1. Wendy Hanson, Community Impact Director United Way of Southern Cameron County Brownsville, Texas
November 2011

2. A wholly owned subsidiary of Rio Grande Valley Multibank
Southernmost tip of Texas
Border with Mexico
Demographics:
91% Hispanic
53% of children in poverty
Per capita income of $9.700
49% of population over 25 haven’t graduated from high school
Demographers project that the United States will increasingly look like Brownsville. Our present is forecast to become your future.

3. Details Loan Size $300-$1,000 Term 3 month-12 months
Interest Rate and Fees
$20 Administrative Fee & 18% Interest
Qualifications
Employed minimum 3 months
Bank Checking Account
Valid ID & Social Security Card
Minimum Monthly Income of $900
Minimum Age of 18
Loan estimated at 50% of monthly income.
Target Customers
Employees at Companies with over 50 employees.
The luxury of planning – having six months to examine data, reflect, talk to everyone involved and figure out what’s true and what’s not.
One thing the district is doing really well is recovering dropouts, so we had lots of kids who were back in school. It was easy to talk to them and their families.
Zero experience in this type of work. Good because it meant no preconceived notions about situation.

4. No Credit History Needed
No Collateral
No Prepayment Penalties
These are our guiding principles in everything we do.
We assume we know NOTHING and that we want to know as close to EVERYTHING as is possible.

5. The Process
Online application through HR
CLC Coordinator Verifies Employment & Approves Loan
Loan is funded through Direct Deposit & Repaid Through Payroll Deduction
The usual suspects. The district recommended we go straight into strategy development to address the needs of these kids.

6. Progress To Date: Yikes. Started October 3, 2011
Original grant December 2009
Average Loan size: $921
Total 42 Loans Made
3 Employers
Serving 1,530 employees
Yikes.

7. Challenges: Community Loan Center Default Rates
Web-based Vendor
Licensing
Default Rates
Number of Loans and Amount of Money Needed
Unknowns
Students in the 2010 cohort who would not graduate on time had 62% more absences in 8th grade and 55% more absences in 9th grade than students who will graduate on time.
Students in the 2010 cohort who graduated on time passed an average of 3.5 of the 4 TAKS sections as compared to 2.3 sections passed for those who will not graduate on time. On-time graduates complete an average of 3.8 core courses in 9th grade compared to 2.1 courses for those not graduating on time.

9. Thank you