Opportunity is for All

No single entity can solve the multilayered set of challenges that confront vulnerable residents across the Mid South. That’s why in addition to making equity and collaboration priorities in its own programmatic activities, HOPE works to ensure that these principles are reflected in government policy, in the allocation of public resources, and in the practices of institutions that affect the lives of those we serve.

Towards this end, in 2016 HOPE helped to spearhead a public-private-philanthropic partnership that will inject more than $400 million into America’s most impoverished communities; focused attention on abusive financial practices in the Mid South and worked to shape federal payday lending rules; and made sure that voices from the Delta were included in a national effort to increase mobility from poverty.

Community Facilities Re-lending Program / Uplift America

In September 2016, a Congressman and representatives of two U.S. Senators, the U.S. Undersecretary for Rural Development, the Federal Co-Chair of the Delta Regional Authority, along with leaders from national banks and foundations, as well as other dignitaries converged in the small town of Fayette, Mississippi to announce HOPE as one of the 26 groups approved to participate in the new USDA Community Facilities Re-lending Program. Through this program, 26 community development financial institutions (CDFIs) and other lenders have access to more than $400 million in low-cost capital to finance hospitals, schools, food hubs, and other nonprofit and municipal facilities. The announcement capped two years of advocacy by HOPE and a small coalition of organizations from Appalachia, the Colonias, and Indian Country that had been working to increase investment in persistent poverty counties.

The formulation of the program was not without challenges. Because the CDFIs would be re-lending taxpayer funds, they needed to insulate the government from loan losses early in the program. Additionally, the CDFIs needed to increase their capacity to absorb and deploy these new resources.

To overcome the first challenge, CDFI leaders and the USDA secured a $100 million credit facility from Bank of America to guarantee repayment during the first five years of the program. The same partners overcame the second challenge by convincing philanthropic organizations to create the Uplift America Fund. Managed by the Mary Reynolds Babcock Foundation, the Uplift America Fund aggregated $24 million from several foundations to make grants designed to bolster the ability of CDFIs to undertake the new program.

The racially and geographically diverse nature of the coalition of development organizations that came together to lead this effort is noteworthy. Collectively, coalition members bring a high level of political and reputational strength that benefits policy makers, funders, bankers and other stakeholders. Moreover, the USDA Community Facilities Re-lending Program/Uplift America Fund illustrates the power of collective action and advocacy.

CFPB Meetings in Little Rock and Memphis 

The Mid South states have the nation’s highest rates of underbanked households, those that rely on predatory financial products and services. At the same time, the Mid South states are home to some of the nation’s weakest consumer protection laws.

In June, the Consumer Financial Protection Bureau’s (CFPB) Community Advisory Board met in Little Rock, Arkansas, where during a public hearing the board and the Bureau’s senior leadership heard from local advocates about the rise in predatory auto lending. While the CFPB representatives were in Little Rock, HOPE facilitated visits to several area
Civil Rights locations, including historic Central High School. The Little Rock events were followed by a Town Hall meeting in Memphis hosted by HOPE.

During the Town Hall discussion, CFPB Director Richard Cordray discussed the Bureau’s proposal for the first-ever rules to govern payday lenders and small dollar loans, and heard several participants speak passionately about the need for greater consumer protections.

US Partnership on Mobility from Poverty

The US Partnership on Mobility from Poverty is a collaborative effort aimed at discovering permanent ladders of mobility to help people climb out of poverty. Funded by the Bill & Melinda Gates Foundation, and managed by the Urban Institute, the Partnership consists of 24 leading experts, advocates, and academics from across the country, including HOPE CEO Bill Bynum.

The group is working to identify breakthrough solutions that can be put into action by philanthropic organizations, practitioners, and the public and private sectors.

In October, HOPE hosted the Partnership in the Mississippi Delta, where group members ate lunch with residents of Moorhead, Mississippi, and later participated in a roundtable discussion with area experts in issues such as health, education, housing and banking. As a result of this discussion, Partnership members walked away from the experience with a greater appreciation of the unique factors that affect economic mobility in rural communities in the Deep South.