Access to Telework Program Financing Business Equipment to Increase Employment of People with Disabilities A Report on Six Years of Program Operations FY 2004-FY 2009 Introduction The Access to Telework Financial Loan Program is a federal-state endeavor to increase employment opportunities for individuals with disabilities. The program was initiated as an important component of the New Freedom Initiative for People with Disabilities, announced in February of 2001. Twenty states received federal grants to establish Telework financial loan programs. The federal Telework grants have created state-based loan programs that aid individuals with disabilities in purchasing equipment that facilitates (1) home-based self-employment and (2) teleworking from home for an employer. By offering greater flexibility than traditional work settings, teleworking, or home-based self-employment can enable a person with disabilities to more easily participate in the work force. For example, teleworking may help people with disabilities overcome barriers to employment including transportation problems, physical fatigue, and provision of personal assistance services. The Rehabilitation Services Administration, in the U.S. Department of Education, administers the Telework Program. In fiscal year (FY) 2003, 20 states received awards from the Telework Program grant competition. One dollar for every nine dollars of federal money was contributed by states through state funding and private contributions. Combined federal and state loan funds totaled about $20 million. States receiving Telework Program grants were Arizona, Delaware, Florida, Guam, Illinois, Iowa, Kansas, Maryland, Michigan, Minnesota, Missouri, Nebraska, New Mexico, New York, Oklahoma, South Carolina, Utah, Virginia, Washington and Wisconsin. States began operating their loan programs during FY 2004. Currently, nineteen Telework programs operate around the country. New York no longer has a Telework program. (See Table 1 for the federal grant and state match amounts. See Appendix for profiles of each of the Telework Loan Programs.) Table 1. Federal and State Funding for Access to Telework Programs FY 2003 State: Arizona Federal Grant: 152,501 State Match: 17,241 Total Program 169,742 State: Delaware Federal Grant: 431,037 State Match: 47,893 Total Program: 478,930 State: Florida Federal Grant: 862,072 State Match: 95,786 Total Program: 957,858 State: Guam Federal Grant: 957,860 State Match: 0 Total Program: 957,860 State: Illinois Federal Grant: 1,724,148 State Match: 191,572 Total Program: 1,915,720 State: Iowa Federal Grant: 862,074 State Match: 95,786 Total Program 957,860 State: Kansas Federal Grant: 957,850 State Match: 106,428 Total Program: 1,064,278 State: Maryland Federal Grant: 862,074 State Match: 118,025 Total Program: 980,099 State: Michigan Federal Grant: 862,074 State Match: 95,786 Total Program: 957,860 State: Minnesota Federal Grant: 862,074 State Match: 95,786 Total Program: 957,860 State: Missouri Federal Grant: 862,074 State Match: 95,786 Total Program: 957,860 State: Nebraska Federal Grant: 431,037 State Match: 47,893 Total Program: 478,930 State: New Mexico Federal Grant: 862,074 State Match: 95,786 Total Program: 957,860 State: Oklahoma Federal Grant: 172,415 State Match: 19,157 Total Program: 191,572 State: South Carolina Federal Grant: 862,074 State Match: 95,786 Total Program: 957,860 State: Utah Federal Grant: 862,074 State Match: 95,786 Total Program: 957,860 State: Virginia Federal Grant: 2,586,222 State Match: 287,359 Total Program: 2,873,581 State: Washington Federal Grant: 1,176,731 State Match: 132,998 Total Program: 1,309,729 State: Wisconsin Federal Grant: 862,074 State Match: 95,786 Total Program: 957,860 Total: Federal Grants: 17,210,539 State Matchs: 1,830,640 Total Programs: 19,041,179 Source: Rehabilitation Services Administration * Note: Guam used the match waiver afforded through the Omnibus Territorial Act (Pub.L. No. 96-597), which waived the first $200,000 of match funds for grants to outlaying areas. Program Structure Grant funding to administer the programs was originally given to state-level lead agencies, which were then required to contract with a community-based organization to administer the loan funds. Such community organizations can take the form of independent 501(c)3 organizations or component programs of larger community nonprofits, such as Easter Seals or a Center for Independent Living. To provide support in financing operations, the community based organizations are also required to contract with a lender (or several) in their state that will allow them to provide loans to all parts of their states. Lending partners vary, including commercial banks, credit unions, state financing agencies, and other lenders. Several states have undertaken to make loans directly as well. Table 2 lists the lead agencies, the community based organizations and the lending institutions partnering to provide telework loans. Telework programs are structured to ensure that their governance lie in the hands of a group representative of the population they seek to serve. As a result, governing boards of the programs are required to be comprised of a majority of people with disabilities. Most of the Telework programs now in operation are housed within organizations that also administer Alternative Financing Programs in their states. The two have similar structures and can offer a continuum of financial products. Table 2. Access to Telework Program Partners 2009 State: Arizona State Agency: Arizona Technology Access Program, Institute for Human Development, Northern Arizona University CBO: Arizona Community Foundation Lender: Arizona MultiBank State: Delaware State Agency: Delaware Department of Labor, Division of Vocational Rehabilitation CBO: University of Delaware, Delaware Assistive Technology Initiative Lender: DEXSTA Federal Credit Union, Wilmington Saving Fund Society State: Florida State Agency: Florida Department of Education, Division of Vocational Rehabilitation CBO: Florida Alliance for Assistive Services and Technology (FAAST) Lender: SunTrust Bank State: Guam State Agency: Guam Center for Excellence in Developmental Disabilities Education Research & Service, University of Guam/CEDDERS CBO: Pacific Islands Micro Credit Institute Lender: Bank of Guam State: Illinois State Agency: Illinois Department of Human Services, Division of Rehabilitation Services CBO: Illinois Assistive Technology Program Lender: Security Bank State: Iowa State Agency: Iowa Finance Authority CBO: Iowa Able Foundation Lender: Bankers Trust State: Kansas State Agency: University of Kansas CBO: Kansas Assistive Technology Cooperative Lenders: Golden Plains Credit Union State: Maryland State Agency: Maryland Department of Disabilities, Maryland Technology Assistance Program CBO: AT Loan Program Board Lenders: State Employees Credit Union of Maryland, 1st Mariner Bank State: Michigan State Agency: Michigan Department of Labor and Economic Growth, Rehabilitation Services CBO: United Cerebral Palsy of Michigan Lender: Option 1 Credit Union State: Minnesota State Agency: Minnesota Department of Administration, STAR Program CBO: Assistive Technology of Minnesota Lender: Bremer Bank, Klien Bank, M&I Bank State: Missouri State Agency: Missouri Assistive Technology Council CBO: Loan Application Review Committee Lender: Missouri State Treasurer State: Nebraska State Agency: Nebraska Assistive Technology Partnership CBO: Easter Seals Nebraska Lender: First National Bank of Omaha State: New Mexico State Agency: New Mexico Division of Vocational Rehabilitation/Technology Assistance Program CBO: Technology Loan Council Lender: First Community Bank of New Mexico State: Oklahoma State Agency: Oklahoma ABLE Tech CBO: Oklahoma Assistive Technology Foundation Lender: BancFirst of Stillwater State: South Carolina State Agency: South Carolina Vocational Rehabilitation Department CBO: Allied Opportunities Lender: South Carolina State Credit Union State: Utah State Agency: Utah Assistive Technology Program, Utah State University, Center for Persons with Disabilities CBO: Utah Assistive Technology Foundation Lender: Zions First National Bank Utah Microenterprise Loan Fund State: Virginia State Agency: Virginia Department of Rehabilitative Services CBO: New Well Fund/Assistive Technology Loan Fund Authority Lender: SunTrust Bank State: Washington State Agency: Washington Department of Commerce CBO: Washington Access Fund Lender: Washington Access Fund State: Wisconsin State Agency: Wisconsin Department of Workforce Development CBO: IndependenceFirst Lender: Marshall and Ilsley Bank (M&I) Source: 2009 Annual Telework Data Financing Mechanisms Telework programs have structured their financing offerings in a variety of ways dependent on the needs of their local communities, and based upon the nature of their agreement with their lending partner, where one is involved in the lending process. For example, the size of loans given, the terms under which they are given (length of term, as well as interest rate) and other factors relating to financing vary from state to state. What remains a constant is the desire of the programs to see that funding is made accessible to people with disabilities, and that it is done so in an affordable manner that also respects the desire of the programs to continue to provide financing long into the future. Table 3 details the types of loans provided, interest rates, and terms of the Telework programs. Table 3. Features of Access to Telework Loan Programs 2009 State: AZ Loan Program Type: Guarantee/Interest Rate Buy Down Range of Loans: $500 - $10,000 Interest Rates/Terms: 4% - 10.25%, 1 to 4 years % Guarantee Requirements: 100% State: DE Loan Program Type: Loan Guarantee Interest Rate Buy-Down Guaranteed/Interest Rate Buy-Down Loan Range of Loans: $500 - $30,000 Interest Rates/Terms: 2.5% - 7.75%, No Min, No Max % Guarantee Requirements: 100% State: FL Loan Program Type: Guaranteed Loan, Non Guaranteed Low-Interest Loan Range of Loans: $3,000- $30,000 Interest Rates/Terms: Case by Case,2 to 6 years % Guarantee Requirements: 100% State: GU Loan Program Type: Loan Guarantee Range of Loans: $500,No maximum Interest Rates/Terms: 2.25%,up to 2 years % Guarantee Requirements: 100% State: IL Loan Program Type: Guaranteed/Interest Rate Buy-Down/Principal Buy Down Range of Loans: $500 - $40,000 Interest Rates/Terms: 5.5%,up to 15 years % Guarantee Requirements: 100% State: IA Loan Program Type: Revolving Loans/Loan Guarantee Range of Loans: $500 - $10,000, No minimum – No maximum Interest Rates/Terms: 2% and Determined by Bank/ No minimum – 5 years and No minimum – 6 years % Guarantee Requirements: Varies based on collateral State: KS Loan Program Type: Revolving Loan/Loan Guarantee Range of Loans: No minimum,No Maximum Interest Rates/Terms: 5% /No min – 10 year max % Guarantee Requirements: 100% State: MD Loan Program Type: Guaranteed, Interest Rate Buy-Down Loan,Guaranteed/Interest Rate Buy-Down Loan,Non-Guaranteed Preferred Rate Loan Range of Loans: $500 - $50,000 Interest Rates/Terms: Minimum 3%, 1 to 7 years, up to 10 yrs for home equity % Guarantee Requirements: 100% State: MI Loan Program Type: Loan Guarantee,Guaranteed/Interest Rate Buy-Down Loan Range of Loans: $0 - $20,000 Interest Rates/Terms: 4.75% - 9.75%, 1 - 5 years % Guarantee Requirements: 100% State: MN Loan Program Type: Loan Guarantee, Low Interest Non-Guaranteed Loan Range of Loans: $2,000 – $100,000 Interest Rates/Terms: 2% - 4.75%, 1 – 10 years % Guarantee Requirements: 100% State: MO Loan Program Type: Direct Loan Range of Loans: $500 - $10,000 Interest Rates/Terms: 2%-4%/ up to 5 years % Guarantee Requirements: n/a State: NE Loan Program Type: Guaranteed, Interest Rate Buy-Down Range of Loans: $1,500 - $50,000 Interest Rates/Terms: 2.75% - 6.25%, 2 - 10 years % Guarantee Requirements: 100% State: NM Loan Program Type: Guarantee, Interest Rate Buy-Down Loan Range of Loans: $1,000 - $30,000 Interest Rates/Terms: 2.25%, No max 1 – 5 years % Guarantee Requirements: 100% State: OK Loan Program Type: Interest Rate Buy Down Loan, Guaranteed/Interest Rate Buy Down Range of Loans: No minimum - No maximum Interest Rates/Terms: 5% 3-5 years % Guarantee Requirements: 100% State: SC Loan Program Type: Loan Guarantee Range of Loans: $1,000 - $30,000 Interest Rates/Terms: No fixed rate, 1 - 10 years % Guarantee Requirements: 50% - 100% State: UT Loan Program Type: Interest Rate Buy Down, Non-Guaranteed Low Interest Loan Range of Loans: $500 - $10,000 Interest Rates/Terms: 0% 1 to 3 years % Guarantee Requirements: 0% State: VA Loan Program Types: Revolving Loan, Guaranteed Loan, Interest Rate Buy-Down Loan, Guaranteed/Interest Rate Buy Down, Non Guaranteed Low Interest Loan Range of Loans: Direct up to $15,000, Guarantee $15,001 plus Interest Rates/Terms: 5% direct, Case by Case for partnership loans % Guarantee Requirements: Maximum 5 years for revolving, 7 for guarantee State: WA Loan Program Types: Direct Loan Range of Loans: No Min. - $50,000 Interest Rates/Terms: 5%, up to 5 years % Guarantee Requirements: n/a State: WI Loan Program Types: Loan Guarantee Range of Loans: $1,000 - $50,000 Interest Rates/Terms: 6.5%, 1 to 10 years % Guarantee Requirements: 20%Source: 2009 Annual Telework Data The Challenges Facing Telework Programs The market within which Telework programs operate is a very specialized niche. Potential consumers represent two groups: those interested in self-employment and those who require equipment to engage in tele-commuting employment arrangements with an employer. At any one time, the number of individuals actively pursuing self-employment is quite small. There are, however, people with disabilities who see entrepreneurship as a path to independence and economic independence. Budding entrepreneurs, however, have several barriers to overcome before they can make their aspirations reality. Telework programs are often faced with helping potential borrowers to see their way through these barriers, which included developing the business idea into a viable business plan, getting an understanding of personal finances and their role with the business, licensure and registrations related to the business, planning for the impact of entrepreneurship on benefits, and other concerns. These and other issues must often be addressed when a person with a disability approaches a Telework program with an interest in a loan. As a result, Telework programs report a significant lead time in loan generation. Programs often invest a great deal of time and energy in a potential consumer far before a loan application is even made. Telework Data from the First Six Years Number and Value of Loans Made In the first six years of their operation (FY 2004 – 2009), Telework loan programs provided 202 loans across the country, disbursing nearly $2.4 million in total financing to people with disabilities. Table 4 details the loan activity for the past six years. Data from the 2009 fiscal year indicate that the pace of lending through the Telework program is steadily increasing in terms of volume of loans made. In that year, 55 loans were made for a total value of $585,853. FY 2009 Loan Program Data Starting in FY 2009, Telework loan programs used a new OMB approved data collection instrument and collected additional data about loans and their borrowers. Borrower Demographic Information Borrower Disability Types Data were collected on the types of disabilities experienced by those taking Telework loans in FY 2009 that show that Telework program borrowers represent a broad cross-section of the greater disability population in this country. For data collection purposes, borrowers’ disabilities were classified as either: physical, sensory, communicative, cognitive, psychiatric, multiple, or other. Slightly more than half of program borrowers reported having a physical disability (31 of 59 loans). The second most commonly cited disability type was psychiatric, at approximately 17%. In descending order, the remaining categories were multiple, sensory and cognitive. No borrowers reported having either communicative disabilities or specified “other” disabilities. Figure 1 illustrates the distribution by disability type. Table 4. Telework Loans FYs 2004 through 2009 State: Arizona FY 2004: Loans 0, Value 0 FY 2005: Loans 0, Value 0 FY 2006: Loans 1, Value $2,947 FY 2007: Loans 1, Value $3,097 FY 2008: Loans 0, Value 0 FY 2009: Loans 0, Value 0 Total 6 Years: Loans 2, Value $6,044 State: Delaware FY 2004: Loans 0, Value 0 FY 2005: Loans 0, Value 0 FY 2006: Loans 0, Value 0 FY 2007: Loans 0, Value 0 FY 2008: Loans 0, Value 0 FY 2009: Loans 0, Value 0 Total 6 Years: Loans 0, Value 0 State: Florida FY 2004: Loans 0, Value 0 FY 2005: Loans 6, Value $66,810 FY 2006: Loans 2, Value $29,246 FY 2007: Loans 0, Value 0 FY 2008: Loans 1, Value $9,634 FY 2009: Loans 1, Value $5,620 Total 6 Years: Loans 10, Value $111,310 State: Guam FY 2004: Loans 0, Value 0 FY 2005: Loans 0, Value 0 FY 2006: Loans 0, Value 0 FY 2007: Loans 0, Value 0 FY 2008: Loans 2, Value $19,616 FY 2009: Loans 1, Value $25,536 Total 6 Years: Loans 3, Value $45,152 State: Illinois FY 2004: Loans 1, Value $40,107 FY 2005: Loans 6, Value $109,171 FY 2006: Loans 1, Value $34,482 FY 2007: Loans 6, Value $110,439 FY 2008: Loans 1, Value $6,923 FY 2009: Loans 3, Value $40,131 Total 6 Years: Loans 18, Value $341,253 State: Iowa FY 2004: Loans 0, Value 0 FY 2005: Loans 1, Value $4,029 FY 2006: Loans 0, Value 0 FY 2007: Loans 1, Value $1,480 FY 2008: Loans 1, Value $10,000 FY 2009: Loans 3, Value $9,900 Total 6 Years: Loans 6, Value 25,409 State: Kansas FY 2004: Loans 0, Value 0 FY 2005: Loans 1, Value $12,750 FY 2006: Loans 1, Value $936 FY 2007: Loans 0, Value 0 FY 2008: Loans 4, Value $83,264 FY 2009: Loans 2, Value $2,025 Total 6 Years: Loans 8, Value $98,975 State: Maryland FY 2004: Loans 0, Value 0 FY 2005: Loans 0, Value 0 FY 2006: Loans 0, Value 0 FY 2007: Loans 3, Value $17,762 FY 2008: Loans 1, Value $50,000 FY 2009: Loans 3, Value $5,800 Total 6 Years: Loans 7, Value $73,562 State: Michigan FY 2004: Loans 0, Value 0 FY 2005: Loans 1, Value $800 FY 2006: Loans 0, Value 0 FY 2007: Loans 2, Value $33,210 FY 2008: Loans 0, Value 0 FY 2009: Loans 4, Value $36,062 Total 6 Years: Loans 7, Value $70,072 State: Minnesota FY 2004: Loans 0, Value 0 FY 2005: Loans 0, Value 0 FY 2006: Loans 6, Value $61,283 FY 2007: Loans 8, Value $196,600 FY 2008: Loans 6, Value $179,150 FY 2009: Loans 12, Value $193,938 Total 6 Years: Loans 32, Value $630,971 State: Missouri FY 2004: Loans 1, Value $8,000 FY 2005: Loans 1, Value $2,000 FY 2006: Loans 0, Value 0 FY 2007: Loans 0, Value 0 FY 2008: Loans 1, Value $9,908 FY 2009: Loans 1, Value $6,500 Total 6 Years: Loans 4, Value $26,408 State: Nebraska FY 2004: Loans 0, Value 0 FY 2005: Loans 5, Value $29,162 FY 2006: Loans 3, Value $41,439 FY 2007: Loans 2, Value $65,365 FY 2008: Loans 2, Value $53,000 FY 2009: Loans 4, Value $58,545 Total 6 Years: Loans 16, Value $247,511 State: New Mexico FY 2004: Loans 0, Value 0 FY 2005: Loans 0, Value 0 FY 2006: Loans 1, Value $2,700 FY 2007: Loans 1, Value $28,100 FY 2008: Loans 6, Value $39,860 FY 2009: Loans 6, Value $38,644 Total 6 Years: Loans 14, Value $109,304 State: Oklahoma FY 2004: Loans 3, Value $10,087 FY 2005: Loans 0, Value 0 FY 2006: Loans 0, Value 0 FY 2007: Loans 0, Value 0 FY 2008: Loans 3, Value $39,695 FY 2009: Loans 4, Value $94,543 Total 6 Years: Loans 10, Value $144,325 State: South Carolina FY 2004: Loans 0, Value 0 FY 2005: Loans 0, Value 0 FY 2006: Loans 0, Value 0 FY 2007: Loans 0, Value 0 FY 2008: Loans 1, Value $6,353 FY 2009: Loans 1, Value $2,490 Total 6 Years: Loans 2, Value $8,843 State: Utah FY 2004: Loans 0, Value 0 FY 2005: Loans 0, Value 0 FY 2006: Loans 0, Value 0 FY 2007: Loans 0, Value 0 FY 2008: Loans 0, Value 0 FY 2009: Loans 0, Value 0 Total 6 Years: Loans 0, Value 0 State: Virginia FY 2004: Loans 1, Value $23,595 FY 2005: Loans 4, Value $36,204 FY 2006: Loans 2, Value $6,500 FY 2007: Loans 0, Value 0 FY 2008: Loans 1, Value $13,429 FY 2009: Loans 0, Value 0 Total 6 Years: Loans 8, Value $79,728 State: Washington FY 2004: Loans 0, Value 0 FY 2005: Loans 2, Value $4,274 FY 2006: Loans 4, Value $29,013 FY 2007: Loans 3, Value $15,983 FY 2008: Loans 5, Value $37,439 FY 2009: Loans 10, Value $15,124 Total 6 Years: Loans 24, Value $101,833 State: Wisconsin FY 2004: Loans 0, Value 0 FY 2005: Loans 0, Value 0 FY 2006: Loans 6, Value $54,881 FY 2007: Loans 11, Value $114,581 FY 2008: Loans 9, Value $55,001 FY 2009: Loans 4, Value $50,995 Total 6 Years: Loans 30, Value $275,458 Totals FY 2004: Loans 6, Value $81,789 FY 2005: Loans 28, Value $265,200 FY 2006: Loans 27, Value $263,427 FY 2007: Loans 38, Value $586,617 FY 2008: Loans 44, Value $613,272 FY 2009: Loans 59, Value $585,853 Total 6 Years Loans 202, Value $2,396,158 Sources: FYs 2004, 2005, 2006, 2007, 2008, and 2009 Annual Telework Data Figure 1. Telework Borrowers by Disability Type FY 2009 Physical 52% Psychological 17% Multiple 14% Sensory 10% Cognitive 7% Communication 0% Other 0% Source FY 2009 Annual Telework Data Employment Status at Time of Loan Closing Given the program’s goal of helping to create employment opportunities for people with disabilities, it is important to note that data from FY 2009 indicate that loans are going to the population intended. Of the 59 loans made only 10 (17%) were made to borrowers already employed. The greatest number of loans (24, or 40%) were made to people who were unemployed at the time they took out a Telework loan. The second largest group of borrowers (21 loans, or 36%) were self-employed at the time. Figure 2 illustrates the employment status at the time of application for the loan. Figure 2. Borrowers’ Employment Status at Time of Application FY 2009 Unemployoed 40% Self-Employed 36% Employed 17% Employed & Self-Employed 7% Source FY 2009 Annual Telework Data Types of Equipment Financed Telework loans are able to finance the purchase of equipment necessary for a person with a disability to engage in either home-based self-employment, or Telework for an employer. For purposes of data collection, the types of equipment financed are grouped in the categories of computer equipment and related software, communications equipment, home/office modifications, office furniture/equipment, tools of the trade, and vehicles. Data from the 2009 fiscal year show that most of the equipment purchased with Telework funds are classified as "tools of the trade," representing 35 of the 71 total pieces of equipment financed in the year. This category includes “specialized equipment needed to conduct business.” This category is used if the equipment is unique to the business, such as cameras and photographic equipment for a photography business or a loom for a weaving business. It also includes adaptive equipment that is unique to the business. The second most frequently financed type of equipment in FY 2009 was vehicles, accounting for 17 of the 71 total pieces of equipment. In descending order the remaining categories were computers and related equipment, office furniture and equipment, and lastly, communication equipment, and home or office modifications (with two pieces of equipment financed in each category). The number of pieces of equipment financed is greater than the number of Telework loans given in 2009. This is because it is possible to purchase more than one category of equipment with each Telework loan. Figure 3. Categories of Equipment Financed FY 2009 Computer Equipment & Related - 11 Communication Eqiupment - 2 Home/Office Modification - 2 Office Furniture/Equipment - 4 Tools of the Trade - 35 Vehicles - 17 Source: FY 2009 Annual Telework Data Telework Loans Details Types of Loans Telework programs have the freedom to structure their financing mechanisms in a way that best serves the needs of their program and the community. The majority of programs operate loan funds in cooperation with a lender. In many cases, Telework loan funds are not actually lent out to consumers. Rather, the partner financial institution lends its own capital, with the Telework funds serving to guarantee the loan. In this way, the financial institution carries most of the burden of servicing the loan, while the program assumes the risk of default. In other cases, and possibly in combination with a loan guarantee, the Telework funds may be used to reduce the interest rate charged to a consumer. This is accomplished by “buying down” the interest rate at the loan’s origination, generally with a one-time payment to the lender. Several Telework programs operate as direct lenders, providing revolving loans. In these situations, the program’s funds are used as loan capital, and the program itself decides the terms of the loan. Several Telework programs utilize more than one of the funding options available. Table 5 shows the number of loans made using various financing mechanisms. Table 5. Types of Financing Mechanisms FY 2009 Type of Loan: Revolving Loans Number of Loans: 16 % of Total Loans (N=59): 27% Type of Loan: Partnership Loans/Guarantee only Loan Number of Loans: 29 % of Total Loans (N=59): 49% Type of Loan: Partnership Loans/Guarantee and buy-down Loan Number of Loans: 14 % of Total Loans (N=59): 24% Type of Loan: Partnership Loans/Buy down only Loan Number of Loans: 0 % of Total Loans (N=59): 0% Total Number of Loans: 59 Total % of Total Loans (N=59): 100% Sizes of Telework Loans Telework loans are most often very modest in size. Fiscal year 2009 data indicated that forty percent of loans made were for between one and five thousand dollars. This figure is in line with what might be expected when considering the financing needs of a micro-business of the kind often pursued by Telework borrowers. It also indicates that the Telework funds should, when fully deployed, be able to serve a large number of individuals to achieve their goals. Table 6 provides the breakdown of the dollar amounts of the loans. Table 6. Range of Dollar Amounts of Loans Provided FY 2009 Range of Loan Amounts: $1,000 or less Number of Loans: 8 % of Total Loans (N=59): 14% Range of Loan Amounts: $1,0001 to $5,000 Number of Loans: 24 % of Total Loans (N=59): 40% Range of Loan Amounts: $5,001 to $10,000 Number of Loans: 7 % of Total Loans (N=59): 12% Range of Loan Amounts: $10,0001 to $15,000 Number of Loans: 6 % of Total Loans (N=59): 10% Range of Loan Amounts: $15,0001 to $20,000 Number of Loans: 3 % of Total Loans (N=59): 5% Range of Loan Amounts: $20,0001 to $25,000 Number of Loans: 7 % of Total Loans (N=59): 12% Range of Loan Amounts: $25,001 to $50,000 Number of Loans: 3 % of Total Loans (N=59): 5% Range of Loan Amounts: $50,0001 or more Number of Loans: 1 % of Total Loans (N=59): 2% Total Number of Loans: 59 % of Total Loans (N=59): 100% Source: FY 2009 Annual Telework Data Additional Funding Sources Used with Telework Loan Leveraging of Additional Funds Telework loans are often structured to maximize the leveraging of additional funding sources to ensure that borrowers receive the needed equipment under the best circumstances, and that the funding streams that have been made available are utilized to the greatest extent possible. In this way, Telework programs contribute to an increased return on investment, making the most of federal, state and other dollars contributed through programs including Vocational Rehabilitation, Medicaid waivers, Plans to Achieve Self Support (PASS), and other mechanisms. In fiscal 2009, data were collected for the first time on the usage of additional funding sources together with Telework funds (see Table 7). These show that, nationally, 18 loans (30%) combined funding from Vocational Rehabilitation. Also for 18 loans (30%), borrowers provided their own financial contribution. PASS plans were used in some seven loans (12%). Table 7. Additional Funding Sources Used in Telework Loans FY 2009 Funding Source: Vocational Rehabilitation Number of Loans: 18 % of Total Loans (N=59): 30% Funding Source: Borrower Contribution Number of Loans: 18 % of Total Loans (N=59): 30% Funding Source: PASS Number of Loans: 7 % of Total Loans (N=59): 12% Funding Source: Medicaid Waivers Number of Loans: 3 % of Total Loans (N=59): 5% Funding Source: Other Loans Number of Loans: 2 % of Total Loans (N=59): 3% Funding Source: IDAs Number of Loans: 1 % of Total Loans (N=59): 2% Funding Source: Other Nonprofit sources Number of Loans: 1 % of Total Loans (N=59): 2% Funding Source: Other Number of Loans: 7 % of Total Loans (N=59): 12% Funding Source: None Number of Loans: 15 % of Total Loans (N=59): 25% Source: FY 2009 Annual Telework Data *Note: Borrowers could receive funding from more than one source, thus the number of loans is greater than the total loans of 59 Outcomes of Telework Loans – One Year Follow-up Data further show that the program is making an impact and helping Telework borrowers to achieve their goals related to employment. As part of the RSA-mandated data collection mechanism, borrowers are polled one year after the closing of their loan, by means of a follow-up survey. Borrowers provided information on their employment status and whether they achieved their employment goals. They were also asked about changes in salary and employment status. Employment Goals Achievement of Employment-related Goal Respondents are asked whether they have achieved the goal they held at the time of taking out their Telework loan. Such goals can include becoming newly employed in Telework, becoming newly self-employed, changing to a Telework job, changing to self-employment from working for another or to expand an existing business. Respondents were also given the option to list an “other” employment goal. There were 62 active telework loan holders in FY 2009, of these 55 responded to the follow-up survey. The data indicate a very high success rate of Telework borrowers. Some 91% reported achieving their employment goal at the time of the follow-up survey. The majority of respondents (40%) indicated that their goal was to expand an existing business. The second most often cited goal achieved was to become newly self-employed, a result indicated by 24% of the borrowers. Table 8 details their goals and achievements. Table 8. Employment Goals Achieved - One Year Follow-up FY 2009 Employment Goal Achieved: Number of Respondents (N=55): 48 % of Respondents (N=55): 87% Expand an existing business: Number of Respondents (N=-55): 22 % of Respondents (N=55): 40% Become newly self-employed: Number of Respondents (N=55): 13 % of Respondents (N=55): 24% Become newly employed in Telework: Number of Respondents (N=55): 5 % of Respondents (N=55): 9% Achieve another goal: Number of Respondents (N=55): 4 % of Respondents (N=55): 7% Change to a telework job: Number of Respondents (N=55): 3 % of Respondents (N=55): 5% Change to self-employment: Number of Respondents (N=55): 1 % of Respondents (N=55): 2% Changed Employment Goal and Achieved it: Number of Respondents (N=55): 2 % of Respondents (N=55): 4% Total who Achieved Goal (Original or Changed): Number of Respondents (N=55): 50 % of Respondents (N=55): 91% Did Not Achieve Employment Goal: Number of Respondents (N=55): 5 % of Respondents (N=55): 9% Total Respondents: Number of Respondents (N=55): 55 % of Respondents (N=55): 100% Source: FY 2009 Annual Telework Data Maintaining Employment and Increasing Wages Nationally, 55 of the 62 borrowers who have held their loans for more than a year responded to the survey, for a response rate of 89%. Of those who responded to the survey, 91% (50 respondents) report that they have achieved their employment goal. Of the number of respondents who achieved their employment goals, two thirds (33) also saw their wages or salary increase. Additionally, more than three quarters of respondents (38 of 50) reported that they were able to maintain their employment over the year period. Table 9 summarizes the outcomes. Table 9. Employment and Salary Status of those who Achieved Goals- One Year Follow-up FY 2009 Status: Incresed Wages/Salary Number of New Status: 33 Number who Achieved Goal (N=55): 66% Status: Maintained Employment Number of New Status: 38 Number who Achieved Goal (N=55): 76% Source: FY 2009 Annual Telework Data Examples of Success Guam Entrepreneur - Translation Services The Get Guam Teleworking Loan Program recently provided a loan for $2,000 to a man with paraplegia, to upgrade his office equipment to allow for ease and increased efficiency and productivity. With the new equipment, this gentleman has increased his salary as a translator. The man obtained a laptop computer several years ago through Guam's alternative financing program called the Guam Options for Alternative Loans-Assistive Technology (GOAL-AT). With this computer, he started a business. He obtained a business license and began marketing his translation services from English into Chuukese.  The man is a native of Chuuk, an island in Micronesia.  He speaks the language fluently and reads and writes Chuukese as well.  Many Chuukese have migrated to Guam in search of better opportunities.  The Guam community, its public schools, and its special education programs are densely populated with Chuukese immigrants who speak little to no English.  It wasn't long before, the Guam Department of Education contracted this Guam entrepreneur to translate documents, like its Parent's Rights brochure, into Chuukese.  His computer was old, slow, and only housed with Word Pad.  He had no printer and was very limited without proper software.  Through the Get Guam Telworking Loan Program, the translator was able to get a brand new laptop equipped with Microsoft Office, an all-in-one wireless fax/copier/printer, and a wireless router.  The man can work from bed or his wheelchair with ease.  With the increased efficiency and productivity of his new office equipment, he has expanded his translation services.  He can take on multiple contracts and now offers translation into Pohnpeian, another Micronesian language in which the translator is fluent. Maryland Student - Nurse Graduate A hearing impaired nursing student living on SSDI approached the Maryland WorkABILITY Loan Program to purchase an amplified stethoscope in order to complete her clinical nursing rounds in school. She was able to receive a low-interest loan guarantee and fund the cost to the stethoscope. This enabled her to complete her clinical instruction and secure her degree. She went on to find a job with increased earning potential. Michigan Machinist - Commercial Success A gentleman with degenerative disc disease ran a successful hone-based business. He refurbished commercial drill bits. His disability, however, was making it increasing difficult to fulfill customer orders and he was in danger of losing some of his customers. The man worked with the Michigan Rehabilitation Services and developed a business plan. He needed to purchase a new drill bit sharpener in order to continue his work without pain. He was given funds from Michigan Rehabilitation Services and took out a loan in the amount of $20,000 from the Michigan Telework Loan Program. By blending these two funding sources, he was able to purchase the new drill bit and continue his business. The man is now able to fulfill his orders on time and without pain and has increased his income. Missouri Hobbyist - Budding Business A Missouri man and his wife had been living on social security income for a few years since he had a work related injury. He was unable to work a traditional full time job due to his disability. The man picked up a hobby of visiting local lumber yards and collecting scrap lumber for a low fee. The couple would make wood hope chests and benches. They also collected rejected steel pieces from the local steel manufacturer and turned them into fences and corrals. The local community took to their products and the couple soon found a potential clientele. To consider turning their hobby into a source of income, they needed equipment that would withstand the volume of work. They came to the Missouri Telework Loan Program to borrow funds to purchase "tools-of-the-trade" equipment, such as welding equipment, pipe benders, etc. Now the couple have purchased their equipment and are beginning their efforts to turn their hobby into a way to generate an income. Appendix - Access To Telework Program Profiles ACCESS TO TELEWORK PROGRAM PROFILE: ARIZONA Lead Agency: Arizona Technology Access Program Community Based Organization: Arizona Community Foundation Lender: Arizona MultiBank Program Title: S.E.E.D. -- Self-Employment for Entrepreneurs Overview S.E.E.D. -- Self-Employment for Entrepreneurs is a financial loan program designed to assist individuals with disabilities to borrow money at affordable rates for the purchase of business equipment. This program is administered by a consortium. Arizona MultiBank Community Development Corporation services the loans. S.E.E.D., through its Donor Advised Funds at the Arizona Community Foundation, provides the loan guarantee to MultiBank in case of borrower default. Products S.E.E.D. provides low interest, guaranteed loans for small business needs for people with disabilities in amounts ranging from $500 to $10,000. Terms are generally from one to four years. The program offers flexible repayment terms, below market interest rates, and no pre-payment penalties. Services S.E.E.D. offers several services to applicants. There is assistance with completion of loan application package and identification of other potential funding source. Guidance is given to assist in identifying self employment resources and with identifying resources for the development of business plans. ACCESS TO TELEWORK PROGRAM PROFILE: DELAWARE Lead Agency: Delaware Department of Labor, Division of Vocational Rehabilitation Community Based Organization: University of Delaware Lender: DEXSTA Federal Credit Union, WSFS Bank Program Title: Delaware Telework Equipment Loan Program Overview The Delaware Telework Equipment Loan Program (DTELP) was created to assist Delawareans with disabilities in acquiring the equipment they need to help them work from home or other remote locations for an employer. Products The DTELP offers guaranteed and interest rate buy down loans to purchase office equipment—computers, fax machines, office furniture—as well as home/office modifications and/or to purchase any type of equipment that an entrepreneur or an employee with a disability needs to engage in their chosen occupation. Loans are at competitive interest rates and with reasonable repayment schedules. The loans range from $500 to $30,000. Applicants must show that they can repay the loans. Services The DTELP provides information and referral to other funding sources to assist with other business expenses. It refers applicants to the SBDC at the University of Delaware, SCORE, SBA, the Delaware Economic Development Office, and other agencies to assist with business development needs. ACCESS TO TELEWORK PROGRAM PROFILE: FLORIDA Lead Agency: Florida Department of Education, Division of Vocational Rehabilitation Community Based Organization: Florida Alliance for Assistive Services and Technology, Inc. (FAAST) Lender: SunTrust Bank Program Title: New Horizon Fund Small Business Loan Overview The New Horizon Fund Small Business Loan Program is the Access to Telework Loan Program of the Florida Alliance for Assistive Services and Technology (FAAST). This service is funded through the Rehabilitation Services Administration and the Florida Department of Education, Division of Vocational Rehabilitation. The program's mission is to reduce barriers to employment by providing affordable financial loans for business equipment so that individuals with disabilities can work at home, either for an employee or be self-employed. Products The New Horizon Fund Small Business Loan Program offers loans ranging from $3,000 to $20,000 with competitive rates and flexible terms. The New Horizon Fund Small Business Loan Program serves consumers of all ages, however, the borrower must be at least 18 years of age. The loan fund offers low interest loans and loan guarantees through its lending partner, SunTrust Bank. Items that could be purchased include office equipment, home office modifications, computer hardware and software, tools of the trade, and other work-related equipment. Services The New Horizon Fund Small Business Loan offers applicants assistance with completing an application. It refers applicants to partners that will assist in the development of business plans and finding other funding resources. ACCESS TO TELEWORK PROGRAM PROFILE: GUAM Lead Agency: Guam Center for Excellence in Developmental Disabilities Education, Research, and Service Community Based Organization: Pacific Islands Microcredit Institute Lender: Bank of Guam Program Title: Get Guam Teleworking Loan Program Overview The Get Guam Teleworking Loan Program offers financial loans at a low interest rate to purchase equipment in order to Telework. Loans are available to Guam residents who are 18 years of age or older, who confirm Telework intent - employment with an existing business or self employment. Products The GGT Program offers guaranteed loans that range from $500 to $5,000. Terms are flexible with loans ranging from one to five years or the estimated life of the devices or equipment purchased, whichever is less. The Loan Review Committee, on a case-by-case basis, will approve loan amounts above $5,000 and beyond five years. The current interest rate agreed by the lending institution and the PIMI Board is 2% over the TDOA rate at the time of closing. The current interest rate is 2.125%. Information about the loan program is available on the program's website www.gsatcedders.org. A loan application form is on the website. Services The GGT Program assists applicants in filling out the application forms as needed and obtaining quotes for equipment. The program also makes available accessible formats of the application and any requested program information. The loan program makes referrals to the Pacific Islands Microcredit Institute and the University of Guam’s Small Business Development Center for financial education, credit counseling, and assistance with writing business plans. The loan program also makes referrals to the state AT Program to assist with device selection. ACCESS TO TELEWORK PROGRAM PROFILE: ILLINOIS Lead Agency: Illinois Department of Human Services, Division of Rehabilitation Services Community Based Organization: Illinois Assistive Technology Program Lender: Direct Lender Program Title: ILoan Program Overview Illinois Assistive Technology Program (IATP), a statewide nonprofit organization, offers an Access to Telework Program (ATP) to Illinoisans with disabilities under its ILoan Program. The ATP under ILoan Program assists individuals with disabilities in borrowing money to obtain business equipment, assistive technology and limited home/office modifications that are needed for self-employment or telework. Products The ILoan Program is a direct lender and is licensed in the state of Illinois under the Illinois Consumer Installment Loan Act. For the purchase of business equipment and assistive technology, the allowable maximum loan amount is $35,000.00 and minimum loan amount $500.00. For home/office modifications, the maximum is $5,000.00. All loans have a fixed interest rate between 5.5% and 7.5% based on borrower’s credit score and term of the loan. Allowable loan terms range from one year to 10 years depending upon the type and useful life of the items purchased. The ATP loans allow interest only payments for the first 3 months of the loan and balloon payments. Self-employment applicants are asked to provide a completed business plan and, if already in business, historical information about the business’ performance. Applicants who intend to engage in contractual or telework employment must provide written documentation from the employer establishing the essential terms and conditions of the employment. Services The ILoan Program assists applicants with loan applications when needed and assists in locating reliable no-cost credit education whenever possible. It refers applicants to small business development centers to assist with the development of business plans. Also, it refers applicants to a nonprofit group called Self-Employment Resource Network that offers business mentoring for those to learn from other entrepreneurs with disabilities who are experienced business owners. ACCESS TO TELEWORK PROGRAM PROFILE: IOWA Lead Agency: Iowa Finance Authority Community Based Organization: Iowa Able Foundation Lender: Iowa Able Foundation/Bankers Trust Program Title: Iowa Able Foundation Overview The Iowa Able Foundation provides microloans directly to individuals with disabilities and caretakers of individuals with disabilities who are residents of Iowa and in need of access to credit for business start up or business stabilization or to work from home. Iowa Able microloans are available for any business deemed legal by the Iowa Attorney General and for businesses that are a minimum of 51% owned, operated, and managed by an Iowan with a disability. Products Iowa Able capitalizes the micro business start up or micro business stabilization needs of Iowans with disabilities by making loans directly to the business owner. Loan proceeds may be used for the purchase of assistive technology which includes, but is not limited to, home modifications and any product, equipment, or service needed to ensure an individual's independence in business. Other acceptable uses of Iowa Able microloan capital include business start up expenses such as inventory, specified working capital, and business equipment. Microloans are also available for Iowans with disabilities choosing to work from home and in need of credit to obtain assistive technology. Loan guarantees to Iowa banks are available for qualified individuals who lack the collateral necessary to obtain credit needed for the purchase of assistive technology related to business start up, stabilization or to work from home. Services Iowa Able provides financial literacy training and one-on-one technical assistance focused on assisting individuals with disabilities in understanding credit, their personal finances, and additional resources for funding. Borrower prequalification services are available to applicants to determine their capacity for loan repayment. Individual Development Account (matched savings) services for business start up are available through Iowa Able's partner organization, the Iowa Credit Union Foundation. ACCESS TO TELEWORK PROGRAM PROFILE: KANSAS Lead Agency: University of Kansas Community Based Organization: Kansas Assistive Technology Cooperative (KATCO) Lender: Golden Plains Credit Union Program Title: Financial Loans for Employment Technologies Overview KATCO provides competitive-interest, flexible financing to Kansans with disabilities interested in obtaining technology, adaptive or non adaptive to help them become, maintain or expand their work life. Individual borrowers can be self-employed or work for an employer. Products KATCO provides loans to purchase business equipment. Competitive interest loans are available from $250 to $75,000 with terms up to 10 years and are typically guaranteed by KATCO with community banks or a credit union. KATCO does provide direct lending as well as bridge loans for certain technologies. Services Every application received is reviewed to determine if the applicant is interested in technologies for employment purposes. When such an application is identified the loan program works with the applicant to determine if s/he is employed by another person or self-employed. If self-employed, regardless of the maturity of the business, staff works to help position the potential borrower by providing business plan reviews, information and referrals to external funding sources and other supports as are identified through the review process. ACCESS TO TELEWORK PROGRAM PROFILE: MARYLAND Lead Agency: Department of Disabilities Community Based Organization: Assistive Technology Loan Program Board of Directors Lender: State Employees Credit Union, 1st Mariner Bank Program Title: WorkABILITY Loan Program Overview The WorkABILITY Loan Program assists Maryland residents with disabilities qualify for low-interest loans to buy equipment to support home-based work or small businesses. The program looks at an applicant's income and debt, stability in a residence and job, credit history, and the likelihood of the applicant repaying the loan. The program's criteria are much less stringent that those of a bank and will enable many people who would be turned down for bank loans to receive funding. Products The WorkABILITY Loan Program offers guaranteed loans and interest rate buy down loans. All loans have below-market interest rates, most have rates below prime. Applicants can borrow from $500 up to $50,000 for secured loans, and up to $7,500 for unsecured loans. Services The WorkABILITY Loan Program works closely with potential loan applicants to develop business plans and connect with other funding resources. It offers financial literacy training and one-on-one assistance to help applicants better understand their personal finances. ACCESS TO TELEWORK PROGRAM PROFILE: MICHIGAN Lead Agency: Michigan Department of Energy, Labor & Economic Growth/Michigan Rehabilitation Services Community Based Organization: United Cerebral Palsy of Michigan Lender: Option 1 Credit Union Program Title: Michigan Employment Loan Fund Overview The mission of the Michigan Employment Loan Fund is to reduce or eliminate barriers to employment through low-interest loans. Financial loans can be used to buy equipment for self-employment or to work for an employer from home or a telework center. Eligibility: * Michigan residents with all disabilities, including seniors with age-related functional limitations, are eligible. The applicant must be at least 18 and his/her own guardian. * Loans must be used to buy business equipment, and related education/training to use the equipment, needed for home-based employment as an employee or business owner on a full or part-time basis. * The applicant must show that the equipment relates to employment. Products The Michigan Employment Loan Fund offers guarantees for loans up to $20,000. Interest rates are low. Repayment terms are based on the expected useful life of the equipment and on the borrower's ability to make the monthly loan payments. Repayment terms are as long as possible, up to a maximum of five years in order to give the applicant the lowest monthly payment possible. Services The loan program provides extensive financial education. It also offers training for potential borrowers to explore if self-employment is right for them. The loan program refers applicants to partners who provide assistance developing business plans. In addition, the loan program works with the applicants to secure other funding sources. ACCESS TO TELEWORK PROGRAM PROFILE: MINNESOTA Lead Agency: Minnesota STAR Program Community Based Organization: Assistive Technology of Minnesota (DBA EquipALife) Lender: Bremer Bank, NA, Klein Bank, NA and M & I (Marshall & Ilsley) Bank, NA Program Title: Access to Telework - MN / Telework - MN Overview Telework–MN offers Minnesotans with disabilities and related conditions the opportunity to make their professional and career dreams become a reality. Telework – MN applicants choose this program because of the financial support available for qualified applicants. At the center of Telework is a low interest preferred rate loan program available to help the applicant reduce financial barriers associated with self-employment, owning a business, to purchase their own equipment or address issues of accommodation / access. Telework–MN is operated by EquipALife a statewide nonprofit organization dedicated exclusively to promoting independence and self-sufficiency. EquipALife works with a variety of other resources such as the Minnesota Vocational Rehabilitation Services Agency, other nonprofits and lenders to assist the individuals, who apply for a loan to create, expand, learn a new skill and become independent. Over 30 businesses have received support through Telework-MN achieving sustainable employment goals, hiring others as they expand and increasing the economic vitality of rural, urban and suburban areas within Minnesota. Products Telework-MN offers preferred interest (lower rates), flexible terms and loan guarantees. Loan amounts range from $2,000 up to $100,000. Each loan applicant is reviewed on their own merit. The terms such as payment cycle, length of the loan, options such as a balloon cycle or incremental funding are fully considered based on the individual. Services Support services include business planning, locating resources in specific areas such as accounting, technology / networking professionals, help in locating alternative funds beyond the loan to maximize the investment of the individual, training in a wide range of areas, mentorship opportunities and creative approaches as an alternative to the current employment environment. ACCESS TO TELEWORK PROGRAM PROFILE: MISSOURI Lead Agency: Missouri Assistive Technology Council Community Based Organization: Loan Application Review Committee Lender: Missouri State Treasurer Program Title: Show Me Loans for Telework Overview The purpose of Show-Me-Loans for Telework is to provide alternative financing options for Missourians with disabilities seeking to "telework," which is work from home or remote sites away from an office, such as a telework center. Very low-interest loans are available for the purchase of any type of equipment needed to telework. Individuals may apply who are currently unemployed, underemployed, self-employed or seeking to maintain their current employment or a full-time or part-time basis. Products Show-Me-Loans for Telework provides very low-interest loans (from 2% to 4%) up to $10,000 with payment terms up to five years. There are no application or processing fees charged to applicants or borrowers. Examples of equipment that can be purchased through a telework loan include: computers and other IT equipment, software, office furniture, equipment used on a farm or ranch tools, office machines, and many other types of work-related equipment and devices. Services Show-Me-Loans for Telework can provide assistance in completing an application if needed. An on-line fillable application is available on the website and is accessible to screen-reading software. Missouri applicants may receive help developing a business plan, finding other possible funding resources, or other assistance through referral to one or more organizations providing various employment-related services. ACCESS TO TELEWORK PROGRAM PROFILE: NEBRASKA Lead Agency: Assistive Technology Partnership Community Based Organization: Easter Seals Nebraska Lender: First National Bank of Omaha Program Title: Nebraska Telework Loan Program Overview The Nebraska Telework Loan Program provides low or reduced interest loans to qualified Nebraskans with disabilities for the purchase of business equipment necessary for securing telework opportunities from home or other remote sites. Products The loan program has a loan guarantee and an interest rate buy-down loan. Loan amounts are from $1,500 to $50,000. Terms are flexible, from two years up to 10 years. Services Funding coordination is provided to each applicant for the purpose of identifying other potential financial assistance. Plan to Achieve Self Support (PASS) eligibility is assessed for applicants who are Social Security Disability Insurance (SSDI) beneficiaries or Supplemental Security Income (SSI) recipients. Funding coordination is offered to improve the applicant's ability to make a fully informed decision regarding Nebraska Telework Loan application. ACCESS TO TELEWORK PROGRAM PROFILE: NEW MEXICO Lead Agency: New Mexico Division of Vocational Rehabilitation Community Based Organization: Technology Loan Council Lender: First Community Bank Program Title: New Mexico Seed Loan Program Overview The Seed Loan Program is a financial loan program for New Mexicans with disabilities who want to work from home for an employer or become self-employed through home based work. The loans are available to purchase equipment for the business, such as computers and software, office equipment, home/office modifications, and tools of the trade. Products New Mexico Seed Loan Program offers commercial lending rates with interest buy downs through a guaranteed loan program for small business owners and employees with disabilities. Interest rates are low, currently at 2.25%. Loans can range from $1,000 to $30,000 with flexible terms from one to five years. Services The Seed Loan Program facilitates referrals to the New Mexico Small Business Development Centers to help applicants develop business plans, start businesses, access capital, set up book keeping and financial reporting, develop human resources, manage taxes and understand government contracting, The Seed Loan Program offers free advertising for successful individuals and businesses taking out loans. It also works closely with New Mexico Abilities which provides a preference for small businesses operated by qualified individuals with disabilities. ACCESS TO TELEWORK PROGRAM PROFILE: OKLAHOMA Lead Agency: Oklahoma ABLE Tech Community Based Organization: Oklahoma Assistive Technology Foundation Lender: BancFirst of Stillwater Program Title: Oklahoma Access to Telework Fund (ATF) Overview The purpose of the Access to Telework Fund (ATF) program is to increase access to and funding of computers and other equipment, including adaptive equipment so that Oklahomans with disabilities can telework. Telework outcomes can encompass work that can be performed effectively from home and/or remote sites away from the office, such as work on the road or at a telework center. Telework would apply to individuals with disabilities who are currently unemployed, underemployed, self-employed or needing to maintain employment on a full time or part time basis. Products All ATF loans have a fixed interest rate of 5% for three years or up to five years for collateralized loans. There are no minimum or maximum loan amounts. There are no applications fees but there are documentation fees for all closed loans. Services ATF applicants that are denied the low interest BancFirst of Stillwater loan can seek a guaranty of the loan through the Oklahoma Assistive Technology Foundation (OkAT). Under established policies and procedures, OkAT a non-profit organization, can guaranty the loan of qualified applicants. OkAT determines a qualified applicant must have the financial means to make the monthly payment of the loan by producing evidence of a 50% debt service to income ratio (including the monthly payment of the ATF loan) and the person is working toward correcting any adverse credit. In addition, some applicants will need to develop a business plan that will provide business objectives, marketing analysis, financial management plan that projects expenses and income. ACCESS TO TELEWORK PROGRAM PROFILE: SOUTH CAROLINA Lead Agency: South Carolina Vocational Rehabilitation Department Community Based Organization: Allied Opportunities, Inc. Lender: South Carolina State Credit Union Program Title: South Carolina Telework Loan Program Overview The Telework Loan Program offers loan guarantees to qualifying South Carolinians with disabilities, their families and authorized representatives to purchase equipment that would enable them to Telework or work from home. The mission of the loan program is to reduce or eliminate barriers to employment. Telework is paid employment that is regularly performed at a location other than the employers customary office or place of business, including home employment or a telework center. The significant portion of the paid self-employment is done from the applicant's home. Products The loan program offers guarantees for loans through the South Carolina State Credit Union to purchase business equipment. Allowable equipment may include computers and software, office equipment and furniture, vehicles, office modifications, and tools of the trade. The costs of extended warranties and maintenance plans may be included in the loan. Loans can range from $500 to $30,000. Terms are flexible, up to five years. Services The loan program works one-on-one with applicants to complete the loan applications. It provides information on other business funding sources. Referrals are made to business plan development specialists. The loan program works closely with the state's Department of Vocational Rehabilitation. ACCESS TO TELEWORK PROGRAM PROFILE: UTAH Lead Agency: Utah State University, Center for Persons with Disabilities, Utah Assistive Technology Program Community Based Organization: Utah Assistive Technology Foundation Lender: Zions Bank and Utah Microenterprise Loan Fund Program Title: Utah Telework Business Equipment Loan Program Overview The mission of the nonprofit Utah Assistive Technology Foundation (UATF), established in 1991, is to ensure that assistive technology is affordable and obtainable for Utahns with disabilities. The telework program was established in 2003 with a mission to help individuals with disabilities acquire the technology and equipment they need to telework from home and other remote sites, or to start or expand a small business. The short and long term goals of the Telework Business Equipment Loan Program are to: (a) increase access to technology for individuals with disabilities through the provision of low interest loans to purchase computers and other equipment, including adaptive equipment, (b) make it possible for individuals with disabilities to telework from home and other remote sites, or to start or expand a small business; and (c) increase employment opportunities and competitive employment outcomes for individuals with disabilities. Products The UATF offers low interest loans with no application fees. Loans range from $500 to $25,000, depending on the equipment, business and borrower qualifications. The UATF currently is partnering with Zions Bank and with the Utah Microenterprise Loan Fund. The UATF facilitates favorable credit financing of telework loans through a participating financial institution for qualified individuals with disabilities. This program provides interest rate "buy downs" in partnership with the participating bank to provide affordable monthly payments. The application fees and origination fees are also waived. The Program offers guaranteed loans through its partnership with the participating bank. Information and referral is offered to all parties who inquire about loans. The UATF offers a limited amount of technical assistance to applicants. Services The loan program offers assistance completing the application form. It refers potential borrowers to business -related services, such as those assisting developing business plans. It also provides information and referral to external funding sources. ACCESS TO TELEWORK PROGRAM PROFILE: VIRGINIA Lead Agency: Virginia Department of Rehabilitative Services Community Based Organization: NewWell Fund/Assistive Technology Loan Fund Authority Lender: SunTrust Bank Program Title: Virginia NewWell Fund Overview The NewWell Fund administers the Access to Telework Loan Fund in Virginia. It was created with public funds to help Virginians with disabilities obtain telework business equipment through low interest loans. Products The NewWell Fund offers a variety of loan financing options that include direct loans, guaranteed loans, and non-guaranteed loans at low interest rates for a broad range of telework related business needs which can include equipment, supplies, or inventory. Through the banking partnership, the NewWell Fund is able to offer loans to qualified borrowers up to $30,000 and beyond with exceptions at below market interest rates and extended terms. There is no minimum loan amount. Services The NewWell Fund provides consumer counseling for those needing assistance in completing an application as well as support for assistive technology evaluations. The program guides Virginians with disabilities to local microenterprise organizations. Their expertise leads to the development of a business plan for submission with the loan application. ACCESS TO TELEWORK PROGRAM PROFILE: WASHINGTON Lead Agency: Department of Commerce Community Based Organization: Washington Access Fund Lender: Washington Access Fund Program Title: Business Equipment Loan Fund (Telework) Overview The Access Fund is a statewide nonprofit Community Development Financial Institution. The fund's mission is to promote access to technology and economic opportunity for Washington residents with disabilities. Products The Access Fund provides low interest (5%) loans for business equipment (and assistive technology) needed for self-employment and/or home based employment to people with disabilities throughout Washington state. Loans of up to $25,000 are available for startups. Established businesses may apply for loans of up to $50,000. The loan program also has a small matched savings program through which individuals with disabilities may save up to $4000 for purchases of assistive technologies needed for work related activities (including training and education intended to lead to work) and receive an equal amount in match. Work related activities includes self employment. Services The loan program offers an eight week small business planning webinar, one-on-one business development coaching and monthly networking meetings for entrepreneurs (and potential entrepreneurs) with disabilities living in Washington state. ACCESS TO TELEWORK PROGRAM PROFILE: WISCONSIN Lead Agency: Department of Vocational Rehabilitation Community Based Organization: IndependenceFirst Lender: M&I Bank Program Title: WITelework Overview The Wisconsin Telework Loan Program is a statewide, alternative loan program that allows Wisconsin residents with disabilities to purchase computers and other equipment needed to work from home or from other remote sites away from the office, such as work on the road or at a telework center. The program is open to Wisconsin residents of all ages who have a disability. There are no income requirements, and individuals are not required to exhaust personal or public funding. Under the program, a committee reviews all applications. The banking partner services the loans, it does not determine who receives the loans. Products The WiTelework program offers guaranteed loans for business equipment. The loans help people buy equipment such as office machines, furniture, computers, vehicles and tools of the trade. Loans range from $1,000 to $50,000. Terms range from 1 to 10 years depending on the equipment being purchased. Direct loans are also available for loans under $1,000. Services Independent Living Centers throughout the state provide technical assistance and assist potential borrowers to complete loan applications. List of State Telework Loan Programs Arizona SEED Loans Northern Arizona University Institute for Human Development 2400 North Central Avenue, Suite 300 Phoenix, AZ 85004 Director: Randy Collins Phone: 602/728-9532 Phone: 800/477-9921 TTY: 602/728-9536 Fax: 602/728-9535 E-mail: randy.collins@nau.edu Web: http://www.azlat.org Delaware Telework Equipment Loan Program Delaware Assistive Technology Initiative University of Delaware 1600 Rockland Road P.O. Box 269 Wilmington, DE 19899-0269 Information Coordinator: Eileen Mapes Phone: 302/651-6790 TTY: 302/651-6794 Fax: 302/651-6793 E-mail: emapes@udel.edu Florida New Horizon Loan Fund 325 John Knox Road, Bldg 400, Suite 402 Tallahassee, FL 32303 Loan Program Manager: Tina Torrance Phone: 850/487-3278 Fax: 850/487-2805 E-mail: faast@faast.org Get Guam Teleworking Loan Program University of Guam CEDDERS UOG Station 303 University Drive, House #19 Dean Circle Mangilao, Guam 96923 Program Coordinator: Carla Torres Phone: 671/735-2490 TTY: 671/735-2491 Fax: 671/734-8378 E-mail: carla.torres@guamcedders.org Illinois ILoan Program Illinois Assistive Technology Project 1 West Old State Capitol Plaza, Suite 100 Springfield, IL 62701-1200 Telework Coordinator: Eric Guidish Phone: 217/522-7985 Email: eguidish@iltech.org Iowa Able Foundation Abilities Fund 410 North 18th Street Centerville, IA 52544 Director: Patti Lind Phone: 888/222-8943 Phone: 641/856-2173 Fax: 641/856-3101 E-mail: prlind@abilitiesfund.org Web: http://www.abilitiesfund.org Kansas Financial Loans for Employment Technologies Kansas Assistive Technology Cooperative 625 Merchant, Suite 205 Emporia, KS 66801 Executive Director: Basil Kessler E-mail: Basil@katco.net Phone/TTY: 866/465-2826 Phone/TTY: 620/341-9002 Fax: 620/342-6400 Maryland WorkABILITY Loan Program Maryland Technology Assistance Program 2301 Argonne Drive, Room T-17 Baltimore, MD 21218 Loan Program Director: Tony Rice Phone/TTY: 800/832-4827 Fax: 410/554-9237 E-mail: loans@mdtap.org Web: http://www.mdtap.org Michigan Employment Loan Fund United Cerebral Palsy of Michigan 3401 E. Saginaw, Suite 216 Lansing, MI 48912 Program Manager: Carolyn Brown Phone: 517/203-1200 ext. 19 Fax: 517/203-1203 E-mail: cbrown@ucpmichigan.org Web: http://www.mi-atlf.org Telework- MN Assistive Technology of Minnesota 1800 Pioneer Creek Center, Box 310 Maple Plain, MN 55359-0310 Project Director: Carol Fury Phone: 763/479-8239 TTY: 800/627-3529 Fax: 763/479-8243 E-mail: info@atmn.org Web: http://www.atmn.org $how Me Loans Missouri Assistive Technology Council 1501 NW Jefferson Blue Springs, MO 64015 Loan Program Coordinator: Eileen Belton Phone: 816/655-6700 TTY: 816/655-6711 E-mail: eileen.belton@att.net Nebraska Telework Loan Program Easter Seals Nebraska 638 North 109th Plaza Omaha, NE 68154 AFP Director: Mike Tufte Phone: 402/345-2200 X1112 E-mail: mtufte@ne.easterseals.com New Mexico SEEDLoans Program New Mexico Technology Assistance Program 435 St. Michael’s Drive, Bldg D Santa Fe, NM 87505 Program Director: Andy Winnegar Phone: 800/866-2253 Fax: 505/954-8608 Email: Awinnegar@state.nm.us Oklahoma Access to Telework Fund Oklahoma ABLE Tech 1514 West Hall of Fame Stillwater, OK 74078-2026 Loan Program Coordinator: Lindsey Davis Phone: 405/744-9864 TTY: 800/257-1705 Fax: 405/744-2487 E-mail: lindsey.a.davis@okstate.edu South Carolina Telework Loan Program Vocational Rehabilitation Department 1410 Boston Avenue P.O. Box 280243 West Columbia, SC 29171 Project Coordinator: Leslie Shipp Phone: 803/896-4553 Fax: 803/896-6937 E-mail: lshipp@scvrd.state.sc.us Utah Telework Business Equipment Loan Program Utah Assistive Technology Foundation (UATF) Center for Persons with Disabilities 6835 Old Main Hill Logan, UT 84322 Executive Director: Marilyn Hammond Phone: 800/524-5152 (National) Phone: 435/797-2025 TTY: 435/797-7089 Fax: 435/797-2355 E-mail: uatf@cpd2.usu.edu Web: http://www.uatf.org Virginia NewWell Fund Assistive Technology Loan Fund Authority (ATLFA) 1602 Rolling Hills Drive, Suite 107 Richmond, VA 23229 Director: Joey Wallace Phone: 866/835-5976 (Toll Free) Phone: 804/662-9000 Fax: 804/662-9533 E-mail: joey.wallace@atlfa.org Web: http://www.atlfa.org Washington Access Fund Washington Assistive Technology Foundation 100 South King, Suite 280 Seattle, WA 98104 Program Director: Kathy Gilman Phone: 206/328-5116 TTY: 800/214-8731 Fax: 206/328-5126 E-mail: kathy@watf.org WITelework Independence First 540 South First St. Milwaukee, WI 53204-1605 WITelework Coordinator: Patti Kraemer Phone: 414/226-8306 Phone: 877/463-3778 Email: pkraemer@ independencefirst.org August 2010 Produced by the National Assistive Technology Technical Assistance Partnership under a grant funded by the Rehabilitation Services Administration (RSA), U.S. Department of Education, through the Assistive Technology Act of 1998, as amended. The information contained herein does not necessarily reflect the position or policy of RSA/ED or RESNA and no official endorsement of the materials should be inferred. National Assistive Technology Technical Assistance Partnership, RESNA, 1700 North Moore St, Suite 1540 Arlington, VA 22209 Phone: 703.524-6686 TTY: 703.524.6639 Fax: 703.524.6630 Email: nattap@resna.org Web: www.resnaprojects.org/AFTAP/