A little fortune, a lot of FAIM aids ventures

Program gives boost, teaches financial skills

By Robb Murray

MANKATO — Shari Ellingson says she’s living proof the Family Assets for Independence in Minnesota program can be life-changing.

Ellingson had been dabbling in ventriloquism for years and decided, after developing a knack for making people laugh, to try turning the hobby into a small business.

She needed a little help, though, and turned to the Minnesota Valley Action Council’s FAIM program. There she was able to learn finance and marketing skills to help make her venture a successful one. But more importantly, the program motivated her to save and, hence, earn money.

Participants make deposits into a FAIM-monitored savings account and FAIM, using state and federal funds, matches those deposits 3 to 1 — for ever $1 a participant puts into savings, FAIM deposits $3. Participants must be pursuing a home purchase, saving for college, or launching a business or looking to help expand an existing one.

Because of FAIM, Ellingson has been able to purchase a backdrop for her performances, a sound system, magic tricks and additional puppets for her act. She’s also been able to purchase marketing materials and attend an annual ventriloquists’ conference — where she learns new tricks of the trade and makes valuable contacts.

“It has been great and the people are wonderful,” Ellingson said. “I can’t say enough good about the FAIM program. I think it’s a great opportunity we in Minnesota are blessed to have.”

Ann Macgregor, FAIM program coordinator for MVAC, said that in most years the FAIM program fills up right away. But this year, for some reason, they still have 15 openings for their upcoming class. Macgregor said she’d like to get all the program’s slots filled by Dec. 15.

“Usually I have a wait list,” Macgregor said. “Not this year.”

FAIM began in 1998 and operates in nine counties in south-central Minnesota. More than 70 people have completed the program in MVAC’s area. Combined, participants have saved more than $50,000, leveraging more than $150,000 in matches.

FAIM is more than just a savings account. It also offers classes that teach participants personal finance savvy in areas such as banks, investing and credit. Participants also must attend 10 hours of classes geared toward helping them realize their goal.

Participants must save at least $960 during the two-year program. After completing the requirements, they receive a match of $2,880. Aspiring homeowners can use the funds for the down payment and closing costs on the purchase of a first home. Students can use the funds to pay for tuition, books and fees. (The money cannot be used to pay back student loans.) Those planning to start or expand a small business can use the funds for related capital purchases.

Applicants must be residents of Blue Earth, Brown, Faribault, Le Sueur, Martin, Nicollet, Sibley, Waseca or Watonwan counties and have household incomes of no more than $21,660 for an individual, and up to $74,020 for a family of eight.

The matching process works a little differently for home buyers than for the others. With home ownership, participants must save the minimum $960 before receiving the match. For people saving for school or for a small business, matching dollars can be used after being in the program for six months and after completion of the required classes.

In Ellingson’s case, before she could do anything, she had to put together a business plan.

“That is probably one of the ickiest things I had to do,” she said, “but it was also the best thing.”

Even though she said she had a good idea of where she was going with her business and what she wanted to do, Ellingson said doing that business plan clarified how she’d get there. And she could only purchase things with FAIM money if it was in her business plan.

Her case has been such a success story that MVAC has her perform for groups and tell them her story.

She talks about the good things, then tells the audience there were some bad things. For comedic effect, she whips out a scroll that unfolds to show a lengthy list and she says to the audience something like, “I hope you got a few minutes.”

But it’s all a joke, because there’s nothing she doesn’t like about the program, she said.

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