HOPENotes
Author: Mallory
Get all the latest news about products, services, and programs. Printed copies are distributed in our quarterly statements and available online with your e-statements or at our local branch locations.
Dear Friends,
Since the onset of the pandemic, HOPE played a leading role in efforts to secure resources to assist financially fragile and historically underserved communities that were hit hardest by the ensuing economic crisis. These efforts resulted in $27 billion for use by community development and minority lending institutions.
In December, during an event commemorating the founding of the Freedman’s Bank, an institution created after the Civil War to provide former slaves with access to financial services, Vice President Kamala Harris highlighted HOPE’s role when she and Treasury Secretary Janet Yellen announced investments totaling nearly $9 billion in community development and minority depository institutions to support communities that have been disproportionately affected by the pandemic.
Few places need these resources, like the communities served by HOPE. Treasury’s investment in HOPE affirms this and is a testament to a reservoir of trust, expertise, and alliances 27 years in the making and to the steadfast support of friends like you.
Every dollar of the $88 million Treasury investment will support $8-10 in deposits, which will position HOPE to dramatically expand our service to homebuyers, small businesses, underbanked families, and communities that lack access to the financial tools needed to prosper. To this end, if you are not a Hope Credit Union member, I invite you to join us today and urge you to consider making a Transformational Deposit. These resources will support people like Tellisha Crawford, highlighted in this report, whose auto loan enabled her to support her family.
Again, thank you for supporting HOPE and those we serve. We look forward to doing great things together in 2022.
With gratitude
Bill Bynum
CEO, HOPE
Investing in Prosperity
In 1994, HOPE made its first small business loan in Hughes, Arkansas. Fast forward to 2021 and HOPE continued to support investment in this Arkansas Delta town. Local resident Lincoln Barnett was looking to purchase an investment property to generate additional income. He found a duplex, however, he lacked a lender to finance the purchase of it. While Barnett had an established credit history, he did not have a relationship with another financial institution. His realtor suggested he reach out to Hope Credit Union. Barnett contacted the team in West Memphis where he found the loan process seamless. “The HOPE staff was accommodating in the loan process, and they explained everything as we went along.” Barnett recently welcomed his tenants home. After closing the mortgage loan, Barnett received numerous offers from other lenders in the mail but rejected them, insisting on banking with HOPE.
Lending A Hand Where It is Needed
Tellisha Crawford, a recruiter for Goodwill, had always dreamt of owning a home. Crawford and her husband wanted to create a loving environment for their two adopted children. Mounting medical bills, other debts and a low credit score, however, prevented her from securing a mortgage. Then, she learned about Hope Credit Union through a success coach during orientation at Goodwill. With the introduction made, she approached HOPE’s team in Biloxi, Mississippi. HOPE staff reassured Crawford that they would help no matter her situation. A close look at her finances showed that she could lower her monthly debt payments and boost her credit score by refinancing her auto loan. After HOPE closed the loan, she found herself in a situation where she qualified for the mortgage and shared “I believe in giving a hand up and not a handout… HOPE lifts its members up.”
Bynum Recognized with Prestigious Heinz Awards for the Economy
In November, HOPE CEO Bill Bynum was recognized as the co-recipient of the 26th Annual Heinz Awards for the Economy. Mr. Bynum and HOPE were recognized for catalyzing over $3 billion in community development impact and responding to the needs of people facing economic distress during times of crisis. Teresa Heinz, Chair of the Heinz Family Foundation, remarked, “The Heinz Awards honors Bill for shining light on and addressing the toll that decades of underinvestment, neglect, predatory lending and a lack of access to basic financial services has had on those living in the rural Deep South. Through HOPE’s program of resources and services, Bill has crafted a proven model to stop this trajectory of entrenched poverty and create a new future for generations of Americans, in the South and all across rural America.” Created to honor the memory of the late U.S. Senator John Heinz, the Heinz Awards honors excellence and achievement in areas of great importance to Senator Heinz.
Read coverage of the award in the Daily Yonder.
NIKE, CDFI Leaders Reflect on Company’s Decision to Invest in Opportunity
On December 16, 2021, Opportunity Finance Network President and CEO Lisa Mensah joined Hope Credit Union CEO Bill Bynum, along with Dane Spurill, Head of Global Cash and Banking at NIKE, for the Hope Economic Mobility Forum at the Mississippi Civil Rights Museum in Jackson, MS. During the conversation, the leaders spoke about the importance of long-term, sustainable relationships between corporations and CDFIs and the impact such relationships can have on changing economies. Bynum remarked on the impact of NIKE’s investment in HOPE. He said, “We take seriously that we are owned by our members. A majority of our members are women. A majority of our members are people of color. If we don’t do right by them, then we are out of business, so we’re proud to be able to represent them, to serve them and also to take their issues to places where they don’t have access to… It’s not just affecting people in the Deep South, it’s affecting economically underserved communities across the country. When you equip people with the tools, they can do anything that anyone else can, and they just need the resources.”
Watch the conversation on HOPE’s YouTube page.
HOPE Adds Depth to Board of Directors
During its December board meeting, the Hope Enterprise Corporation Board of Directors expanded to 21 members with the appointment of Mauricio Calvo, Rebecca Dixon, Felecia Lucky and Judy Reese-Morse. All bring significant expertise in community development, economic justice and racial equity to HOPE’s oversight. Over half of the board members in service to the organization are people of color and nearly half are women.
Mauricio Calvo serves as the executive director of Latino Memphis, where he leads a team that connects with the private, public and philanthropic sectors to build an abundant Latino middle class community. These goals are achieved by connecting Memphis Latinos to education and career advancement opportunities and needed services in a safe and encouraging environment. Mr. Calvo also serves on the Hope Credit Union Board of Directors.
Rebecca Dixon is the executive director of the National Employment Law Project (NELP), a leader in federal workers’ rights advocacy and a respected voice at the intersection of labor and racial equity. Mrs. Dixon is also a former Senior Policy Analyst for Hope Policy Institute. Her commitment to economic justice at the intersection of race, class and gender stems from her experiences growing up in rural Mississippi.
Felecia Lucky is the President of the Black Belt Community Foundation (BBCF) in Selma, Alabama. The foundation was established to support community efforts that contribute to the strength, innovation and success in Alabama’s 12 poorest counties. At the foundation, Mrs. Lucky works to transform the Black Belt through investment in the environment, health and human services, education, youth, arts and culture, community and economic development.
Judy Reese-Morse is the President and CEO of Urban League of Louisiana. Mrs. Reese-Morse brings vast experience in executive-level work within government, the not-for-profit and media sectors. In addition to serving as Deputy Mayor for the city of New Orleans under the Landrieu Administration, she also worked on Capitol Hill for Congresswoman Lindy Boggs, and as Chief of Staff for Louisiana Lieutenant Governor Mitch Landrieu.
Groundbreaking Investment Announced
Vice President Kamala Harris and U.S. Treasury Secretary Janet Yellen announced historic levels of new funding for community financial institutions to significantly increase lending to businesses owned by people of color and low-income communities through the Emergency Capital Investment Program (ECIP). ECIP makes long-term, very low-cost capital available to reinvest in communities facing high levels of economic distress. Through the program, Hope Credit Union, a Black and women-owned financial institution headquartered in the Deep South, was awarded $88 million – the largest community development investment in the organization’s 27-year history.
Read coverage of the ECIP announcement in the American Banker.
New Report Highlights Racial Disparities in Arkansas Housing Market
The Hope Policy Institute recently released a report that found a 26-percentage point gap in Black and white homeownership in Arkansas — larger than the gap experienced at any point during the 2008 housing crisis. Similar gaps by race were identified among renters with 40 percent of Black renters behind on rent in contrast to just 15 percent of white renters. COVID-19 exacerbated the challenges experienced by both homeowners and renters of color. Recommendations to address the conditions included the equitable distribution of COVID relief dollars, the extension of down payment assistance, the use of non-traditional credit in underwriting and expanded enforcement of fair housing laws.
Read a summary of the full report.
Deep South Organizations Call on CFPB to Enact Strong Fair Lending Rules for Small Businesses
More than 40 small businesses, community-based organizations and mission-based lenders across the Deep South urged the Consumer Financial Protection Bureau (CFPB) to issue strong fair lending rules to ensure small businesses owned by people of color and women have fair access to the capital they need. HOPE also submitted detailed research and comments to further strengthen these collective recommendations. As noted in the letters to the CFPB, “Small businesses owned by people of color and women drive significant economic activity and job creation, which is furthered by fair access to credit on fair terms. Robust data collection and transparency in lending will give women and people of color more opportunities for financial stability and strengthen the fight to close racial and gender disparities in banking that have existed for far too long.”
Read a summary of the Public Comments and access the letters.
Netflix Launches Series on Closing the Racial Wealth Gap
Netflix recently released a new video series, Banking on Us! This 3-part limited series unpacks the systemic barriers facing Black families and business owners to building wealth and interviews with HOPE members on the steps they took to overcome those obstacles. To date, over 18,000 people have viewed one of the three episodes.
Dominique Lumpkin, HOPE Member Owner, shared her story on how HOPE provided her with a pathway to homeownership. “To be a homeowner and a person of color, it’s the first step in generational wealth. It’s one of the greatest accomplishments I’ve ever made.” Another Member, Colby Midget of Premier Flowers, reflected on her experience as a Black woman business owner. She said, “At one point we were closed due to COVID, due to the pandemic, and HOPE helped us to stay in business. Black women entrepreneurship, it means freedom.”
This series continued the partnership between Netflix and HOPE. In June 2020, Netflix made a $10 million Transformational Deposit in Hope Credit Union as one of the first investments in a $100 million commitment to build economic opportunity in Black communities. The investment in HOPE, among the first made by Netflix in Black owned financial institutions through the initiative, is supporting the financing of more than 2,500 entrepreneurs, homebuyers and consumers of color.
Watch all three episodes Banking On Us! episodes.
Download 2021 Fourth Quarter Report.
A $3.5 million Open for Business Fund grant will help small businesses recover; a $5 million patient capital loan will provide financial services to underserved communities
JACKSON, MISS. – Dec. 14, 2021 – As communities face ongoing challenges amid the COVID-19 pandemic, Wells Fargo announced $8.5 million in funding to support small businesses and advance economic recovery in the Delta and across the South. The company is providing flexible capital to Hope Enterprise Corporation (HOPE), a 501(c)(3) and a certified Community Development Financial Institution, through an Open for Business Fund grant, and a patient capital loan to help people in rural and economically distressed areas access flexible, low-cost loans and financial services.
(more…)
Groundbreaking investment will forever change scale and reach of credit union into underserved communities
WASHINGTON, D.C. — Today, Vice President Kamala Harris and U.S. Treasury Secretary Janet Yellen announced historic levels of new funding for community financial institutions to significantly increase lending to businesses owned by people of color and low-income communities through the Emergency Capital Investment Program (ECIP). ECIP makes long-term, very low cost capital available to reinvest in communities facing high levels of economic distress. Through the program, Hope Credit Union, a Black and women-owned financial institution headquartered in the Deep South, was awarded $88 million – the largest community development investment in the organization’s 27-year history. The investment will forever change the scale and reach of Hope Credit Union into underserved communities. In response to the announcement, HOPE CEO, Bill Bynum, released the following statement:
(more…)
PITTSBURGH, November 18, 2021 — The Heinz Family Foundation today named fair workplace policy advocates Dina Bakst, J.D., and Sherry Leiwant, J.D., co-founders of A Better Balance, and William (Bill) Bynum, founder and CEO of HOPE, a Jackson, Mississippi-based community development financial organization, recipients of the prestigious 26th Heinz Awards for the Economy.
(more…)
Dear Friends:
On any given day, more than two-thirds of HOPE’s members have less than $1,000 in their credit union accounts. The low balances underscore the steep hill Deep South families must climb in order to survive from paycheck to paycheck, and the difficulties HOPE faces in fueling community development in wealth-starved communities. While traditional banks tap into an abundant source of low cost deposits in affluent neighborhoods, HOPE must import capital to finance everything from auto repairs, promising entrepreneurs, families seeking to become new homeowners, not to mention vital facilities like schools, grocery stores and healthcare clinics.
To address this need, in early 2020 we launched the HOPE Transformational Deposit program. Through October 2021, more than 350 individuals and businesses have made Transformational Deposits totaling more than $115 million to help close opportunity gaps in the Deep South, and finance companies like A Time to Spring Forward, the education consulting company, as profiled in this report.
As we approach the holiday season and end of an eventful year, we thank you for your generous support, and invite you to continue helping us level the financial playing field by making a tax-deductible contribution to HOPE, and by joining our growing legion of Transformational Depositors.
With gratitude,
Bill Bynum
CEO, HOPE
Helping Businesses Spring Forward
With experience in both human resources and education as a math teacher, instructional coach and assistant principal, Spring Mercadel saw an opportunity to knit the two bodies of work together and launch her own venture. Mercadel’s passion for education inspired her to create change in her community during a time of virtual learning. The result was A Time to Spring Forward. A Time to Spring Forward provides corporate training, organizational and leadership development needs to small businesses as well as curriculum and content development services to educational leaders. She turned to HOPE for the financing necessary to start her small business and was approved for a Power of HOPE Business Loan. Power of HOPE loans were developed to meet the working capital expenses of very small businesses by providing them with low-interest rate loans up to $10,000. When asked about the impact of the loan, Mercadel referenced the excitement of being able to purchase office equipment and hire an employee. More importantly, the loan gave her an opportunity. “HOPE is committed to helping the community, they will take a chance on those with a vision.”
Driving Towards Brighter Days
In December of 2019, Candace Hasan was hit by a drunk driver without insurance. The accident totaled her car, and after the insurance payment from her company, she still owed a balance on the vehicle loan. As a full time realtor, replacing her vehicle as quickly as possible was critical. Unfortunately, a series of emergencies spanning a number of years, negatively impacted her credit. With few options, she took out a predatory loan with a 23% rate. Shortly thereafter, Ms. Hasan joined Hope Credit Union. The team in the Biloxi branch worked with her to rebuild her credit and in August 2021, she qualified to refinance the predatory auto loan. As a result, Ms. Hasan is saving over $5,000 in interest payments and her car payment was lowered by $126 a month. To stick by herself, Ms. Hasan sticks with HOPE for her capital assurances. She routinely refers clients to HOPE for mortgages, business accounts and credit building loans and services.
Collaborating to Tackle Food Deserts in the Mississippi Delta
The Mississippi Delta Online Grocery Delivery Program Is a community-led grocery delivery initiative. Located in the Drew Armory complex, the program will offer the residents of the city and surrounding rural communities an affordable and convenient way to access fresh, healthy food for their families. This model is not only a more cost-efficient and sustainable approach for lower-population towns than a traditional grocery store, it also directly addresses the transportation and safety challenges the coronavirus crisis has made more apparent.
Working in partnership with local retailers and suppliers, this delivery program will increase access to affordable, healthy, fresh food for residents who are unable to shop for themselves due to transportation, time or health restrictions. Additional complementary health care services within the facility will include health screenings, nutrition education, cooking classes, meal planning and budgeting. Mississippi State University’s Department of Food Science, Nutrition, and Health Promotion will offer programming support and the University of Mississippi’s Telehealth Center of Excellence will utilize the building as a hub for their new Veggie Prescription Program initiative. These services should also add to the “longevity” of the delivery program. HOPE provided additional funding for the program through the HOPE Catalyst fund.
Charter Communications Investment Expands Opportunity for Diverse Businesses
In August, HOPE joined Charter Communications in Louisville, KY to announce the launch of a small business loan fund targeting capital to entrepreneurs of color. The company seeded the loan fund with a $3 million investment to expand opportunities in Kentucky, Tennessee and Alabama. Charter Communications is a broadband and cable provider serving over 31 million customers in 41 states. To determine eligibility and to start the application process for the program, interested parties will find more information on HOPE’s website by clicking here.
PayPal Releases Closing the Racial Wealth Gap
HOPE Transformational Depositor, PayPal, has released the video, “Closing the Racial Wealth Gap.” The video shines a light on the organization’s $535 million commitment to close the gap and lifts the voices of its partners in the work. In June, PayPal made a $10 million Transformational Deposit in Hope Credit Union as part of this effort. Both HOPE CEO, Bill Bynum, and HOPE Member-Owner, Dion Prater, were profiled. We invite you to view the video below and share it with your networks. Today the racial wealth gap between Black and white households is as wide as it was in the 1960s. Read coverage of the investment here in Fortune Magazine.
Credit Union Advocates Mobilize for Equitable Access to ECIP
Recently, HOPE working with community development credit union advocates successfully mobilized to convince the National Credit Union Administration to issue updated guidance that enabled credit unions to take full advantage of the U.S. Treasury’s Emergency Capital Investment Program (ECIP). ECIP was created by Congress late last year to provide community development credit unions and banks with long term (30 year), low cost capital to help businesses, homeowners and individuals recover from the economic crisis.
NCUA’s turnaround was welcome news following an initial ruling that limited ECIP investments in credit unions to 15 years, an action that HOPE estimates would have prevented nearly six million people, disproportionately people of color, from benefiting from the program. In addition to working with credit union advocates, HOPE engaged members of Congress, NCUA, the media and other stakeholders to underscore the importance of ensuring that credit unions had full and equitable access to this important program.
Organizations Led by People of Color Underrepresented in NMTC Awards
A new report from Hope Policy Institute highlights the impact of the New Market Tax Credits (NMTC) in the Deep South as well as other persistent poverty areas and communities of color. The potential of the NMTC program cannot be fully realized until racial disparities within the program are addressed. From 2012 to 2020, organizations led by people of color were awarded 11% ($3.7 billion) of the total NMTC allocations compared to the 89% ($29.5 billion) awarded to white-led organizations.
Read a summary of the report on the HPI Blog.
CFPB Advances Fair Lending Rules for Small Businesses
The Consumer Financial Protection Bureau (Consumer Bureau) took a significant step towards a fairer marketplace for small businesses. The Consumer Bureau released its proposed framework for requiring that lenders provide transparent data about their lending to small businesses as well as businesses owned by women and people of color. Congress mandated that the Consumer Bureau implement this framework under section 1071 of the 2010 Dodd Frank Consumer Bureau and Wall Street Reform Act. HOPE engaged with the Consumer Bureau during the early stages of the proposal’s development, including serving on a panel of small lenders to provide feedback and guidance on the development of the proposed rules. The Consumer Bureau is seeking public feedback on the proposed rules through January 8, 2022.
Join us on December 2, at 1 p.m. CST, for a webinar hosted by the Hope Policy Institute to learn more about how this opportunity and you can have a role in adding your voice to the effort to ensure fair lending for small businesses in the Deep South. https://us06web.zoom.us/webinar/register/WN_d6igXaIPQ_WACLnFLaW4Uw
Thought Leadership
Around the country, HOPE leaders continued to provide thought leadership on a number of issues facing the community development industry. Links to publications and webinars where HOPE’s perspective was shared over the last quarter are available below.
Download 2021 Third Quarter Report.
“We applaud the actions taken by the NCUA Board of Directors to empower credit unions to fully participate in the Emergency Capital Investment Program. By allowing low-income credit unions to accept 30-year ECIP funding, more than six million additional homeowners, entrepreneurs and individuals will be able to access the financial resources needed to climb the economic ladder and build intergenerational wealth. This decision is particularly significant for minority credit unions that have historically lacked the capital needed to grow – despite playing a vital role in the economy by filling financial service gaps for people of color, the nation’s emerging majority. We look forward to continued work with the NCUA to ensure these resources reach the people and places that need them most.”
(more…)
On October 1, 2021 the African American Credit Union Coalition, the National Association of Latino Credit Unions and Professionals and Hope Credit Union sent a letter urging the National Credit Union Administration to address the harmful effects of a recent rule that limits the participation of credit unions in pandemic response for communities of color.
(more…)
Seasoned Professional Expands HOPE’s Community & Economic Development Efforts
BIRMINGHAM, AL — Today, Hope Enterprise Corporation / Hope Credit Union (HOPE) announced Brandon Pettagrue has joined the organization as Senior Vice President of Community and Economic Development (CED) for the state of Alabama. Based in Birmingham, Mr. Pettagrue brings nearly two decades of American and international banking expertise to the organization, where he will oversee the sourcing, structuring and completion of complex and high impact projects. In that capacity, he will leverage a variety of strategies, including the New Markets Tax Credit program, Opportunity Zones and federal grants to increase healthy food and community facility access.
(more…)
Hope Policy Institute Report Details How New Markets Tax Credits Generates Billions in Low-Income Communities in the Deep South
JACKSON, MS – Hope Enterprise Corporation’s (HOPE) investments in projects using federal New Markets Tax Credits (NMTC), a Treasury Department program geared to increase economic development in under-resourced communities, are projected to generate $5.1 billion in private sector investment over the next 20 years. Consistent with its community development mission, HOPE focuses its NMTC investments on projects, such as health care and education facilities, that promote economic mobility in distressed communities, leveraging an extensive network of local relationships.
(more…)
HOPE Response to Historic Step by the CFPB
Today, the Consumer Financial Protection Bureau (Consumer Bureau) took a significant step towards a fairer marketplace for small businesses. The Consumer Bureau released its proposed framework for requiring that lenders provide transparent data about their lending to small businesses and minority and women owned businesses. Congress mandated that the Consumer Bureau implement this framework under Section 1071 of the 2010 Dodd Frank Consumer Protection and Wall Street Reform Act, the overhaul reform legislation passed in the wake of the 2008 financial crisis. HOPE engaged with the Consumer Bureau during early stages of the proposal’s development, including serving on a panel of small lenders to provide feedback and guidance in the development of the proposed rules. The Consumer Bureau will seek public feedback on the proposed rules for 90 days following their publication in the Federal Register.
(more…)
