthy credit utilization ratio are essential. To improve your customer experience and creditworthiness: - Establish a strict repayment schedule - Consider balance transfer options for managing debt - Avoid seeking self-employed loans without a credit check Focus on responsible financial management to strengthen your business credit standing.

Documentation Requirements For Self-Employed Loan Applicants

When applying for loans as a self-employed individual, you'll need to provide thorough documentation to prove your income and financial stability. You should be prepared to submit tax returns and profit & loss statements, which demonstrate your business's financial health over time. Furthermore, lenders may require bank statements, financial records, and copies of your business licenses and registrations to verify your operational status and legitimacy. Tax Returns And Profit & Loss Statements As a self-employed individual seeking a loan, you'll need to provide thorough documentation to prove your income and financial stability. Tax returns and profit & loss statements are essential for demonstrating your business revenue and financial health. While "self employed loans no credit check" may seem appealing, responsible lenders will always review your financial history. - Frustration with complex application processes - Relief when organizing financial documents - Anticipation of a smoother loan approval These documents streamline the application process and timeline, increasing your chances for loan approval. Bank Statements And Financial Records Bank statements and financial records serve as crucial evidence regarding your financial stability when applying for loans as a self-employed individual. Business lenders typically require at least 3-6 months' worth of bank statements to assess your cash flow and income consistency. As a self-employed borrower, you'll need to provide detailed financial records, including profit and loss statements, to demonstrate your ability to repay short-term loans or alternative financing options. Business Licenses And Registrations Beyond financial records, lenders also require proof regarding your business's legal status and operations. When applying for business loans, loans for entrepreneurs, or loans for freelancers, you'll need to provide: - Valid business license - Tax registration documents - Industry-specific certifications These documents demonstrate your legitimacy and compliance with regulations. While merchant cash advances and short-term loans can address urgent financial needs, they often have higher interest rates. Focus on improving your creditworthiness and exploring traditional lending options for better terms.

Strategies For Improving Creditworthiness

Improving your creditworthiness as a self-employed individual requires a multifaceted approach. You'll need to focus on maintaining a strong personal credit score through timely bill payments and responsible credit use. Furthermore, consistently reporting your income and building relationships with financial institutions can help establish your reliability and increase your chances for loan approval. Maintaining A Strong Personal Credit Score Maintaining a strong personal credit score is crucial for self-employed individuals seeking financing alternatives. A good credit score can lead to: - Quicker funding speed - Lower interest rates - More favorable repayment terms For self-employed loans, a strong credit score is a key benefit. This demonstrates your financial responsibility and increases your chances for approval. Regularly monitor your credit report, pay bills punctually, and keep credit utilization low to maintain a healthy score. Consistent Income Reporting Consistent income reporting plays a crucial role in enhancing your creditworthiness as a self-employed individual. Lenders assess your financial stability differently than traditional employees. Maintain accurate records of your income, including gig economy earnings, to demonstrate reliability. Such consistency aids when applying for various types of loans accessible, from short-term duration options to more substantial financing. Avoid instant cash loans online for self-employed offers, as reputable lenders always conduct credit checks. Building Relationships With Financial Institutions While consistent income reporting helps establish your financial reliability, building strong relationships with financial institutions can greatly enhance your creditworthiness as a self-employed individual. When seeking loans for your business, focus upon: - Maintaining regular communication with your bank - Demonstrating responsible financial management - Utilizing business banking services These practices improve your chances of securing traditional loans, rather than resorting towards quick loans or no credit check options, which often carry higher risks and costs.

Exploring SBA Loan Programs For Self-Employed Individuals

SBA loan programs offer valuable financing options for self-employed individuals seeking to grow their businesses. You'll find various SBA loan types, each with specific eligibility criteria customized for different business needs and stages of development. To apply, you'll need to prepare an extensive business plan, financial statements, and other required documentation, then work with an SBA-approved lender to submit your application. Overview Of SBA Loans Self-employed individuals looking to grow their businesses can turn toward Small Business Administration (SBA) loans as a viable financing option. These government-backed loans offer competitive terms and lower down payments compared with traditional bank loans. SBA loans come in various types, each designed for specific business needs. - Access to capital for expansion and growth - Flexible repayment terms customized for your business - Lower interest rates aimed at reducing overall borrowing costs SBA loans require a credit check and a thorough application process, ensuring responsible lending practices. Eligibility Criteria For Self-employed Borrowers Many self-employed individuals can qualify for SBA loans, but you'll need to meet specific eligibility criteria. You must operate a for-profit business in the U.S., have invested your own time and money, and exhausted other financing options. Your business should meet SBA size standards, and you'll need a good credit score and a solid business plan. Demonstrating sufficient cash flow to repay the loan is essential. Application Process And Requirements When applying for an SBA loan as a self-employed individual, you'll need to steer through a thorough application process. The Small Business Administration offers various loan programs customized for self-employed entrepreneurs. To increase your chances of approval, prepare the following: - A complete business plan - Detailed financial statements and projections - Personal and business tax returns for the past three years These documents demonstrate your business's viability and your ability to repay the loan.

The Role Of Business Plans In Securing Loans

A well-crafted business plan is vital when seeking financing for your self-employed venture. You'll need to include key components such as financial projections, market analysis, and a clear business strategy to demonstrate your venture's viability. Lenders will scrutinize your business plan to assess the potential risks and rewards from providing you with a loan, making this an important tool in your quest for funding. Key Components Of A Strong Business Plan Every strong business plan plays a vital role in securing loans for self-employed individuals. Key components include: - Executive summary - Market analysis - Financial projections Your business plan should clearly outline your company's structure, goals, and strategies. This demonstrates your understanding of the market and showcases your potential for success. Lenders use the document to assess your creditworthiness and ability to repay the loan, making it critical for securing financing. Financial Projections And Market Analysis Financial projections and market analysis form the backbone of a compelling business plan, crucial for securing loans as a self-employed individual. You'll need to provide detailed income forecasts, expense breakdowns, and cash flow projections. Include a thorough market analysis highlighting your target audience, competition, and growth potential. These elements demonstrate your business's viability and your ability to repay the loan, increasing your chances for approval from legitimate lenders. Only 16% of small businesses have between 1 and 19 employees, which equates to over 5.4 million businesses How Lenders Evaluate Business Plans Lenders scrutinize business plans as a crucial component in their loan evaluation process for self-employed individuals. They assess your business's viability, financial projections, and market potential. A well-crafted business plan demonstrates your: - Strategic thinking and industry knowledge - Ability to identify and mitigate risks - A clear path towards profitability and loan repayment Your business plan should include detailed financial forecasts, market analysis, and operational strategies. Such an extensive document helps lenders gauge your creditworthiness beyond traditional credit checks.

Traditional Banks Vs. Online Lenders For Self-Employed Borrowers

When considering financing choices as a self-employed borrower, you'll find significant differences between traditional banks and online lenders. You should compare interest rates, loan terms, approval processes, and timelines to determine which option best suits your needs. Online lenders often offer more flexibility in their lending criteria, which can be advantageous for self-employed individuals with non-traditional income documentation. Comparison Of Interest Rates And Terms Comparing interest rates and terms between traditional banks and online lenders is crucial for self-employed borrowers seeking the best financing choices. Consider these factors: - Annual Percentage Rate (APR) - Loan duration and repayment flexibility - Collateral requirements Traditional banks often offer lower rates but have stricter qualifications. Online lenders may provide quicker approval and more flexible terms, but potentially higher interest rates. Evaluate your financial situation and business needs to determine the most suitable option. Anita Campbell, CEO of Small Business Trends, advises: "Self-employed business owners should focus on building multiple income streams to create stability and hedge against market fluctuations." Approval Processes And Timelines Self-employed borrowers face two distinct approval processes when seeking loans from traditional banks versus Internet lenders. Traditional banks typically require extensive documentation, including tax returns, financial statements, and business plans. Such a process can take weeks or months. Online lenders often use automated underwriting systems, analyze bank statements and cash flow data. Their approval process is usually swifter, sometimes providing decisions within periods. Nonetheless, both types of lenders will still assess your creditworthiness. Read the full article

[subhambiswas287]

Unlocking Business Loan Eligibility: A Guide to Secure Financing

In today’s competitive market, securing a business loan can be a crucial step towards growth and sustainability. However, many entrepreneurs face challenges in meeting the eligibility criteria set by financial institutions. As a financial service specialist and content writer, I delve into effective strategies to enhance business loan eligibility.

Improve Credit Score: A strong credit score is vital for loan approval. Encourage timely payments, reduce credit utilization, and rectify any errors in credit reports.

Strengthen Financial Statements: Banks assess your financial health through balance sheets, income statements, and cash flow projections. Ensure accuracy and highlight positive trends.

Reduce Debt-to-Income Ratio: Lowering existing debts relative to income enhances borrowing capacity. Aim to pay off high-interest debts or renegotiate terms.

Boost Collateral: Offering valuable assets as collateral mitigates lender risk. Real estate, equipment, or accounts receivable can serve as security.

Prepare a Comprehensive Business Plan: Clearly outline your business objectives, market analysis, and financial projections. A well-crafted plan showcases commitment and feasibility.

Establish a Relationship with Lenders: Cultivate trust and rapport with banks or credit unions. Regular communication and transparent disclosure can foster confidence in your business.

Explore Alternative Lenders: Non-traditional lenders like online platforms or community development financial institutions (CDFIs) may offer more flexible terms, catering to diverse business needs.

By implementing these strategies, entrepreneurs can significantly enhance their business loan eligibility. For instance, imagine a small bakery seeking expansion funds. By diligently improving its credit score, presenting a detailed business plan, and offering equipment as collateral, the bakery increases its chances of securing a loan from a local bank.

In conclusion, navigating the complexities of business loan eligibility demands strategic planning and proactive measures. Entrepreneurs must focus on enhancing their financial profile, fostering lender relationships, and exploring diverse financing options. With the right approach, businesses can unlock the funding they need to thrive in today’s dynamic market landscape.

[seanmorrisisnotyourdad]

These 10 banks are the best banks new businesses with bad credit

Navigating the Banking Landscape: A Guide for Entrepreneurs

As a credit specialist, I'm often asked about the best banks for entrepreneurs starting out. In this post, I'll share my insights on the top banks you should consider and the key factors to keep in mind.

Tier One Banks

Chase Bank - Uses FICO 8 scoring model Citibank - Also uses FICO 8 scoring model Capital One - Pulls from all three credit bureaus

Tier Two Banks

Wells Fargo - Uses Experian FICO 9 scoring model, offers business credit cards and lines of credit PNC Bank - Also uses Experian FICO 9 scoring model Regions Bank - Uses Vantage Four scoring system, has special programs for minority-owned businesses

Tier Three Banks

Navy Federal Credit Union - Uses Experian FICO 9 scoring model, but also has an internal scoring system Connector - Experian FICO 9 lender, is a Community Development Financial Institution (CDFI) Baxter Credit Union (BCU) - Uses Vantage Score 3.0 from TransUnion Vidiian - Also uses TransUnion Vantage Score 3.0

The key advantages of these tier two and three banks are that they are more flexible, often requiring less time in business and fewer credit inquiries. They also offer features like 0% interest on business credit cards, which can be useful for managing cash flow and investments.

Remember, when it comes to funding your business, it's best to have a diversified approach and consider multiple tiers of banks. This will give you the highest chance of securing the financing you need to get your entrepreneurial venture off the ground.

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[hildatjames]

These 10 banks are the best banks new businesses with bad credit

Navigating the Banking Landscape for Entrepreneurs: Top Tier Banks for Funding Success

As a Credit Specialist, I'm often asked about the best banks for entrepreneurs starting their business. In this post, I'll provide a comprehensive guide to help you identify the top-tier banks that offer the highest chances of funding.

Tier One Banks

Chase Bank - Uses FICO 8 scoring model

Citibank - Also uses FICO 8 scoring model

Capital One - Pulls all three credit bureaus when opening accounts

Tier Two Banks

Wells Fargo - Uses Experian FICO 9 scoring model, making it easier to obtain funding. They also offer a business credit card and line of credit opportunities.

U.S. Bank - Uses FICO 9 scoring model and provides convenience checks to help you liquidate your card balances.

PNC Bank - Also uses Experian FICO 9 scoring model.

Truist - Uses FICO 8 scoring system, so I'd recommend exploring FICO 9 or Vantage Score options instead.

Tier Three Banks (Credit Unions)

Navy Federal Credit Union - Uses Experian FICO 9 scoring model, but also has an internal scoring system.

Connector - A CDFI (Community Development Financial Institution) that uses Experian FICO 9 and is more flexible in working with small and minority-owned businesses.

Baxter Credit Union (BCU) - Uses Vantage Score 3.0 from TransUnion, which considers authorized users, rental payments, and utility bills on your credit file.

Vidiian - Also uses TransUnion Vantage Score 3.0, with similar flexible criteria as BCU.

The key advantages of these tier two and three banks are their easier approval processes, quicker access to lines of credit, and more lenient credit score requirements (often using FICO 9 or Vantage Score). Additionally, many of these institutions offer 0% interest credit cards and the ability to liquidate card balances through convenient checks.

Remember, starting with the right bank is crucial for entrepreneurs seeking funding. By understanding the different tiers and their unique features, you can maximize your chances of securing the financing you need to grow your business. If you have any further questions about business credit funding or personal credit management, feel free to schedule a one-on-one consultation.

YouTube Source: https://www.youtube.com/watch?v=PAm5IXW1Uqg YouTube Channel: https://www.youtube.com/channel/UCwTiSgSSNPiNANoB2cREAAg Related Content: https://www.pinterest.com/pin/604397212522312773/