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ACTION Speaks Louder
Local Nonprofit Puts Stimulus Money to Work
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“Wi
I
're creating a new animal in a
short period of time," says Gwen
O'Looney of the micro-enterprise
development work underway at ACTION, Inc.
The former Athens mayor is managing a Si.2
million American Recovery and Reinvestment
Act grant that bolsters much of ACTION'S
anti-poverty and community stabilizing work,
but with a portion of the funds, O'Looney is
nurturing an economic development tool that
targets low-income Athenians who lack access
to traditional credit.
"We're turning mom and pop shops into
businesses," ACTION CEO John Scoggins
says. By reaching out to entrepreneurs with
household incomes at or below 200 percent of
federal poverty guidelines—$21,660 for one
person, $44,100 of a family of four—ACTION
aims to make legitimate businesses out of
weekend, garage and kitchen table operations.
Existing businesses are fair game as well, as
long as they meet the standards, but ACTION
wants to focus on start-ups that can't go to
banks, the local government or other non
profits for help.
On top of tracking down a previously
unmapped population, ACTION has the added
task of completing its
stimulus-funded mission by 2
the end of September. But js
funds didn't arrive until
December of last year, and
at this point, the organiza
tion has only a few months
left to finish the job.
There's been some v
confusion as to just how ;
much of ACTION'S recov
ery money, a Community
Service Block Grant, is
marked for direct economic
stimulus: about a quarter
goes to micro-enterprise ,
development. Another
quarter goes to employ
ment initiatives; ACTION
has created 10 part-time
assistant positions to help
administer programs in the
region and given daycare
scholarships to job seekers
and the newly employed. A
Urge portion of the money
goes to eviction and foreclosure assistance/
which has become increasingly important as
furlough days take their toll on many ACTION
clients, O'Looney says.
CTION splits the economic develop
ment portion of the grant into four
irts: micro-enterprise training,
job creation grants, individual development
accounts and a program called Green Partners
that's planting gardens in various locations
throughout ACTION'S coverage area. Outside
of Clarke County, ACTION is the food bank for
many communities, O'Looney says. A pound of
tomatoes given to someone in Madison County
fs a pound they don't have to buy at the store:
"It translates into money," says Scoggins.
Micro-enterprise training begins with a
stack of prospective entrepreneur applications
that Angelyne Diaz, O'Looney's program assis
tant, whittles down into classes of 15. During
the initial application process, and over the
course of two five-hour training sessions, Diaz
assesses each applicant's progress and selects
up to 10 for continuation. Out of the first
class of 15, nine made it through.
Each one of the graduates "selected for
continuation" receives a 4 GB computer and
software worth $500 and another $500 for
paperwork needed to legitimize their business:
a license, articles of incorporation or insur
ance. Any money beyond that will depend on
the graduate's success as an entrepreneur—
how their business plan develops and whether
or not the business can create jobs for others
besides the owner.
"If we believe the business is moving
toward job creation, then it's legitimate in
my mind to give them money for job suste
nance," O'Looney says. So far, out of the nine
entrepreneurs selected to graduate from the
program, only two have received job creation
grants totaling $50,000. These two grants pro
duced five jobs, O'Looney says.
A:
fter her husband heard an ACTION ad
on the radio, Tonya Knox signed up for
the training to develop her fairy-tale-
themed children's party planning business.
She flew through the program, according to
Diaz, and Knox's Princess Dream Party business
has customers already. Knox says she keeps
a few employees "on-call" and is working to
Angelyne Diaz (right) presents Tonya Knox with a certificate after Knox completed the initial phase
of ACTION, Inc.’s micro-enterprise training.
become Job Creation Grant eligible. Diaz also
is helping Knox legitimize her three-year-old
summer camp for girls.
Diaz says she's working through 100
new applications for the next two classes.
Unfortunately, O'Looney hasn't had too many
takers on her favorite development tool the
individual development account (IDA). New
to the Athens area, an IDA is a basic match
ing fund program whose savings can be spent
on secondary schooling,- business building
or homeownership: anything that helps low-
income families build assets and economic
well being, according to the Corporation for
Enterprise Development
IDA holders set a savings goal for a com
puter, for example, and ACTION matches the
savings dollar for dollar. ACTION partnered
with Athens First Bank and Trust on the
project but only one person has opened an
account according to O'Looney.
"We really need to get the word out on
this," she says. ACTION planned initially to
. use a flexible, low-interest revolving loan to
help develop micro-enterprises, but they've
changed strategy for two reasons. First
Scoggins says implementing such a complex
financial tool in an eight-and-a-half-month
timeframe is next to impossible. Second,
ACTION found it difficult to find existing,
credit-worthy businesses that met the poverty
guidelines. O'Looney says the government
made it clear that they don't want the stimu
lus going to people who've been in the econ
omy and know the channels to find money;
they want it in the hands of people in need.
But O'Looney isn't worried about the change:
"I feel good about having us focur more and
more on the truly beginning small business."
W hile not a business novice, Seth
Hendershot needed ACTION'S help
when he decided to "up the ante"
on his coffee shop operation.
Hendershot owns the Tasting Room inside
the Jittery Joe's roaster on East Broad Street
but is "not in the position to get a traditional
loan from a bank" as he prepares to open a
stand-alone Tasting Room on Oglethorpe Ave.
Hendershot meets the federal requirements for
the Job Creation Grant, and he says he's hop
ing to receive $20,000 to create more than
ACTION focuses on
entrepreneurs "who seldom
see themselves as appro
priate [for real financial
assistance] but are doing
legitimate business,"
according to O'Looney.
original press release
referred to these busi
nesses as the "underground
economy"—but has ACTION
to reach their
have,"
"It's hard
"Out
of the original class of 16,
only two held previous
business licenses. Nine
brand new businesses, six
expanding businesses and
one legitimizing business
completed the training,
according to an ACTION
document. The former
mayor admits they need
better PR, so the/ve taken out ads in Zebra
magazine, checked in with faith-based organi
zations and improved contact with banks that
can refer the entrepreneurs ACTION wants to
help.
O'Looney says the program is finding its
footing and she's excited about "carving
deeper and deeper into that population that
has not been helped by programs in the past."
She thinks they're doing what needs to be
done and what hasn't been done before and
getting the money to the right people "in an
accountable and honorable way." Hopefully,
ACTION can knock it out by the Sept. 30
deadline.
"The private non-profit sector is asked to
do a job much greater than creating a new
jet or a new weapon," O'Looney says. "We're
given less money and more ropes. If (only] we
had the liberty they give a weapons builder—
a billion dollar contract for 10 years. We're
supposed to change the tide of culture and
poverty in very little time with very tittle
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