Amber Frehner ETHS 2430 Research Project Poverty within the Hispanic Community As many of us already know, poverty is a very big yet common issue in today s world. But when you think of the word poverty, what comes to mind? Many might only think of countries other than the United states-- third world countries that are always portrayed through media as having high poverty rates and starving children. When you turn on the television you can almost guarantee that you will view a commercial that is asking for donations for a child in need. Here is where I start thinking.if we can help these children who are starving and in need of shelter in other countries, why can t we help the ones that are in the same situation in our own country? I don t want to throw out all my great thoughts in my introduction so I will share more about my idea later on in my paper. First I want to give you some information about poverty in our own country and who it is affecting greatly. THE FACTS Poverty is a state of privation or lack of the usual or socially acceptable amount of money or material possessions. According to the U.S. Census Bureau data released Tuesday September 13, 2011, the nation's poverty rate rose to 15.1% (46.2 million) in 2010, up from 14.3% (approximately 43.6 million) in 2009 and to its highest level since 1993. However, Hispanics now make up the largest group of children living in poverty, the first time in U.S. history that poor white kids have been outnumbered by poor children of another race or ethnicity, according to a new study. In a report done by the Pew Hispanic Center, they stated that 6.1 million Hispanic children are poor, compared with 5 million non-hispanic white children and 4.4 million
black children. Pew said Hispanic poverty numbers have soared because of the impact of the recession on the growing number of Latinos. (Morello & Mellnik, 2011) Poverty is most prevalent in families headed by a single mother, or parents who are unemployed or have less than a high school education. But where parents were born also plays a role. The poverty rate among Hispanic children with immigrant parents was 40 percent, compared with 28 percent for children whose parents were born in the United States. This means that one in every four U.S. Hispanics lives in poverty, a total of 12.4 million people, according to Census data. The figure for the number of Hispanics living below the poverty line - less than $22,000 a year for a family of four - makes up part of a broad report entitled "Income, Poverty and Health Insurance Coverage in the United States" based on information from the "2010 Current Population Survey Annual Social and Economic Supplement." (Aspira, 2010) The rise in childhood poverty causes a great deal of distress for the nation s 50.5 million Hispanics, who have been hit harder by the tough economy than any other group. They have one of the highest unemployment rates and saw their household wealth decline more steeply than either blacks or whites, largely because so many lost their houses due to foreclosure. Although the recession is the largest single factor explaining this rise, the number of Hispanics in the country and their high birth rates suggest that childhood poverty for Hispanics is not just a temporary bump in the road. The nation s under-18 population would have declined over the past decade if it weren t for Hispanics, and most places that grew in population had Hispanics. (Morello & Mellnik, 2011) According to recently released data from the U.S. Census Bureau, the number of Americans living in poverty has only slightly decreased since 2010. Since the beginning of the recession in 2008, food insecurity has remained virtually unchanged, largely due to federal safety
net programs that keep more people from going hungry. Ironically, Congress is considering massive funding cuts to these programs at a time when they are needed most. People of color are disproportionately impacted by hunger and poverty in the United States. The Latino community is the largest ethnic minority group in the country, and the food insecurity and poverty figures for Latinos are astonishingly high. However, the figures could be far worse if it were not for programs such as the Supplemental Nutrition Assistance Program (SNAP, formerly food stamps) and the Earned Income Tax Credit (EITC), which keep more Americans from falling into hunger and poverty each year. (Hunger & Poverty in the Hispanic Community, 2012) More than one in four Latino families experience food insecurity the highest rate among any demographic in the country. Latino families with children struggle even more to put food on the table nearly one in three. Food Insecurity, 2011 Data General Population Latinos Households 14.9% 26.2% Individuals 16.4% 28.3% Children under 18 22.4% 34.5% Source: USDA Economic Research Service (Hunger & Poverty in the Hispanic Community, 2012) Within the Latino community, people living in poverty reached record numbers in 2011: more than 13 million individuals. Poverty, 2011 Data General Population Latinos Individuals 15.0% 25.3% Children under 18 21.9% 34.1% Children under 5 25.1% 36.0%
Source: U.S. Census Bureau (Hunger & Poverty in the Hispanic Community, 2012) While poverty and unemployment remained stagnant in 2011, food insecurity did not increase, mainly due to the effectiveness of our federal government nutrition programs. Thirtyfive percent of Latinos earned less than $29,654, the federal income limit for household participation in SNAP in 2011. Still, only 21.4 percent of Latinos received SNAP benefits. Poverty and Food Stamp Participation, 2011 Data Below 130% of the Received SNAP Poverty Line General Population 20.8% 13.0% Latinos 34.9% 21.4% Source: U.S. Census Bureau (Hunger & Poverty in the Hispanic Community, 2012) The U.S. Census Bureau just released new data showing that nearly 300,000 Hispanics mostly childless adults left the ranks of the poor in 2011. The proportion of all Latinos living in poverty decreased from 26.5 percent in 2010 to 25.3 percent in 2011; this is due to more Hispanics finding employment. Latinos were the only racial or ethnic group to experience a decline in poverty in 2011. NCLR (National Council of La Raza) is encouraged to see an improvement in the economic situation for so many hardworking Latinos, and urges lawmakers to preserve critical policies that will help keep Latinos from falling back into poverty. We re very pleased to see a positive shift in these numbers; however, the data shows that there were still 13 million Latinos living in poverty in 2011, six million of whom were children who did not experience a significant reduction in poverty, said Leticia Miranda, Senior Policy Advisor at NCLR. We have more work to do to reduce poverty in the Latino community, especially among children and families. One reason for the improved economic situation among Hispanics is the declining Latino unemployment rate, which fell from 13.1 percent in 2010 to 11.5 percent in 2011, and has continued to drop to 10.2 percent in 2012. Still, the majority of
jobs created since the recession is low-wage, and many Latinos lack the skills and training to find higher-paying employment. Support for adult education and retraining programs remains paramount to Latino workers ability to find better-paying jobs and pull their families out of poverty. (Teixeira, 2012) Anti-poverty programs that reach children such as Head Start, the Supplemental Nutrition Assistance Program, and the Earned Income and Child Tax Credits are also crucial for Latinos. With over one-third of Hispanic children living in poverty, support for these programs is essential to prevent many of these children from undergoing the damaging effects of growing up poor. Need For Change We all know that the MAIN change that needs to happen in order to decrease poverty even more is to create more jobs. Because Hispanics have the highest rate in poverty, these jobs have to be created for them within their own communities. Personally, I think the best way to do this is for financial institutions to lend out more small business loans. Here comes the fun part.i have found an organization call Create Jobs for USA that helps small business owners (or future owners) get loans from financial institutions to start their businesses, which in turn creates more jobs. Let me tell you more about this organization; What is it? Starbucks has teamed up with Opportunity Finance Network (OFN) to help create and sustain jobs. The Create Jobs for USA program provides capital grants to select Community Development Financial Institutions (CDFIs). The CDFIs will provide loans to underserved community businesses, which include small businesses, microenterprises, nonprofit organizations, commercial real estate, and affordable housing. The goal of Create Jobs for USA is to bring people and communities together to create and sustain jobs throughout America
What is OFN? And why did Starbucks choose to team up with OFN? Opportunity Finance Network is a national network of community lending institutions that invest in opportunities to benefit low-income, low-wealth and other disadvantaged communities in the U.S. OFN s network of more than 180 Community Development Financial Institutions (CDFIs) finances community businesses that often find it challenging to secure financing from conventional financing institutions. Combining innovation and determination, these handselected CDFIs are performance-oriented, responsible, and affordable lenders that spark job growth in the areas where it is needed most. Here are just two of many success stories due to this organization: City Heights, San Diego has a high concentration of lower-income businesses and households, and is home to an ethnically-diverse population. Thanks to a loan from the California Fresh Works Fund (CFWF), managed by NCB Capital Impact, the 119,000 residents of City Heights now have better access to fresh and healthy foods near their homes. NCB Capital Impact disbursed $8.5 million for the development of a new 42,625 square foot, full-service Northgate Gonzalez Market. (Create Jobs for USA, 2012) Northgate Gonzalez Market is a family-owned chain of supermarkets that was started by the Gonzalez family in 1980. The family currently operates 33 stores located in the southern California counties of Los Angeles, Orange, and San Diego. Northgate s markets are full service supermarkets, focused on serving predominately Latino communities. This loan and supermarket opening created 118 full-time jobs, four part-time jobs, and 40 construction jobs, with approximately 25% of all jobs held by local residents. (Create Jobs for USA, 2012) The second story: The Reinvestment Fund (TRF) provided a $4,975,000 loan to West Philadelphia Real Estate a small, for-profit, low-income housing developer for construction
of 60 units of LEED-certified rental housing for low- and very low-income families in West Philadelphia. This housing is in a much-needed area, as West Philadelphia remains poorer than the city overall, with nearly 29% of households having incomes under $15,000 as of the last census. What differentiates this low-income housing project from others is that tenants will receive free social services, such as child care or addiction management programs. These services are provided by Public Health Management a nonprofit institute for public health with which the developer has a contract and it will provide a social worker to meet with each tenant family to determine its needs, and provide services to help improve their lives. This rental housing project will also include 6 handicapped accessible units and 17 units will be designed so that people with disabilities can live in and/or visit the homes. This project created 174 jobs. (Create Jobs for USA, 2012) The cost /supporters Starbucks and the Opportunity Finance Network (OFN) teamed up to launch the Create Jobs for USA Fund on Nov. 1, 2011. The Starbucks Foundation seeded the Fund with a $5 million donation and now nearly 7,000 U.S. company-operated Starbucks stores accept donations and distribute red, white, and blue Indivisible wristbands to donors who contribute $5 or more. Google Offers has teamed up with Starbucks to help create and sustain jobs in America.
Banana Republic is one of the first partners to join OFN and Starbucks to support the Create Jobs for USA Fund. $1M will be raised and donated from special shopping events throughout the year. NASDAQ has contributed $25,000 to be directed toward providing grants to select Community Development Financial Institutions (CDFIs). Citi Community Development and the Citi Foundation are reinforcing our support for community businesses by making a $1 million contribution to Create Jobs for USA, and by empowering Citi ThankYou Members to redeem their rewards points to make a donation to the program. MasterCard is always looking for ways to make an even greater impact in their communities. That s why they joined the Create Jobs for USA program with a $500,000 donation to help create and sustain jobs in communities across America I highly recommend going to the website and view more about this organization, www.createjobsforusa.org. It has a lot more information that is very interesting. It also has more success stories you can view as well. Areas of Resistance Some areas of resistance for this organization would mostly be how humans are and how they react. The people that would be against this funding program would be the ones that are
discriminatory against this race and any other race, people that are close minded about our world and helping others. I would also say people who are very wealthy and have lost touch with reality. They may think that helping others with money is not worth it, many might say, If I can make it anyone can make it. But that is not reality, MANY people in our world are very unfortunate and do not have the means to get by, this is where people should step in and help. Interview For this interview, I chose to interview someone who works at US Bank. I chose this because I want to know more about getting small business loans here in Utah. I also wanted to hear any stories they have with customers who have had great success with their small business. --------------------------------------------------------------------------------------------------------------------- Question #1: I know this might be a privacy question, but how many customers bank with you, that you would consider to be living in poverty, here in Utah? Answer: At my branch here in West Jordan, at least 33% Question #2: Working at a national financial institution, what can you tell me about small business loans? Answer: We offer SBA Express loans (up to 350k) and SBA 7 Loans (up to $5 million) as well as regular small business loans and lines of credit. We also offer all levels of large corporate loans and lines of credit. We offer lending for every business! U.S Bank is a leader in offering loans to small business owners as well as start-up companies. We partner with SBA to help all levels of lending needs. Question #3: How many Hispanic customers would you say apply for a small business loan? Answer: One in every 3 applicants Question #4: Do you think US Bank would ever consider becoming an OFN?
Answer: I am sure our corporate banking officers are already looking into that. We currently offer a McDonald s Franchise Financing program, which offers financing for acquisitions, rebuilds or relocation as well as new builds. That program offers the possibility for new business s to open that offers more jobs for their employees. We are the fifth largest bank in the nation, and we are a leader in the financial market whom is doing our part to help the economy grow in all areas. Question #5: Do you have any personal experiences or stories customers have shared with you about their success with their small business? Answer: Yes. There was a Hispanic gentleman that came in a few weeks ago, and was asking about getting a business loan. He mentioned that he has three other companies that he owns and employ s several other Hispanic people. He said that himself and several of his friends have come to this country because he can make so much more money here. He said that his Hispanic friends are willing to work hard and do the jobs that several other people aren t willing to do. He mentioned that he personally has made so much more money than he dreamed possible and is able to employ several other Hispanic people by just doing jobs that no one else is willing or wants to do. This gentleman wanted a loan for operating expenses for his Tortilla business. He also owns a landscaping business, and a handy man service. He was a very dedicated business owner and loyal to his employees as well as their families. We are in the process of helping him with his lending needs. (Frisby, 2012) Reflection
While doing this project I fulfilled the SLCC Learning outcome #3. I was able to represent data and information in a graph form and also statistical form. While doing my research I was able to find a good amount of statistics in regards to poverty and the Hispanic community. I was also able to fulfill the SLCC Learning outcome #4. While doing this project I was able to learn about this problem and who it is affecting. I did some critical thinking and research and found a really great and effective way that this problem of poverty could be solved. It really opened up my eyes to the situation and made me more aware of what is around me on an everyday basis. Another SLCC Learning Outcome I experienced while doing this project was learning outcome #5. This is more in regards of the entire class experience, but after this class and project, I have learned to be more civically engaged with this culture. I know how to interact with them without offending them in anyway. I have also learned to embrace this culture and be open to all differences that are involved. Because I want to be an educator, this has been a great experience for me to be more culturally competent. It has made me more aware of cultural differences that I will have in my classroom and has prepared me for interactions with Hispanic families that I will have in my classroom as well.
Bibliography Create Jobs for USA. (2012). Retrieved from Create Jobs for USA: http://www.createjobsforusa.org/on/demandware.store/sites-createjobsusa- Site/default/SuccessStories-Show Hunger & Poverty in the Hispanic Community. (2012, September). Retrieved from Bread for the World: http://www.bread.org/ol/2012/domestic-nutrition/pdf/fact-sheet-latino-hunger-andpoverty.pdf Aspira. (2010). 1-in4 US Latinos Live in Poverty, According to Census. Retrieved from Aspira: http://www.aspira.org/en/1-in4-us-latinos-live-poverty-according-census Frisby, K. (2012, November 14). Small Business Loans. (A. Frehner, Interviewer) Morello, C., & Mellnik, T. (2011, September 28). Hispanic kids the largest group of children living in poverty. Retrieved from The Washington Post: http://www.washingtonpost.com/local/hispanickids-the-largest-group-of-children-living-in-poverty/2011/09/28/giqarfc54k_story.html Teixeira, J. (2012, September 14). Data Shows Fewer Latinos Living in Poverty. Retrieved from National Council of La Raza: http://www.nclr.org/index.php/about_us/news/news_releases/data_shows_fewer_latinos_livin g_in_poverty/