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Win-Win Partners offer a wealth of expert information
about policy issues that affect businesses. These organizations provide
a variety of resources including research, policy briefings, business
membership surveys, and status updates on policy issues.
Click on any of the following issues to learn more:
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Welfare Reform
Individual Development Accounts (IDAs)
Savings for Working Families Act
New Markets Legislation
Education Reform
First Accounts
Community Reinvestment Act
American Small Business Emergency Relief
and Recovery Act |
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Welfare Reform
Welfare reform legislation became law back in 1996, fundamentally
changing America's welfare system. For many years, companies nationwide
have hired individuals from "Welfare to Work" to fill certain
positions and secure tax credits. In June 2003, the Welfare Reform
Extension Act of 2003 was passed, extending current policies and funding
levels through September 2003. In October, the current legislation
was extended for an additional six months. It is expected that Congress
will consider a larger reauthorization package in 2004. Stay on top
of this important issue by getting the latest information from these
Win-Win Partners:
Committee
for Economic Development (CED)
Jobs
for the Future
National
Congress for Community Economic Development Current Legislation |
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Individual
Development Accounts (IDAs)
Savings for Working Families Act
The Savings for Working Families Act provides for the establishment
of Individual Development Accounts (IDAs). IDAs are matching accounts
for low-income individuals, wherein the government will match contributions
to deposits. While individuals can save as much as they like, matching
federal funds currently have a $2,000 lifetime cap. Efforts are underway
to change this policy to $500 per year, with no lifetime cap. Similar
to a 401(k), IDAs make it easier for low-income families to save,
build assets, and enter the financial mainstream. Today over 500 IDA
initiatives exist in communities across the country. 34 states, Washington,
D.C., and Puerto Rico have all passed some form of IDA legislation;
several states have legislation pending, while only six states have
no known IDA activity.
There are currently four bills in Congress with pending IDA legislation,
the most active of which proposes to amend the Assets for Independence
Act. Under this bill, the IDA demonstration program would be extended
through 2008 at $25 million per year. This bill (HR 7) originated
in the House, was passed in September 2003, and now awaits consideration
in the Senate.
After nearly passing three years in a row, the Savings for Working
Families Act was reintroduced in the Senate in February 2003 as part
of a broad charitable giving bill known as the Charity, Aid, Recovery
and Empowerment (CARE) Act (S 476). In April 2003, the CARE Act was
passed by the Senate and now awaits committee referral in the House.
Under the proposed CARE Act, $450 million would be made available
in IDA tax credits and would allow for the creation of up to 300,000
new IDAs.
Long thought too small a sector to serve profitably, financial services
institutions are now seeking out this previously untapped market,
creating opportunities to provide new products and services to such
accounts. IDA programs grant individuals and families an opportunity
to save and build assets, buy a home, fund post-secondary education,
even start a small business. Find out from these Win-Win Partners
how financial services companies can penetrate this overlooked market
and help low-income families build assets:
Corporation
for Enterprise Development
National
Congress for Community Economic Development NCCED HR 2160
D2D
Fund |
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New
Markets Legislation
New Markets Tax Credit (NMTC)
Tax credits are more valuable than tax deductions because they lower
tax liability by the full dollar amount, rather than simply reducing
taxable income. Recent New Markets Tax Credit legislation allows investors
to receive these tax credits in return for cash investments in community
development organizations. Community development organizations invest
these proceeds in low-income communities, through such vehicles as
community-based businesses.
In March 2003, the U.S. Treasury awarded the first round of New Markets
Tax Credits. Applications for the second round of NMTC allocations
were due in September 2003, and the Fund expects to announce its decisions
in March 2004.
A new organization, New Markets Advisors, helps investors navigate
new markets tax credit opportunities. Qualified community development
entities may be able to use New Markets Tax Credits to enhance return
to equity investors by five to seven percent a year (as much as 30%
of the net present value). As specialists in developing economically
underserved communities, members of New Markets Advisors are ideally
positioned to channel new investment spurred by the tax credit into
profitable development opportunities.
Six organizations comprise the New Markets Advisors: Community Development
Venture Capital Alliance, The Enterprise Foundation, Local Initiatives
Support Corporation, National Community Capital Association, National
Community Investment Fund, and the National Congress for Community
Economic Development. These New Markets Advisors can help investors
to access the billions of dollars available to finance almost any
type of business, from manufacturing plants to charter schools. Learn
more about the win-win benefits of the New Markets Tax Credit at New
Market Advisors and/or visit these Partners and other organizations
for all the latest developments in New Markets legislation:
Community
Development Venture Capital Alliance
(www.cdvca.org, click on New Markets Venture Capital)
LISC
National
Community Capital Association
National
Congress for Community Economic Development
Shorebank
Advisory Services
Enterprise
Foundation
National
Community Investment Fund
Learn more about Community Development Finance Institutions
(CDFIs) through the CDFI Coalition. |
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Education
Reform
Creating a literate, well-trained workforce with cutting-edge
knowledge of their field of work is a top priority of the federal
government, businesses, and Win-Win Partners. Education reform
spans a wide spectrum of issues, ranging from basic K-12 education,
to family literacy, school-to-work, and welfare-to-work programs.
Each year Congress and Senate introduce legislation to improve
America's education system and develop a skilled labor
force. Learn more about the roles of employers in linking school
and work, connecting students to our changing world, and other
key policies that affect education reform from these win-win
organizations:
Committee
for Economic Development
The Conference
Board
Jobs
for the Future
National
Association of Manufacturers |
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First
Accounts
As many as 10 million U.S. households operate outside the banking
system. New technologies combined with funds from the Consolidated
Appropriations Act, 2001 and the Department of Transportation
and Related Agencies Appropriations Act, 2001, are now making
this untapped market a profitable one for banks and other financial
institutions.
The U.S. Treasury Department received just under $10 million
to form partnerships with banks and other organizations that
encourage financial institutions to create banking opportunities
for the working poor without bank services access. The Treasury
Department announced 15 First Accounts grants on May 1, 2002.
The 15 awards totaling $8,357,234 will assist 35,445 unbanked
low- and moderate-income individuals in opening accounts at insured
depository institutions.
Bank accounts are vital first steps for working families with
little or no assets to begin establishing credit, start saving
for a first home, pursue higher education, or start a small
business. Additionally, financial literacy shapes a more receptive
target audience for banking products and services, thereby creating
opportunities for banks to profit. The money otherwise spent
on high-cost check-cashing services, or expensive short-term
credit, can go into bank accounts and cover traditional banking
products and services. The Center for Community Capitalism and the
U.S. Department of the Treasury can provide more information
about this important legislation:
The
Center for Community Capitalism
U.S.
Department of the Treasury |
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Community
Reinvestment Act
The Community Reinvestment Act is intended to encourage depository
institutions to help meet the credit needs of the communities in which
they operate, including low- and moderate-income neighborhoods. Federal
Reserve Board Chairman Alan Greenspan alluded to the mutual benefit
of the CRA to consumers and banks when he said, "CRA has helped
financial institutions to discover new markets that may have been
underserved before…[The CRA has] very significantly increased
the amount of credit in communities." The CRA has also encouraged
a dramatic increase in homeownership by low- and moderate-income individuals.
Moreover, the CRA has accomplished this without increasing paperwork
burdens on lenders. Stay informed on policy developments relating
to CRA by visiting these Win-Win Partners' sites:
Corporation
for Enterprise Development
National
Community Capital Association
Neighborhood Reinvestment
Corporation |
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American
Small Business Emergency Relief
and Recovery Act
The Small Business Emergency Relief and Recovery Act extends
a lifeline to small business owners devastated by ripple effects
of the September 11th attacks and the resulting economic slowdown
wrought and compounded by them. The bill also provides additional
Small Business Administration low-interest loans to qualified
businesses previously not offered an adequate safety net under
existing SBA programs. Please visit this Win-Win Partner's
site to learn how your business can benefit from this legislation
and to remain informed on the latest progress:
U.S.
Chamber of Commerce |
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