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| Developing Entrepreneurs ... Growing Sustainable Businesses |
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The PLAN Fund provides training and loans to low- moderate income individuals who typically have little access to traditional financial institutions.
Although Dallas is a prosperous city, it is estimated in 2003 that more than 376,000 Dallas County’s residents, who are16.4% of a population of nearly 2.3 million, live below the poverty line (defined by US Census Bureau as $19,307 for a family of four). Unfortunately, Dallas’ poverty rate in 2003 registered a 1.2% increase from 2002.
- Child poverty statistics are even worse. Nearly a third (30.3%) of children in Dallas, according to the US Census Bureau, live in poverty.
- Hispanic and African-Americans are disproportionately affected, with roughly 25% of each group living in poverty.
- More than 95% of PLAN Fund borrowers are African- American or Hispanic.
Many of the working poor labor long hours without escaping poverty. Small business ownership is an excellent means for escaping poverty, but unfortunately, low-income individuals who want to start or already have their own small business are almost always excluded from formal credit markets. This group typically has less training in understanding financial institutions, acquiring loans and managing money and credit. The success of pawnshops, loan sharks and (high interest) for-profit loan companies has shown that there is a market for sound fiscal services for the low-income sector.
With no access to capital and with incomes in many cases barely meeting a family's most basic needs, low income individuals have no capacity to save and to invest in their own self-sufficiency. In many cases, low income families have one or more members that have income producing skills, but lack start- up financing, education, experience and the contacts to help them to turn those skills into a path to self sufficiency for their family.
During the past four years, the PLAN Fund has proven that an initial micro-loan of $500-$1,500, combined with peer support and a holistic (personal and business) training program can enable people to take the first step towards breaking the cycle of poverty.
In addition to the economic benefits of leaving poverty behind, the PLAN Fund provides clients with unique leadership development and networking opportunities integral to the success of their micro-businesses. Often, this is the first opportunity these individuals have had to develop their leadership and networking skills. Motivated clients have many opportunities to develop their leadership skills by guiding their Group through training as a Group President.
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The PLAN Fund
2801 Swiss Ave. Dallas, TX 75204
Phone: (214) 942-6698, Fax: (214) 828-4248, Email: info@planfund.org |
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