The Sentinel: Banking

Hands Off! mass moblizations this Saturday in Central Illinois

CHAMPAIGN – Hands Off! is organizing a national day of action on April 5 across the country. Local rallies will occur in Charleston, Bloomington, Springfield, and Peoria, in addition to the main protest in Washington, D.C.

Champaign-Urbana's protest will be at West Side Park on Saturday from noon until 2 p.m. Last week, despite persistent rain, more than 300 demonstrators gathered at the Champaign County Courthouse to protest the policies and actions of President Donald Trump's second administration.

Partnering with the AFL-CIO, the ACLU, Patriotic Millionaires, the National Education Association, and more than two dozen organizations, the objective is for people across the country to take action. They hope thousands of people will march, rally, disrupt, and demand an end to this billionaire power grab.

"We’ll show up at state capitals, federal buildings, congressional offices, and city centers—anywhere we can make sure they hear us," it says on the organization's website.

They believe America is undergoing a hostile takeover by billionaires with policies affecting voting rights, the Social Security system, and the gutting of laws protecting against predatory financial practices in consumer banking.

"We are facing a national crisis. Our democracy, our livelihoods, and our rights are all on the line as Trump and Musk execute their illegal takeover."

Interesting articles:

Unlocking homeownership with down payment assistance and savings plan

Photo: Jill Wellington/Pixabay

StatePoint Media - If you dream of owning a home but aren’t sure whether you have enough money for a down payment, take another look. You might already have enough or be closer than you think.

Down payment and closing cost assistance

Depending on your situation, you may qualify for a grant to help with your housing purchase. Grants can offer down payment and closing cost assistance. Some financing programs also allow qualified homebuyers to put down as little as 3%.

“Aspiring homeowners may want to talk with a mortgage professional to explore their options. They can help aspiring homeowners understand how much they need for a down payment and other upfront costs as well as for ongoing expenses such as insurance, homeowners’ association fees, and unexpected repairs,” says Ewunike N. Brady, head of African American Segment, Wells Fargo Home Lending.

If saving up to buy a home is your goal, how can you put more money away each month to get there sooner? Here are some savings tips to consider:

1. Pay down credit card and loan debt to save money on interest. This may also lower your debt-to-income ratio and increase your credit score, which helps when applying for a mortgage. Start with accounts with the highest interest rates, pay more than the minimum, make payments every two weeks instead of monthly, and consider setting up automatic payments.

2. Track your spending habits and evaluate what you can cut. Many helpful budgeting apps are available. Small changes can add up to big savings. For example, make your own coffee, pack a lunch, carpool, get your hair cut less frequently, or cook and watch movies at home instead of going out.

3. Reconsider subscription services and monthly memberships. How much do you spend per month, and do you use them enough to get your money’s worth? If you have gym membership, can you work out at home or enjoy public recreation areas? How many apps or streaming video or music services do you need?

4. Minimize account fees. Pay attention to when a bank account incurs fees so you can avoid them when possible – for instance, maintain the daily minimum account balance, use your debit card a specified number of times during the month, or stay below a maximum number of withdrawals from a savings account. And of course, avoid overdrafts.

5. Consider using automatic bill pay options through your financial institution or the billing entity, like your utility company. Then you’ll avoid accidental late payments and the fees that come with them.

While saving for a down payment seems daunting, it does not have to be. Understanding the facts about what’s required to buy a home and having a savings plan can put you well on your way to achieving your homeownership goal.

Commentary |
Stop the invasion of our nation

by Glenn Mollette, Guest Commentator

If President Biden could announce on November 1, 2024 that all student debt is forgiven, he would do so. That would surely be a way to get a few more votes. If you have a $100,000 student loan, then you have a heavy burden of paying back that loan. To suddenly have the debt cleared would be a marvelous feeling.

Would this make you feel like Biden is a great President? Would this boost your confidence in his ability to lead our nation? Or, would you see such an act as a last-ditch effort to do whatever it takes to stay in the oval office for four more years?

Thousands of Americans have carried the weight of student loans for years. Thousands have paid back the loans. Loans are never fun to pay back. Car payments, house payments, and credit card debt are tough to carry for years and years. Is it fair that many Americans have paid off student debt but suddenly thousands of Americans could have a large portion of their debt wiped away? It doesn’t seem fair. Is it good for America? Many more Americans need to borrow money for college. Paying back student loans is one way to keep money circulating back into the government coffers.

What if someone paid back 75% of their loan in ten years then the other 25% would be forgiven? What about a two or three percent interest rate on student loans? What if people went to community colleges their first two years? There has to be a better way than just waving the magic wand and clearing debt to boost popularity.

Interest rates are going to come down between now and November 1. A 30-year mortgage by November 1 will be closer to six percent. The stock market is roaring. If you have some money in stock then you have to be enjoying the increase. What goes up always comes down some, eventually. Don’t look for it to go down much between now and November first.

The one thing President Biden doesn’t seem to want to do is stop the invasion of America. The invasion of America continues. Allowing up to 8.5 thousand illegals per day is not a fix. Outlaw gangs have taken over parts of South America in Columbia and Venezuela and parts of central America. Gangs have taken over Haiti. The cartel seems to roam freely in Mexico. These outlaws are coming into America. Violence, stealing, and killing are all they know. They will fight with and kill police officers, assault and murder women, steal from you, and terrorize our communities. Most of our small American counties are understaffed to protect our citizens from gangs armed with semi-automatic weapons.

The invasion must be stopped today. Border states deserve all the help the federal government can give in securing the borders immediately instead of making it difficult on the states.

Soon there will be so many illegals from China and throughout the world in our country that we will not have enough police or military to protect ourselves. We see this happening before our very eyes.

The issues of student loans, interest rates, gasoline prices, inflation, and much more impact our lives significantly. Nothing is impacting our nation like the invasion.

Please Mr. President and Congress, stop the invasion of our nation.

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He is the author of 13 books including Uncommon Sense, the Spiritual Chocolate series, Grandpa's Store, Minister's Guidebook insights from a fellow minister. His column is published weekly in over 600 publications in all 50 states. The views expressed are those of the author and are not necessarily representative of any other group or organization. We welcome comments and views from our readers. Submit your letters to the editor or commentary on a current event 24/7 to editor@oursentinel.com.

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New banking facility opens in St. Joseph

ST. JOSEPH - St. Joseph Community Bank is now open at its new location at 802 E. Warren Street. On February 8, the new location will host its "Home Opener" open house to showcase the full-service facility from 4pm - 6pm. Illini head baseball coach Dan Hartleb and several players will be at the event to greet guests and sign autographs.

The lobby is now open Monday-Friday 8am - 5pm and on Saturday by appointment. The drive-up hours are Monday-Friday 7am - 6pm and Saturday 8am - 12pm.

In addition to traditional teller operations, the new facility will have safe deposit boxes, drive-up lanes, an ATM and night depository, and a coin machine available to the public.

The loan department will be led by Executive Vice-President and Senior Lender Les Hoveln and Jason Snyder, Vice-President of Lending.

For more information about the bank's services and upcoming "Home Opener", call (217) 469-2100.

Denied a home loan? Steps you can take to avoid it

Good credit demonstrates responsible money management and gives you more purchasing power

StatePoint Media - You have researched the best areas to live within your budget. Spent countless hours visiting homes or viewing them online and talked to seasoned homeowners to ensure you haven't missed anything. You finally make an offer on your dream home that is accepted, and then the worst happens, the bank won't okay your loan.

If you dream of homeownership, having your mortgage application denied can be devastating. If this does happen to you, it’s important to remember that you’re not alone. Thirteen percent of all purchase mortgage applications -- a total of nearly 650,000 -- were denied in 2020, according to federal government data.

Before quickly reapplying for a loan, it’s important to first understand the reasons your loan was denied. The lender is required to disclose that information to you within 30 days of its decision. You can also call your lender for further explanation. Having this knowledge will help you work toward building your eligibility for a mortgage.

Illustration: Clker-Free-Vector-Images/Pixabay

In some instances, the situation involves a quick fix, such as providing missing or incomplete documentation. However, if the reasons cited for your application denial involve down payment cost, a low credit score, an adverse credit history or a high debt-to-income ratio, here are six steps you can take toward recovery:

1. Consult a Housing Counselor. Consider speaking to a community-based credit counselor or a HUD-certified housing counselor. They can help you create a plan to increase your savings, decrease your debt, improve your credit, access down payment assistance or take advantage of first-time homebuyer programs.

2. Improve Your Credit. In a 2022 Freddie Mac survey of consumers denied a mortgage application in the past four years, three in five cited debt or credit issues as reasons given for their initial denial. If this describes you, take time to improve your credit profile before applying for another loan. Good credit demonstrates responsible money management and gives you more purchasing power, opening doors to better loan terms and products. Visit creditsmart.freddiemac.com to access Freddie Mac’s CreditSmart suite of free financial education resources that can help you understand the fundamentals of credit and prepare you for homeownership.

3. Pay Down Debt. In the application process, lenders will look at your recurring monthly debts, such as car payments, student loans and credit card loans. By lowering or paying down monthly debts, you can build a positive credit history and lower your debt-to-income ratio. Not sure where to start? Tackle your debt with the highest interest rate first.

4. Obtain Gift Funds. If you’re short on money for your down payment, you may be able to use gift funds from a family member to decrease the amount you need to borrow.

5. Find a Co-Signer. A co-signer applies for the loan with you, agreeing to take responsibility for the loan should you default. The co-signer’s credit, income and debts will be evaluated to make sure they can assume payments if necessary. In addition to ensuring your co-signer has good credit, you should make sure they are aware of this responsibility and have sufficient income to cover the payment.

6. Look for a Lower-Cost Home. Remember, you should only borrow an amount you feel comfortable repaying. You may need to look for a lower-cost home than you’re financially prepared to purchase and maintain.

For more information and additional resources, visit myhome.freddiemac.com.

If your home loan application is denied, don’t panic. There are ways to build your eligibility so that next time, your mortgage application is more likely to be approved.

You have a new business idea, here is how to finance your dream job

Photo:NAPSI

Aaron Mulherin, owner of AM Glass, goes over company financial details with his SCORE mentor John Brockhardt. There are many options for financing a new or existing business, and a mentor can help guide you.

NAPSI -- If you’re wondering how to finance your startup, you’re not alone. Depending on your business, financing it can either be relatively simple, such as drawing on your personal savings, or more complex, perhaps requiring you to seek loans or investors.

Here are some common ways to finance a business, along with pros and cons to keep in mind:

Personally Finance Your Startup

In the digital age, many small businesses can be up and running with little to almost no capital, which can make financing your business with your own money more realistic.

Personally financing your business has some distinct advantages—you retain full control over your company, take on zero debt and have no loan payments to worry about.

On the flip side, you could lose money if the business doesn’t work out.

The bottom line is that if you’re willing to take on personal financial risk, using your own money is one of the most straightforward methods of funding your startup, while maintaining full control.

Ask Friends and Family For Financial Support

Help from friends and family is another common method for financing a business. This could look similar to personal financing or a private loan.

The advantages depend on the terms of the contributions. You might retain full control over your company and not have to take on debt or you may have to relinquish some control and agree to repay what you’ve received plus interest.

Take Out a Bank Loan

Banks and credit unions are another financing option. However, you’re taking on debt and will need to make regular payments on the loan, which can cut into cash flow. On the plus side, financing your business with a loan means that you retain full control of your company.

Be prepared to show a bank a business plan, expense sheets and financial projections, often for the first five years.

Securing a bank loan is a challenging process. A mentor can help you prepare a loan application, so you have the best chance of securing the loan you need.

Bring in an Outside Investor

Bringing in an outside investor is typically not a realistic option for most businesses. The experts at SCORE found that only about 2% of businesses have a business model that would interest investors.

Most often, equity investors require not only a percentage of ownership in the company but an “exit plan”—otherwise known as your plan for how they’ll recoup their investment and see a healthy return.

With an investor, though, you get relatively quick access to capital without periodic loan payments, potential access to business expertise, and connections you might lack.

If your startup requires a significant capital investment, bringing in an outside investor may be a smart option.

Rally Support Through Crowdfunding

Once considered an unconventional way to finance your business, crowdfunding is now a common method for raising startup funds.

The structure of a crowdfunding campaign depends on your platform host. The idea is to encourage small contributions from a large pool of people. Funders receive gifts for their support which usually includes the product or service you sell.

The downside to crowdfunding: it takes a lot of effort and money and failure is very public, unlike with private ventures.

Choosing the Right Financing Option is Key

As you develop your startup, connect with a SCORE mentor. They can guide you toward the right financing options for your needs and lead you on the pathway to success.

Learn more about traditional and creative ways to help your business by visitig www.score.org.

Getting a handle on bank overdraft fees

Photo: Andre Taissin/Unsplash

Overdraft fees can break your piggy bank. To help their customers, some financial institutions have increased their flexibility with regards to how and when overdraft fees are accessed and when funds are unavailable in an account.

StatePoint Media -- When your bank account balance is low, life can be stressful. For example, when it’s time to pay large expenses that can’t wait, like car loan payments or monthly rent, it’s all too easy to overdraft a bank account. This is especially true if you don't have a ready line-of-credit or a savings account you can dip into in an emergency. The current rate of inflation in the United States doesn't make it any easier either.

In fact, U.S. consumers pay billions of dollars a year in overdraft fees for covering all types of purchases, both large and small.

There is no doubt that overdraft fees serve as a pain point for many consumers, and as the issue of overdraft continues to be discussed and debated, several banks have taken different approaches in response.

Some have taken steps to address overdrafts, mostly by eliminating fees or eliminating the ability to overdraft completely.

Alternatively, PNC Bank now offers a solution that provides customers with greater control in these circumstances. Low Cash Mode, a tool that offers transparency and choices to help customers avoid fees by managing low-cash moments or mistimed payments, is a feature available in the PNC Virtual Wallet account through the PNC Bank Mobile app.

The feature notifies you when your available balance is near or below zero and gives you at least 24 hours (and often more) to bring a negative balance to at least $0 through a deposit or funds transfer before incurring a fee. It also gives you the choice of whether to pay or return certain pending checks and electronic payments when your balance is nearing negative territory.

The Value of Overdraft

The ability to choose to overdraft can help consumers avoid bigger repercussions like credit impacts and loss of access to banking that unpaid bills or late payments can cause. Allowing customers to make their critical payments – albeit for a small fee – sometimes makes a difference that helps allow them to stay in the banking system.

For example, if you opt to pay your rent or car payment – and avoid a penalty or a negative impact to your credit score by simply paying an overdraft fee – then the option to overdraft has provided a value.

“Removing the ability to overdraw an account doesn’t address the fact that many customers need to pay bills, even during temporary cash shortfalls,” says Alex Overstrom, head of Retail Banking at PNC Bank. “The key is that the consumer should be making the decision to incur or avoid fees, not just the bank.”

Control Pays Off

This level of control has demonstrated real results. PNC reports that 64% of customers who have a negative-balance event cure their account in time to avoid incurring a fee.

“Sometimes people just need a little more time to cover important expenses,” says Overstrom. “And in these moments, they should have choices to make things right.”

Philo Exchange Bank to open new bank in St. Joseph

PHILO -- The Philo Exchange Bank announced this morning its plan to open a new bank facility in St. Joseph. The new location at 109 N. Main Street is tentatively scheduled to open on December 1, 2021.

The bank will be located across the street from the Busey Bank branch office which will cease operations almost two weeks earlier on November 19.

In addition to bank teller operations, the branch will also have an in-house loan department overseen by Royal native Les Hoveln. Formerly with Gifford State Bank for the past 16 years, he will serve as Executive Vice President and Senior Lender. Hoveln, who transitioned to the new position on August 3, has more than 35 years of financial lending expertise.

According to today's press release, the Main Street location "will serve as a temporary facility for the bank as it establishes a permanent location in the next 12 to 24 months."

"We are excited for this opportunity to expand our bank footprint to the St. Joseph area," Hoveln said. "We look forward to providing the community with a banking partner that can assist in all banking needs while providing friendly customer service that has served six generations of customers."

Opening its doors back in 1883, Philo Exchange Bank has grown to operate three existing locations in Philo, Allerton, and Broadlands.

Over 150 area businesses aided by loan program

The federal government has provided more than $590 billion dollars to lenders to distribute low-interest loans to the self-employed, businesses, companies and nonprofit organizations affected economically by the COVID-19 pandemic. ProPublica, an independent, nonprofit newsroom that specializes in investigative journalism, maintains a database listing details of the more than six million loans made nationwide .

More than 200 Illinois companies received PPP loan dollars between $5 and $10 million dollars, the maximum amount. The majority of the 271,921 loans made to businesses in the state went to borrowers that asked for $150,000 dollars or less. As of today, that number stands at 238,281.

The database, which is searchable by name, industry, city and zip code among other criteria, reports that 100 businesses in the St. Joseph 61873 zip code and 52 in Tolono's 61880 were awarded loans. The online resource lists the business name, amount and date the loan was approved.

Information from other loan programs, such as Economic Injury Disaster Loans, are currently not reported in the ProPublica resource.

Search for PPP loan applications by organization, lender, zip code and business type.

For example: trucking, hospice, television, Kasowitz Benson Torres, 90210, Sole Proprietorship