Overview of Telework

1

• Overview of Telework
• Loan Program

2
New Freedom Initiative

• Established Telework Loan Program
• Grants FY 2003 20 states received grants
  providing almost 22 million in loan capital
• Purpose to provide loans to purchase Business
  Equipment

3
Structure of Telework Loan Programs

• State Agency oversight of program
• Community Based Organization administration of
  program, day to day operations, people with
  disabilities making decisions
• Lender

4
Changes to Program since 2003

• Initially only for equipment for teleworking
  working from home for an employee, limited
  self-employment
• RSA 2007 Technical Assistance Circular
  broadened scope to specifically include loans for
  Self-Employment

5
Current Loan Programs in 19 States

• Arizona, Delaware, Florida, Guam,
• Illinois, Iowa, Kansas, Maryland,
• Michigan, Minnesota, Missouri, Nebraska,
• New Mexico, Oklahoma, South Carolina,
• Utah, Virginia, Washington,
• and Wisconsin

6
Telework Loans Each State is Different

• Types of Loans revolving, guaranteed, interest
  rate buy down
• Range of Loans - 500 - 50,000
• Interest Rates 5 - 8
• Terms 1 5 years and longer

7
Types of Business Equipment Purchased

• Communication Equipment
• Computer Equipment and Related Software
• Home/Office Modifications
• Office Furniture and Equipment
• Tools of the Trade
• Vehicles

8
Programs also Provide Loans for Assistive
Technology

• AFP Grants FY 2000 FY 2006 33 states
• Similar structure as Telework Loans Programs
• Consumer Loans for Assistive Technology
• FY 2007 Over 1,300 loans - over 17.3 million
• In 7 years Over 6,300 loans - almost 71
  million

9
Oklahomas ATF

• 5 Fixed interest rate a buy down from 2 over
  prime
• Maximum term for non guarantee loans is 36 months
  
• Maximum term for guarantee loans is 60 months
• 25.00 documentation fee at the time of closing
  which can be part of the loan

10
How to Apply

• Contact ABLE Tech
• Complete ATF application 1 page
• Provide proof of disability
• Complete BancFirst Credit Application
• Sign Release of Information

11
If Bank Denies Loan

• OkAT can approve if the applicant can make the
  monthly payment
• OkAT will approve a loan if the monthly payment
  is part of an approved Plan for Achieving Self
  Support (PASS)
• If the individual needs potential earned income
  to make the monthly payment they will need to
  complete a business plan

12
Oklahoma ATF

• Received Federal Funds 172,415 with match of
  19,157
• Had 3 loans in 2004 computer equipment
• All 3 loans defaulted in 2006 or 2007 net loss of
  5,337
• FY 08 closed 2 ATF loans for a total of 37,900

13
Current Need for Telework Loan Programs

• Increase number of applications number of loans
• 99 loans over 4 years -- 1,167,64

14
Actions to Increase Loans

• Revise Policies and Procedures
• Increase Awareness, Expand Marketing, Explore
  Branding
• Develop Strategic Partners

15
2008 Telework Forum

• Concentration on PartnersLook at
• Existing Partnerships
• New Partnerships

16
Structure of Forum - Wednesday

• Panels Partners and Loan Programs
• Brainstorm Explore Ideas

17
Structure of Forum Thursday

• Begin to Plan
• Develop Action Plan
• Future Direction