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JULY 13-19, 2016
What replaces Payday loans? CONTINUED FROM C1
narios industry experts and consumer advocates expect could happen. SAME BIRD, NEW FEATHERS: The simplest answer is the industry will survive, and keep doing what it is doing by changing the nature of the loans it provides. Nick Bourke, a researcher at Pew who has spent more than five years looking at the payday lending industry, says the industry is already making adjustments in the wake of new regulations. When Colorado effectively banned traditional payday lending, the industry moved into high cost installment loans that are paid over a few months instead of all upfront in a few weeks. “There will be fewer twoweek payday loans because of the CFPB rules, but the industry has already shifted to installment lending that is paid over several months. There will still be high interest rate payday loans on the market,” Bourke said. PAWNING: Another possible beneficiary may be pawnshops. A 2015 Cornell University study found that states that banned payday loans saw more activity at pawn shops and more checking accounts being closed involuntarily, possibility due to an increased amount of people overdrafting their accounts. But pawn shops are largely seen as a place for people to borrow who don’t have checking accounts. BANKS TAKE OVER: Consumer advocates and the CFPB have been quite public in saying the best solution would be for traditional banks, which are highly regulated, to take over payday lending. Banks have plenty of locations, easy access to funds, and can make loans at much lower interest rates and still be profitable. But banks have been cool at best to the idea. Payday loans are seen as a risky and expensive. The costs for underwriting and processing them would eat into profits from the high interest rates they carry. “Most of our members are willing to do small dollar loans, but they are not very profitable. Application fees don’t cover the cost of doing the application and the processing and the credit check. There are just fixed costs that you just cannot get around,” said Joe Gormley, assistant vice president and regulatory counsel at the Independent Community Bankers of America, a lobby group for small banks. CREDIT UNIONS: There are already some experimental alternatives going on to replace payday loans. One program run through credit unions is called the Payday Alternative Loan, where a customer can borrow between $200 to $1,000 at 28 percent interest and an application fee of $20. But interest in the program has been limited. The federal regulator for the PAL program estimates only 20 percent of credit unions provided such loans and loan originations were only $123.3 million last year, a drop in the bucket compared to the roughly $7 billion the mainstream payday lending industry did in the same year. There’s also a program being tried in Atlanta, run by the credit agency Equifax and the National Federation of Community Development Credit Unions, that will provide payday loan alternatives that would come with lower interest rates as well as financial counseling to help people avoid borrowing in an emergency again. (Ken Sweet covers banking and consumer financial issues for The Associated Press. Follow him on twitter at (at)kensweet.)
NEW PITTSBURGH COURIER
BUSINESS
Douglas makes Olympic team, debuts new Barbie
Certification Seminar
by Yesha Callahan The Root
Olympic gymnast Gabrielle Douglas shows off her Gabrielle Douglas Barbie doll. Although Gabrielle Douglas had a tough time at the recent Olympic trials, she made the team and will be joined by Simone Biles, Aly Raisman, Laurie Hernandez and Madison Kocian in Rio de Janeiro. And she now has become immortalized with her own Barbie! Douglas’ doll joins those of Misty Copeland, Trisha Yearwood and Ava DuVernay as part of Mattel’s “Shero” line. Douglas hopes her doll will teach people to go for their dreams. “I love a challenge. I love to push limits and I love that my very own Barbie celebrates me for being a
JULY 14—Chatham University’s Women’s Business Center presents its “Is my business certifiable” workshop, 9:30 to 11 a.m. at the Abator Business Office, 615 South Avenue, Pittsburgh 15221. In this interactive workshop, attendees will learn about different certification programs for Minority, Women and Disadvantaged businesses, and why choosing the right one is important. For more information, call 412-365-1448.
Training Event
role model to girls,” said Douglas. “Being honored as a Barbie Shero further motivates me to inspire girls by being the best I can be.” “Be yourself and really
embrace your inner beauty and your true talent,” she told People. “Believe in yourself. Never let anyone tell you you can’t do something when you can.”
Apple, Microsoft, HP among companies shunning GOP convention by Brandon Bailey AP Technology Writer
SAN FRANCISCO (AP)—Donald Trump has promised to liven up this year’s Republican National Convention. But some of America’s biggest corporations are bailing on the party. Apple recently became the latest company to give the GOP’s presumptive nominee the cold shoulder; it won’t contribute money or products to the Republicans’ big shindig in Cleveland this month. HP Inc. is also withholding support, while Microsoft is giving products only, not cash. Beyond the tech industry, Ford, JPMorgan Chase and United Parcel Service have opted to withhold support. Most of these companies are also taking a pass on donating to the 2016 Democratic convention. In previous election cycles, though, several of them have given Republican organizers more—sometimes far more— in cash or donated products than they have the Democrats, making their pullback from the Republican gathering this year more dramatic. WHY COMPANIES ARE UNEASY The reasons aren’t completely clear. None of these companies publicly described its decisions as a repudiation of Trump. Several declined to discuss their thinking, while others said their sponsorship plans were decided months before Trump emerged as the front-runner for the GOP nomination. In many cases, however, their decisions became known after civil rights groups launched a public effort—including billboards, letters and online messages—aimed at persuading companies to withhold support for an event celebrating a candidate who’s campaigned with incendiary proposals , racial rhetoric and harsh comments about immigrants and women. “Of course it’s because of Trump,’’ said Larry Sabato, a University of Virginia political scientist who has studied party conventions for more than 30 years. Business executives, he said, don’t want to alienate customers who may be offended by Trump’s statements. “Just as candidates don’t get votes from people they insult,’’ he said, “corporations don’t
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get business from people they insult.’’ Even so, Republican convention organizers say their fundraising is going well. More than 100 donors have contributed a total of $57.5 million, or about 90 percent of what’s needed, said Emily Lauer of the Cleveland 2016 Host Committee. She declined to provide a list of sponsors. Trump’s campaign did not respond to requests for comment. APPLE AND THE REPUBLICANS Apple made headlines after Politico reported the tech giant won’t support the GOP convention because of Trump’s divisive statements. Apple declined to comment on its plans for either convention this year, although Lauer confirmed to The Associated Press that the company isn’t a sponsor for the GOP gathering. A spokeswoman for Democratic organizers declined to comment. Apple CEO Tim Cook has publicly supported diversity and fair treatment of immigrants. Trump, meanwhile, has publicly blasted the company for manufacturing its products abroad and for resisting FBI demands to help unlock an encrypted iPhone used by an extremist killer in San Bernardino, California. As if to underscore that Apple’s dispute is with Trump, but not the GOP, Cook hosted a California fundraiser for House Speaker Paul Ryan and other congressional Republicans last week. Ryan has endorsed Trump, but opposed his call to temporarily ban foreign Muslims from entering the country and criticized a Trump remark as “the textbook definition of a racist comment.’’ Apple hasn’t been a big cash donor to past conventions, although it gave $165,000 in computers and other tech gear for the 2008 GOP gathering and $140,000 worth of products to that year’s Democratic event. It also loaned iPhones to organizers of the 2012 Republican convention. DOWN IN THE VALLEY Another well-known tech company, Hewlett-Packard, gave a total of $1 million in cash and tech gear for the two previous GOP conventions. While organizers of the 2012 Democratic convention didn’t accept corporate cash, HP gave $100,000 to the Democrats’ gathering in 2008. HP has since split into two corporations; neither is donating to either
convention this year. Meg Whitman, the chairman of HP Inc. and CEO of spinoff Hewlett Packard Enterprise, has been a prominent Republican fundraiser over the years. But she has called Trump ``a dishonest demagogue’’ and said his nomination would be disastrous for the party. Not every Silicon Valley company has followed suit. Facebook CEO Mark Zuckerberg has criticized Trump’s proposal for a wall on the Mexican border to block illegal immigration. But his company said it’s providing “financial and other support’’ to both conventions. Google said it will be the official “livestream provider’’ of online video from both events. Microsoft said in April that it’s providing tech products to both party conventions this year but will give cash—it hasn’t said how much— only to the Democratic event. Microsoft has made hefty donations to past Republican conventions. It gave $815,000 in cash and more than $700,000 in products in 2012, while providing $1.3 million in cash and products to the Republican gathering in 2008. By contrast, Microsoft has given less support to previous Democratic gatherings. It provided $71,000 in software for the 2012 Democratic convention and $640,000 worth of products in 2008. ELSEWHERE IN THE FORTUNE 100 Several other companies said they’re not supporting either party’s event this year. UPS donated more than $400,000 in cash and services to the GOP convention in 2012 and a similar amount to the Republicans in 2008, while providing $125,000 worth of donated services to the Democrats in 2012 and far less in 2008. Spokeswoman Kara Ross said her company decided last year that it wouldn’t give to either event in 2016, citing budgetary reasons unrelated to Trump’s candidacy. Similarly, Ford Motor Co. says it decided to sit out both conventions last year, well before Trump emerged as the front-runner. JPMorgan Chase says it decided near the start of 2016 to donate money instead to youth employment programs in this year’s host cities. Both companies gave cash to the Republican convention in 2012 and equal amounts to both party gatherings in 2008.
JULY 20—The Duquesne University Small Business Development Center presents Writing and Implementing a Business Plan, 8:30 to 10:30 a.m. at the Allegheny County Department of Economic Development, One Chatham Center, Suite 900, 112 Washington Place. A panel of experts will convey step-by-step instruction on how to write and implement a business plan along with the financing options available to assure the best results for achieving the established goals. The event is free, but seating is limited. Call 412-350-1067 to register.
Special Business Breakfast JULY 22—The African American Chamber of Commerce will host a Special Breakfast Meeting, starting at 8 a.m. at the Rivers Club, 301 Grant Street. The guest speaker will be Greater Pittsburgh Chamber of Commerce President Matt Smith.
Build Your Business Workshop JULY 30—The Women Business Center in partnership with Hill CDC an SCORE® Pittsburgh present a Build Your Business Workshop to women interested in starting or expanding their business, from from 9:30 a.m. to 12 p.m. at the Hill CDC offices, 2015 Centre Avenue. Business experts and seasoned entrepreneurs will discuss the following topics: business planning, marketing and sales, financing, legal issues and business lessons learned. The cost is $20. Veterans are free and there are a number of 50percent scholarships available. Register online at http://www.chatham.edu/ wbc.
Small Business Workshop August 27—The Chatham Center for Women’s Entrepreneurship presents Small Business Basics, from 9 to 11:30 a.m. in the Mellon at its Shadyside Campus. Entrepreneurs will provide lessons learned and experts in areas including sales, accounting, and financing will provide brief presentations and will be available for participant Q&A at this informal workshop. The fee is $30. (To have information on Business Calendar, send information at least two weeks in advance to: 315 E. Carson St., Pittsburgh, PA 15219; Fax: 412-481-1360 or e-mail: newsroom@newpittsburghcourier.com.)
‘I am my customer’ CONTINUED FROM C1
the mission to offer powerfully feminine designs at a superior level of service for the sophisticated curvaceous woman, Vick says she likes that Dorsey’s designs offers modern yet classic looks that are flattering for the ultra-thin woman to the curvaceous and voluptuous woman ranging in sizes up to 24. The site also includes fashion news inclusive of copies of Plus Magazine. Labeling Timeline as a new brand, Vick says she sponsors events like a photo shoot she just completed featuring new arrivals, she hosted a spring fashion show, encourages her customers to host home parties, she vends and has hopes to do a pop up shop. July 29, Timeline will be a part of the ReFined Culture Fashion Showcase with designer Lana Neau Meyer. The event is affiliated with the Phenomenal Open Mic Speaker Series I sponsored by Jade Earth Events and Neau World Charities at the Sherwood Event Center. The event will be hosted by Lady Mahogany and Ayana Sade is the featured artist. A personal styling service, Vick describes as being designed to style,
dress and educate women of all shapes and sizes with clothing that best fits their fashion desires is another service provided by Timeline. “Clients are paired with their very own personal styling expert that guides them in finding their prefect look,” she said. Currently only available in Pittsburgh and the surrounding areas, Vick says client benefits include a portfolio of looks that are designed specifically for them based on their fashion desires, three complete outfits to choose from based on their portfolio preferences A NEW WAY TO SHOP—Specializing in dresses and tops, Chanell M. Vick shows off and a follow up fitting ap- a few outfits from the Timeline collection. (Photos by Diane I. Daniels) pointment to ensure all clothing looks and feels home parties and events now not being able to find a job. “I good for the special occasion. The hosted by Timeline. felt rejected. So knowing this personal styling service, she says Always focused on a career in was something that I wanted to makes her business unique. fashion, and a person with great do, I had to create my own opIn five years, Vick says she self-confidence, Vick says other portunity. Nothing in this world hopes to work with new design- than fulfilling the needs of plus is given to you,” she pointed out. ers, to have an office space to size women, another major con- “My final take away from that conduct photo shoots, to work the tributor to her starting Time- experience and advice is that business full time and to signifi- line was coming out of school you are the painter of your cantly increase the number of wanting to become a buyer and world... Create it!”