Financial
Wellbeing

Financial
Wellbeing

Advocating for small business support.

A second round of funding for the Paycheck Protection Program (PPP) was announced in early 2021 through the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act. Forgivable PPP loans were available through the Small Business Administration (SBA) and helped provide relief to businesses that were financially impacted by the COVID-19 pandemic. Funds were available for nonprofit organizations, veteran-owned businesses, small businesses with less than 500 employees and others. PPP loan funding could be used for rent, mortgage payments, utilities, payroll costs, and more.

The second round of funding gave small business owners another opportunity to apply for funding if they missed the first round of PPP loans in 2020 or allowed them to apply for more funds to support their business. Though there was another tight deadline to apply, our Lending and Business Teams worked tirelessly with our business members on their applications. As a result, we funded 271 PPP2 loans for a total of $11.7 million.

Soon after applications for PPP2 loans closed, the federal government announced guidelines around how to apply for PPP1 loan forgiveness. Our teams once again jumped in to make sure our business members met their deadlines to apply for forgiveness within 10 months of loan disbursement. Through these efforts, a majority of our business members obtained full forgiveness of their PPP1 loans through the SBA.

While continuing to provide updated communication to our members around PPP loans and forgiveness, we also urged small business owners to join us in support of Bill S. 4117. This bill would forgive PPP loans of less than $150,000 upon the borrower’s completion of a simple, one-page forgiveness document. We urged our business members to write to the Senate in support of this bill, and these efforts paid off when the bill was passed later in 2021.

Our work supporting our members through the PPP loan process and our work together in support of Bill S. 4117 was recognized during the National Association of Federally Insured Credit Unions (NAFCU) Congressional Caucus. Our Government Affairs Team accepted the Paul Revere Advocacy Award, which recognizes a NAFCU-member credit union advocate and his or her grassroots and political efforts.

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The average distributed Paycheck Protection Program loan was around $53,000.
Local support for a local entrepreneur.

Alfred M., the owner of MC Group LLC (a construction firm based in Livingston County) and a Lake Trust business member, worked with us for over 3 months on his PPP loan. One of the stipulations to qualify for a PPP is that the business must be in good standing with the State of Michigan. Unfortunately, Alfred received some misinformation about the process to file his annual business statements. This was a common issue that we helped several other business owners sort out during this time.

We connected Alfred with LARA, the state department that handles business registration and reports, but there were several challenges he encountered. During this process, Alfred was traveling back and forth between Michigan and Arizona. Between the time zone differences and unavailability at the State of Michigan, Alfred had a very hard time getting the answers and support he needed.

With our support and guidance, he was finally able to get his business back in good standing and secure a PPP loan, on the last day in the last hour it could be processed. He was so thankful and shared that without the support from our team, his business would have struggled greatly during this time.

The power of home.

Your home is more than just a place. It’s a feeling too. It represents comfort. Peace. And family. In 2021, our members had the opportunity to save on their home loans and share the feeling of home with someone in need through our continued home loan giveback program. By working with us and our partners at Mortgage Center, our members received $200 back after closing their home loan. To keep our offer competitive in an aggressive lending market, the amount back to members increased to $500 in September 2021. As part of this ongoing program, an additional $200 was donated to the Lake Trust Foundation for every home loan application received between May 13 and December 31, 2021 that resulted in a new mortgage or refinance. Our members have already received $125,000 back from our home loan giveback program. And a total of $73,200 will be donated to Michigan housing nonprofits on behalf of Lake Trust members.

As a result of our 2020 home loan giveback program, our members made it possible to donate over $40,000 to local nonprofits through the Lake Trust Foundation. In the summer of 2021, this donation was divided between the following nonprofits, with each organization receiving $10,000: Holland Rescue Mission in Holland, MI; Lighthouse MI in Pontiac, MI; Shelterhouse in Midland, MI; and SOS Community Services in Ann Arbor, MI.

Check out how our $10,000 donation made an impact at each nonprofit:

  • Holland Rescue Mission: It costs around $60 to help house someone in need for one night. That means our donation could provide one night of shelter for 167 people.
  • Lighthouse MI: Our donation was enough to feed four families for one year through the food pantry program.
  • Shelterhouse: Our donation helped them continue to offer their services to the community and provide housing opportunities for individuals and families in need.
  • SOS Community Services: Donations to SOS’s Rapid Rehousing Program have a 4:1 match by the federal government, so our donation could help five families put homelessness behind them.

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Since launching the home loan giveback program in 2019, Lake Trust members have made it possible to donate $95,232 to Michigan housing nonprofits.

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Since launching the home loan giveback program in 2019, Lake Trust members have made it possible to donate $95,232 to Michigan housing nonprofits.

We were recognized for our health initiatives and awarded a Best and Brightest in Wellness award for the fourth consecutive year.

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As of December 31, 2021, $82 million of our assets are concentrated in community impact lending, investing and deposit products. This represents an increase of $28 million from December 2020.

Improving access in underserved communities.

In 2021, we received a third Community Development Financial Institution (CDFI) grant to continue our work supporting individuals and small businesses that may traditionally lack access to capital. This support enabled us to originate $154.5 million in qualifying CDFI loans, with $2.8 million of this funding supporting small businesses, like Bleu Bowtique in Detroit, in the form of microloans. The remaining loan funds were distributed in CDFI-designated communities. These loans help spur economic development by providing access to affordable financial products and services for consumers and businesses in underserved Michigan neighborhoods.

An additional $1.8 million in Rapid Response Program (RRP) funding helped strengthen our role in pandemic relief efforts in Michigan. The RRP is a COVID-relief package that helped us continue to respond to the economic challenges caused by the pandemic in distressed or underserved communities. This also includes support for small businesses.

CDFIs have proven to be reliable and effective vehicles for ensuring the healthy development of underserved communities. To advocate for the work we’re doing at Lake Trust, our Lending and Government Advocacy Teams collaborated with other financial institutions in Michigan to share the impact of CDFIs with the Michigan Economic Development Association. We advocated to have funds from the American Rescue Plan Act set aside for use in low- to moderate-income communities. With access to more funding options, start-ups and small businesses can thrive and add jobs in our communities, make a positive local economic impact, and make cities and towns feel unique.

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As of December 31, 2021, $82 million of our assets are concentrated in community impact lending, investing and deposit products. This represents an increase of $28 million from December 2020.

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