Letter from the President

Hello Team Loyalty,

I would like to first say be safe, COVID is a real thing, and it has clearly affected each and every one of us. I strongly encourage all team members to get vaccinated, but ultimately the choice is yours. There has been rumors that the Department of Labor maybe coming out with a VAX Mandate “each employer will decide exactly what they want to do, but what we're saying through the Department of Labor rule making process is a minimum of testing once a week or full vaccination," a senior administration official said.” So, vax or get tested, possibly. I am not a fan of this, but we must do what we can to stay open.

Another great loan growth month in August for Loyalty Pawn. We have three stores with over a million-dollar loan balance. That is terrific, way to go Team Loyalty!! I believe we will continue to have great loan growth months Our buys were also terrific. We purchased over the counter (not including what we have sourced from other dealers for jewelry or any other luxury goods), just over the counter numbers were almost 100% more from the first 4 months of the year (JanuaryApril) compared to the last 4 months (May-August). That is a massive increase. I believe these purchase numbers will also increase along with our loan balance. Let's keep up the great work. Also, great news, some of you have already taken advantage; Golden 1 has reopened, Yay!! Be sure to check out the upcoming events and get your ticket requests in as soon as possible. Ask your manager for the proper procedure for ticket requests and HAVE FUN. One change this year is we only have four tickets to each event. I am still negotiating on parking with Golden 1 and the Sacramento Kings.

On a positive note, on the legislative end is that AB296 which is the extension bill that does not require us to charge sales tax on defaulted items is on the Govenor's desk and is expected to be signed into law shortly. On the Federal side of things, the NPA has successfully received an injunctive order against the state of Illinois that, in short, puts a stay on the law passed, in Illinois, that caps the interest rate allowable to charge on a pawn loan to 36% annually. In short, Illinois, would be only allowed to charge 10 cents (yes $0.10) a day on a $100 pawn loan. This is good for the industry because there is a federal bill trying to move that would like to make this a nationwide bill. The injunction is very positive sign that on a federal level we would be able to do the same.

Have a Tremendous Month,

Stan Lukowicz, III