As a small business lender, Mountain Association staff often talk with aspiring business owners about their financial history. Conversations sometimes evolve into discussions of traumatic events that clients have been through or are still battling. Often, these events have negatively impacted their financial history.
In order to be more prepared to navigate these conversations and support clients, our staff recently went through training on trauma-informed approaches, as well as training on intimate partner violence and how financial abuse can be part of that picture.
Financial abuse is often cited by victims of abuse as the main reason that they stayed with or returned to an abusive partner. As a lender who has to look at a person’s financial history, the training brought up the following questions for us as an organization in considering ways we can create systems that support victims/survivors.
Support for Recovering from Financial or Other Abuse
What resources can we provide to help clients subtly open separate bank accounts to gain independence? What free budgeting tools and education can we offer clients to empower their financial management skills and boost clients’ confidence in financial decision-making? How can we advise clients on safely building up emergency funds even with limited resources? How can we help clients improve credit scores damaged by abuse so they can access affordable housing, etc. if needed? What partnerships with local organizations can we form to refer clients to counseling, legal help, shelter options, etc.?
Over the next several months, we will be working to answer these questions and compile resources to share with clients and organizations similar to ours.
The following are some resources we already know of:
- Financial Safety Planning – resources about how to know if you and your partner have a healthy financial relationships and tips toward building one
- Redbud Financial Alternatives – a nonprofit serving Breathitt, Knott, Leslie, and Perry and surrounding Kentucky counties with personal loans and financial action plans/education; credit counseling can potentially include more counties
- AppalRed – serving 37 counties around Eastern Kentucky with free legal services
- Love is Respect – an organization providing resources about relationship abuse
- Map of Kentucky shelters and resource centers available
Recognizing Abuse as Financial Lenders
Beyond training in how to take a trauma-informed approach to our work with clients, how will we train employees to recognize signs of financial abuse and offer help safely and discretely? Since financial abuse is often intrinsically linked to domestic violence, the first step in advising a client is to ensure their safety. We need to evaluate whether the steps we advise them to take would put them at risk of retaliation from their partner. For example, before advising the client to open up their own checking account, help determine if their partner would be able to access or know about the account.
Though Mountain Association never shares details of any person’s loans to any party other than original borrower without explicit permission, what other security measures should we consider? What can we add to our website, marketing material and loan documents to share resources with clients who might be in abusive situations? What adjustments can we make to loan products and policies to accommodate clients trying to leave abusive situations?
Here are some useful resources for organizations to learn more about this issue:
The Importance of a Trauma-Informed Approach
Adverse Childhood Experiences (ACEs) or Adverse Life Experiences are those potentially traumatic events that occur in childhood or throughout life. These include experiencing violence, abuse or neglect, witnessing addiction or violence in the home, having a family member attempt or die by suicide, and more. In the US, 64% adults will experience at least one type of trauma before age 18.
Trauma from these experiences can alter brain development, hormonal systems, genetic expression and cause long term behavioral/health effects. Addressing root causes via trauma informed care, resilience building and community support is key. We all have a role in building a better world for everyone.
Here are some useful resources for organizations to learn more about trauma-informed approach:
- Empowered Soul Coaching – Angelika Weaver is a Victim’s Advocate, Community Organizer, Empowerment Coach, & SEKY Native. She led our staff training and is an excellent resource.
- BOUNCE Coalition – an organization based in Kentucky providing training and resources.
Contact
We’d love to hear from you with questions or resources as we work to better serve our clients. Please contact Ariel Fugate at ariel@mtassociation.org or 859-302-3868
