Another success storyLakota Funds Credit Builder Loan Helps “Fix” Credit Score
By chance or fortune, Bernadette Winters-Shay found out about Lakota Funds and its Financial Literacy Course when it was offered in Pine Ridge. She says she became interested because “I wanted to fix my credit. So, I met David White Bull and took the class he was teaching”.
“After that, I worked with Kateri Montileaux and she became my Success Coach. I asked her questions about getting my credit back. She met with me and told me about the Credit Builder Loan. She helped me fill out the application, look at the other requirements I needed, like collateral for the loan (I used my car title) and the required Financial Literacy course. Also, we took a look at my finances and we created a personal budget.”
“Now I’m working on improving my credit score because I want to purchase a home without having to have a co-signer. Building my credit back up is a priority and the right thing to do.”
According to Lakota Funds Success Coach, Kateri Montileaux, “The Credit Builder Loan is Lakota Funds only “consumer” loan (for individuals, not businesses). It’s a loan for up to $2500 to be used to pay off collection items, garnishments, and loans with exorbitant interest rates, like title loans and payday loans.”
Some of the loan requirements include: completion of Lakota Funds Financial Literacy class, a personal budget completed with one of our Success Coaches, collateral, and six months of verifiable income. The borrower must also agree to meet with a Success Coach at least every other month and agree to take the Credit When Credit is Due class within six months of approval. Tawney Brunsch, Lakota Funds Executive Director adds, “The whole point of the Credit Builder Loan is not only to payoff and close the negative items dragging your score down, but to take the steps necessary to make sure it doesn’t happen again. We also help the borrower create and stick to a budget to either pay down, or stay on top of other bills or maybe even start saving. Based on the stats we’ve gathered since the program’s inception in January 2009, we’ve seen scores increase as much as 30 points in 8 months. At that rate it doesn’t take long to see the benefit.”
Bernadette thinks that, “Lakota Funds is a good institution. I was very bummed out by my credit score and it was stressful. When I came to Lakota Funds it was like the rainbow after the storm. I became hopeful to start working on my credit. It makes my future look a lot brighter. I felt that there was hope. I’d say to other people in similar circumstances, don’t give up. There is hope out there. Call Lakota Funds. They are willing to help.”
Presently, the only consumer loan product offered by Lakota Funds is the Credit Builder Loan.
Gear Up and Lakota Funds build young people’s skills towards higher education and successful independent lives
Funded by the U.S. Department of Education in 2005, the South Dakota Department of Education received one of 27 state Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP) grants awarded throughout the United States. The total federal grant award for the six-year grant period is approximately $6.9 million.
The goal for the GEAR UP program is to increase the number of first generation, low-income American Indian Students who are prepared to enter and succeed in postsecondary education. Governor M. Michael Rounds designated the Department of Education as the administrator of the GEAR UP grant. LuAnn Werdel, Director of the office of Indian Education, serves as project director and leads the GEAR UP program.
GEAR UP is working with a diverse set of 24 middle and 14 high schools that include public, parochial and contract grant schools funded by the Bureau of Indian Education and chartered by eight tribes on eight reservations. During the 2008-09 school year, the GEAR UP program served 3,584 students and 3,368 parents.
During this summer’s session, Lakota Funds’ participation in the thriving Gear Up project is in the form of its Financial Literacy curriculum. As of this writing, the Camp is currently in its fourth week and taking place at South Dakota School of Mines & Technology.
In an interview with Stacy Phelps, project coordinator of the summer camp, reveals a picture of growing success.
He disclosed that after some preliminary screening their enrollment this year is 230 students participating in the camp.
About the number of participants Stacy said: “We're growing by quite a bit. For instance this year's incoming class which are people coming out of 8th grade we had 250 applications, where typically we get about 150 or 160. And out of that we take about half. So, it's growing quite a bit.”
“The camp runs six weeks. This is our 18th summer and although it hasn't always had the name Gear up, it has changed names based on where the funding came from. The format has been refined and formatted over the years, so it's always had a similar format.”
How did Phelps become interested in the program, follows a not so complicated logic. “I did some work in the middle school for a program when I was in college at the School of Mines and then worked with some people here on campus and got some money from NASA to get started. We modeled it after some programs I'd had in high school and we've refined it since.”
About the rewards of the project he adds: “What's rewarding for us is that for our alumni's high school graduation rate is 100%. College placement is 80%. We place about 9% in the military and then about 60% of college retention and graduation. That's pretty rewarding considering a lot of our kids are coming from areas where high school graduation is not good. So, just the success rate we're able to help develop for each of our students and their families in going to college and being successful in college when they're done with our program, is a reward.”
Another rewarding experience is seeing that “Typically, over half our staff is alumni of the program who are in college or getting ready to go into college. We usually are closer to having 75% to 80% of our staff who are alumni, but this year we added a lot of staff because we're cycling new staff and they are younger so we have some older staff to balance it out in case they can get the younger ones (staff) get started. This year we're not as full of our alumni but still over half of our staff is alumni.”
“The alumni staff makes a huge difference for enrichment and mentor relationships that the staff working with the kids build. And the students get to see someone from their community or school or reservation being successful in college. That just helps them be motivated and see that they can also do it. So, that's one of the big successes of our program, it's that mentor modeling.”
Additionally, in terms of publicizing Gear Up, Phelps continues: “The program is a partnership that is run by a federal grant through the state of South Dakota, the US department of education. Governor Rounds has been very supportive in finding matching money. Since we're a matching grant, every federal dollar we spend has to be matched with a partnership dollar. The state has been very helpful in coming up with $250,000 match for the program. And our schools (24 middle schools, and 14 high schools) and their personnel have always been very supportive not just with the summer piece, because we do stuff through the year in the middle and high schools. So, they've really been an asset as partners to help us generate activity towards early college success and high school graduation.
“As much as we're successful here it's because we have a lot of partners who share the same vision and mission of success for our students and their families. So, it's really important for us to maintain those partnerships, expand them and strengthen them. That's where something like Lakota Funds has really been a valuable asset this year. They've come in and they've taken part in the program that we struggled with, the Financial Literacy side of it. And it brought a lot of resources, people and the vision and focus toward increasing the success of that component of our program.”
“What we know is that when our kids graduate they'll be productive employees who will generate money and salary, so having them understand how to do that and be smart about what to do with their money. Really, it's a path towards expanding the success of our program, years from now when our students have families, careers, jobs. We're really thankful Lakota Funds has come in and helped expand our partnership piece. We're always looking for more partners who want to step in and work with our kids, because I think it not only helps us, it also helps them. It's a mutually beneficial partnership. It's a win/win”.
Lakota Funds Assists businesses through all planning stages
In the process of getting a business off the ground there are several considerations. Business identity, location, taxes, employees, risk, accounting, bookkeeping, banking, purchasing (if retail), customer service, technology, and others that apply to individual enterprises.
In simplest terms the available choices of proprietorship are, Sole proprietorship, Partnership and Corporation. What is the most appropriate type for you requires careful examination. When deciding what business form to adopt the primary considerations are: Who will be accountable, responsible and authorized to own and control the business? Who will be liable for debts and obligations of the business? And who will receive profit distributions and when? Along with that, other considerations include, what the business does, planned growth of the business, and the relationship between you and the other people involved in the business.
For example when asked about their decision to become a corporation Margie Murdock, of Murdock Electric, Inc., said “my husband had sole proprietorship since 1982 and as our sons got older and became interested in the trade, they obtained their electrical contractors licenses and eventually, when our son did some research we found out the advantages of incorporating and in July of 2006 we became a corporation. That way our sons have ownership in the company, they’re able to get shares in the company and thinking of the future they will eventually inherit the company”.
Where you open your business depends on the specific type of service or product involved. Nowadays, many businesses get a start in the home. Later, as the business grows other options will come into play. Finding the right building or location will also take some careful planning. You may have to take into account zoning and location in terms of foot traffic.
For Rosalie Red Elk her decision was to start at home but has her sights set on a bigger space soon: “I’m going to have to get myself a bigger building next. I’ll have to do advertising. I’m going to start out slow, working on my own, and then once I get that building, I think I’ve got some other people that are interested in work and I can get other machines.” She said shortly after purchasing her new quilting machine.
As you delve deeper in the process the issues of other legal matters will come into play and you must take into account taxes and other legalities. You will have to deal with sales tax, income tax and all documents dealing with them. On the reservation it’s a little different from the way businesses run outside. One of the basic items on the to-do list is the Tribal business license, which must be obtained from the OST Department of Revenue. According to Sharon Cuny these licenses “are issued to anyone who is planning to operate a business on the reservation. The only requirements are a South Dakota tax ID number and a zero balance of sales taxes due. The cost of the license starts at $50 and is assessed according to the volume of business”. She adds that “it’s important to note people on the reservation pay only a 4% sales and use tax, which is less than any other communities in the state. People who want to find more information can do a search online for OST Ordinance 92-13”.
In terms of the tribal business license, Murdock commented: “the process was very simple, we just applied and filled out the forms and it was not a lengthy process at all”.
If the enterprise is large enough hired employees come into the picture of the enterprise. The business owner will need to deal with issues of wages, employee relations, occupational safety, etc.
Risk comes in many different forms and to deal with it the business owner will most likely purchase insurance that will keep him/her from losing everything in the case of extreme events. If you’re a contractor bonding will play a part in the everyday matter of running the business.
In order to keep good financial records the business owner will need to have in place a system to keep track of assets and liabilities. In many cases, a professional accountant is the most profitable way to manage the books. This also applies to banking, which goes hand in hand with the accounting side of the business.
If you’re running a retail business, you’ll need to find suppliers to help run your business smoothly. In many cases, you might have to have more than a single source for back up and to keep competitive prices in constant flow.
A rare quality in business seems to be charisma. We all have had experiences with the “grumpy” businessman and likewise, the opposite. So, it pays to develop and cultivate good relations and personal rapport with customers so they will always feel welcome and that they are getting not only a product or service, but also a fulfilling experience from dealing with you.
Presently, it’s hard to conceive a business without a computer or access to the Internet. We’ve become dependent on that medium and as such a modern business owner should take advantage of these tools to enhance his business, along with the specific tools typical of the individual enterprise.
For assistance in all aspects of starting your own business contact Lakota Funds.
Lakota Funds serves tribal members with a business located on (or to be located on) the Pine Ridge Reservation. Loan types include: Micro-loans (under $5000); Business Loans up to $200,000, a Business Line of Credit, and the Credit Builder Loan up to $2500. Lakota Funds also provides one-on-one technical assistance as well as business classes including Financial Literacy and Empowerment Thru Business Ownership. If you have questions or want to register for a class call 605.455.2500, or email, tbrunsch@lakotafunds.org.
Watch for these seminars:
Homebuyer’s Education – 6/24/2010 – 8/5/2010 – 5pm -8pm. Lakota Trade Center. Kyle, SD.
Financial Literacy – 6/26/2010 – 9a - 4p. Pine Ridge College Center, Pine Ridge, SD.
Empowerment Thru Business Ownership – 7/14 - 8/18/2010 – 5p - 8p. Lakota Trade Center, Kyle, SD.
Credit When Credit is Due – 7/10/10 – 9a - 4p. Lakota Trade Center. Kyle, SD.
Successfully Marketing Your Business: what does it take?
When you get your loan from Lakota Funds and become an entrepreneur, you are faced with the task of acquiring customers. How do you spread the word about your new business? How do you reach people to let them know what service or product you offer?
Fortunately, other people have gone before you and are forging a path with tools and ways that may also help you. And perhaps you have ideas of your own. With the emergence of the Internet, advertising and marketing tools have multiplied exponentially. You are not limited to the immediate geographical location of your business. The same product or service you offer locally, can also be marketed worldwide. This, of course, brings up the issue of competition on several levels.
The advertising and marketing field is enormous. There may be as many advertising and marketing methods as there are businesses. In general you can begin with the already established tools and methods others have used in the past. Here are a few starting points.
Marquittee Heathershaw, of Heathershaw Designs, has been in business for 10 years and says that for her, the most effective tools are the newspaper and word of mouth. She adds: “I think my most powerful advertising tool is word of mouth. When you are in business you have to have a lot of self-discipline and when you say you are going to deliver to your customer at a certain time, you have to follow thru with that. No matter what you have to do or where you have to go. That is the way it has to be. That builds good business and you will get repeat customers. Also, having great customer service in terms of being honest and truthful and being able to relate to people of all walks of life. I think my years of working in retail and the training in management and customer service has helped me.”
In many ways, the business owner has to become resourceful and creative with the money budgeted for marketing and advertising. Even using the established advertising tools and methods, you can optimize them to your advantage.
Another example of how these tools can be utilized is demonstrated by Connie Smith of the Lakota Country Times which has been in business since 2004. Connie told us she uses many different ways to advertise her brand such as “print, the internet, word of mouth, regular sales calls in person and by phone, advertising signs on our cars and logo-imprinted shirts to wear.” She adds: “Print and the Internet are most effective, followed by our sales signs and distribution of our sales brochure”.
Finally, she advises: “Don't be afraid to ‘toot your own horn’. It’s okay to be proud of your business, don't be shy, have sales materials with you at all times because you never know when you will come across an opportunity, and most people want to see something in print, it makes your company look more professional”.
The marketing topic is large and crucial to a business. For detailed and in-depth information on marketing, talk to the staff at Lakota Funds, take the training courses and above all, take advantage of the technical support offered. The one-on-one assistance available is one of the most powerful products Lakota Funds offers to clients, providing the support necessary to optimize your possibilities for success.
Lakota Funds serves tribal members with a business located on (or to be located on) the Pine Ridge Reservation. Loan types include: Micro-loans (under $5000); Business Loans up to $200,000, a Business Line of Credit, and the Credit Builder Loan up to $2500. Lakota Funds also provides one-on-one technical assistance as well as business classes including Financial Literacy and Empowerment Thru Business Ownership. If you have questions or want to register for a class call 605.455.2500, or email, tbrunsch@lakotafunds.org.
Lakota Funds Helps Turn a Dream into a Reality: Pics By Suz
Susan Heathershaw has embarked on an adventure, a dream she’s had for a long time; to be a professional photographer, more specificially, a rodeo photographer. Her enthusiasm extends through the idea of providing a service she appreciates; that of family memories, of parents’ pride in their kids and their activities.
For the moment Susan plans to focus on rodeos, selling individual photographs and photo packages on the spot. She’ll be competing with other photographers doing the same thing, but PICS BY SUZ, will make the prints available the day of the event so people can walk out with pictures in hand. She says, “My plan is to take photos at rodeos here on the reservation. I rodeo and barrel race myself. I grew up in a ranching rodeo family. When I go to some bigger barrel races away from here, there is always a photographer to buy pictures from, and that's not offered here. At events here in Kyle, parents want to capture that moment of their kid doing well. I saw an opportunity to fulfill my desire to take pictures so whether I'm competing or someone in my family is competing I’ll have my camera with me.”
“People who come to me will be able to get the pictures right there and then at the event. So there is no waiting for the mail. I'll have my computer and printer, and I'll be able to print photos immediately so the customer can take them home the same day of the event. I'll build a website as well, but that's still a month away.”
“I'm very thankful Lakota Funds was able to help me to reach my dream and I would advise anyone out there who wants to start a business, to come apply. If someone doesn't have the answer, the next person does. They are very knowledgeable here”, Heathershaw volunteers, about her impressions of Lakota Funds.
You can contact PICS BY SUZ by email: picsbysuz@hotmail.com and in the near future, visit Pics By Suz.
Lakota Funds serves tribal members with a business located on (or to be located on) the Pine Ridge Reservation. Loan types include: Micro-loans (under $5000); Business Loans up to $200,000, a Business Line of Credit, and the Credit Builder Loan up to $2500. Lakota Funds also provides one-on-one technical assistance as well as business classes including Financial Literacy and Empowerment Thru Business Ownership.
Empowerment Thru Business Ownership – Wednesdays, May 5-June 9 at Lakota Trade Center from 5 pm to 8 pm.
Financial Literacy – Saturday, May 22 at Lakota Trade Center from 9 am to 4pm