Funding for dreams

Yelena Bibikov may be thousands of miles from her homeland but she’s only steps from realizing her dreams. Back in Kazakhstan, Bibikov’s religious beliefs kept her on the lower rung of the work force. Twelve years and a host of life experiences later, she’s creating a successful sewing business in Spokane Valley.

Bibikov is learning about tax laws and licensing requirements through Refugee Small Business classes offered by Spokane Neighborhood Action Programs, a local nonprofit.

SNAP offers classes and financial programs for low- and moderate-income residents. According to Thomas Speight, business development specialist for SNAP, clients qualify based on a variety of factors, including income.

The refugee program is funded by the Federal Office of Refugee Resettlement. For nonrefugees who qualify, Micro Enterprise offers similar financial classes and services, and is funded by grants from state and local government and through the Northwest Business Development Association.

In Russia, Bibikov grew up sewing her own clothes and attended college classes to prepare for a career. After one year at a four-year university, instructors found out that she was a Christian and asked her to leave.

After interning with a professional seamstress, she married her husband and had eight children. The couple worshipped in secret and, when discovered, experienced discrimination that resulted in low wages and lost promotions.

In 1992, her family moved to the United States in search of religious freedom.

Two years ago, after she was laid off from the Spokane company where her husband still works, Bibikov purchased an industrial sewing machine in hopes of charting her own destiny.

Although she could speak English, she was far from knowing the nuts and bolts of running an American business and lacked the writing skills to put her ideas on paper.

“It’s tough to write a business plan when you don’t know the language,” explained Bibikov’s 18-year-old daughter Lidia. “She wouldn’t be able to expand the business if it weren’t for SNAP.”

SNAP representatives helped the seamstress create a business plan and taught her accounting, marketing and other management skills.

By completing coursework and coming up with a viable plan to start or expand a business, participants may qualify for low-interest loans and savings contributions, which provide a 2-to-1 match that can triple savings of $2,000 into $6,000.

SNAP’s Individual Development Account program is kicking in capital for Bibikov to purchase an industrial embroidery machine and expand her business, Lena’s Sewing & Alterations. After she saves $2,000, SNAP will give her an additional $4,000.

People qualifying for the 2-to-1 matching grants can use the money to start or expand a business, purchase a first home or pay for college.

Janet Smith, IDA case manager, said about 150 men and women have started accounts, since the program began in 2001. During that time, she’s watched families tighten their belts and save enough to put a down payment on a home.

“It’s amazing what some of these people accomplish in six months or a year. That’s the beauty of this program,” Smith said.

Another option for people participating in the refugee and Micro Enterprise classes are low-interest loans. If business plans are viable and entrepreneurial hopefuls have acceptable credit ratings, they can qualify for loans ranging from around $500 to more than $5,000, Speight explained, adding that the Micro Enterprise program has nearly 300 people participating.

After surveys found that poor families were using payday loan centers as banks, SNAP started Neighborhood Assets to hook clients up with low-fee banking services. Representatives from SNAP work with Numerica and Washington state credit unions to help clients open accounts and rectify any past overdrafts.

“When you’re on the outside of the banking system you pay a lot of fees,” Speight said. “It can become a cycle. It’s hard for people to get out of it.”

SNAP’s business assistance is helping Bibikov control her own destiny.

“I want to grow my business and hire people,” Bibikov said. “In Russia, Christian people weren’t allowed to be bosses or supervisors. I would have been an employee.”