United Way and SPIN Launch Financial Stability Center in Lynn

LYNN, MA - In a community where unemployment has climbed to double digits over the past year, United Way Massachusetts Bay and Merrimack Valley and Serving People in Need, Inc. (SPIN) are today launching an innovative center to help families in Lynn move beyond safety nets and achieve financial stability. This morning, Mayor Chip Clancy and Federal Reserve Bank AVP Marques Benton are joining United Way and SPIN as they host the grand opening of the United Way Financial Stability Center, powered by SPIN, at 270 Union Street in Lynn.

The Center aims to help individuals and families break out of intergenerational poverty by creating an integrated path from crisis to financial stability. It will bring together a network of more than a dozen profit and non-profit organizations to provide an array of financial education, support services, and other financially-focused opportunities.

"What we know, from both national research and from working with the best health and human service agencies in our region, is that safety nets and benefits alone aren't going to be enough to empower families to climb out of poverty," said Michael K. Durkin, president and CEO of United Way of Massachusetts Bay and Merrimack Valley.  "They need skills, jobs, savings and assets to build brighter futures for them tomorrow and strengthen the economic prosperity of Lynn."  United Way will commit $1 million over the next five years to support the Financial Stability Center.

Lynn has been hit particularly hard by the current recession. The city's unemployment rate dramatically increased from 6.4 percent in June 2008 to 10.8 percent in June 2009.  The Financial Stability Center will combine response for immediate needs with individualized plans for long-term economic empowerment. For example the IRS estimates that $3.2 million in Earned Income Tax Credits is left behind each year by eligible workers in Lynn who are simply not aware that this credit is available. The United Way Financial Stability Center, powered by SPIN will promote EITC awareness in Lynn and counsel clients on free tax filing, matched savings accounts, and basic banking information.

"While the current economy has certainly exacerbated many residents' financial challenges, poverty in Lynn, like elsewhere, has often been intergenerational and deep-rooted," said Mark DeJoie, executive director of SPIN. "Our goal with the Financial Stability Center is to break that cycle."

"The United Way Financial Stability Center, powered by SPIN, is a great example of the impact that can be achieved when the community comes together," said Mayor Clancy. "This partnership, which has engaged individuals and organizations across Lynn, will create a network of support to help people climb out of poverty and advance the local economy."

United Way and SPIN estimate that in the first year 500 families (1500 individuals) will be connected to the services they need to move toward financial stability.  Some of the opportunities include:

• Financial Education, Credit Counseling, Basic Banking
• Free Tax Preparation/ EITC (Earned Income Tax Credit)
• Computer and job-related skills (ESOL, ABE, GED)
• Financial Aid Application Assistance
• Matched Savings
• Housing Services Referral, Homebuyer Education, Foreclosure Assistance
• Case Management with cross-trained staff