At its core, poverty is a condition of not having appreciating assets, and a budget that’s much too small to sustain a family. Unlike others who propose solutions to these problems, SPIN develops solutions based on discussions with our families about what would really work for them. We are currently implementing the following ideas:

• Basic Banking Access
• Emergency Loan Fund
• Asset Development
• Just One
• Working Cars for Working Families

San Diego County, like other growing metropolitan areas, abounds with check-cashers, payday lenders, liquor stores and pawnshops.  These are the “banking” establishments of the poor, who are often turned away from mainstream banks because of poor credit history or minimum deposit requirements. As a result, poor people are losing their hard earned money to pay sky-high interest rates---often as high as 400%.

Partnering with the Caring Council of San Diego, SPIN formed the San Diego Coalition for Fair Banking, a group of more than 140 organizations and individuals working toward banking access for low-income customers. After years of collaboration with local banks, some banks proceeded to provide basic banking services for low-income customers. SPIN is leading the outreach efforts to enroll low-income customers in basic bank deposit services.

Presently three banks offer an essential direct deposit account for low-income customers who cannot qualify for regular bank accounts due to poor credit history or prior problems with bank accounts. This special account provides basic banking access with little risk of overdraft. It saves money, because the accountholder can cash checks free and pay bills with free money orders. The accounts have saved families an average of $200 per year. Some of the account features include:

• No monthly fee with direct deposit (very low monthly fee otherwise)
• No minimum balance ($10 initial deposit to open most accounts, and you can spend them down to less than $1 and they will not be closed)
• 3 free money orders per month
• Free check cashing (banks may hold unfamiliar checks for a few days until they clear)
• ATM card (Debit Cards available to those who qualify)

Low-income families lose precious assets when they are forced to turn to high-interest loans when emergencies arise. They often pay as much as 400% interest for loans of less than $500 for emergency car repairs, school expenses, or medical costs. SPIN parent leaders proposed a no-interest loan fund that would allow borrowers to meet their short-term emergency needs with no interest charges.

SPIN developed the Emergency Loan Fund (ELF), to which active SPIN parents may apply for loans up to $300. Funded by yard sales staffed by parents, silent auction, individual contributions and by matching funds from San Diego National Bank, the ELF is the first loan fund of its kind in the county, planned and implemented by low-income parents through their own organization.

SPIN parents are working together to develop a model market in which they can learn how to make, merchandise and sell their homemade food and handmade crafts in a SPIN Marketplace. The goal of the marketplace will be to aggregate the profits from sales and place them in an Asset Development Fund (ADF). This fund will grow and in future years, parents who participated in the market over a period of time will be able to withdraw their funds for specific purposes such as education, downpayment on a house, starting a small business, or purchase of a car.

Unlike other micro-business models, SPIN parents will not have to borrow money to buy materials or pay for their market participation. Their contribution will be the "sweat equity" they invest by planning, developing and operating the market, as well as learning how to be a more productive participant. SPIN's market team already has conducted two test markets, with a third scheduled for early 2009. Call us if you would like to know more about this innovative concept.

Many times when we work with parents, we realize there is just one thing they need in order to keep traveling the road to self-sufficiency.  It can be a pair of shoes for a job interview or a cap on a front tooth for a front-desk job.  We at SPIN believe we can meet a great many of these needs by asking each retail store and service provider in San Diego County to donate “just one” per year of whatever item or service they normally sell their customers.

If you would like to participate in this program, please contact the SPIN office.

Working Cars for Working Families

Dr. Pat Washington Dr. Linda Shaw Sam Calvano Home Loans Nick Urban Sam Halpern

This program is in its infancy, but it strives to find donors of working vehicles who will donate their car to SPIN so we can transfer ownership of the vehicle to low-income working people in need of private transportation.  To date, we have connected five donors with five working parents who were faced with loss of jobs when their cars broke down. Donors may claim full fair market value as a tax deduction.

Thank you to our donors who have already helped SPIN parents gain reliable cars.

If you would like to find out more about this program, please contact the SPIN office.

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