Women's Business New York, "Spotlight", December 2001
Economic Equality Guides Merlino's Actions
by Stacey Corso

Much of Nell Merlino's life has centered on the theme of economic equality: How do women and people of color achieve it and how do they sustain it?

After graduating with a degree from Antioch College in 1973, Merlino went on to organize labor unions. Her involvement in the Labor, Civil and Women's Rights Movements prompted her to fully embrace all this idea of economic equality.

"It was at the beginning of the Women's Movement and we were well into the Civil Rights Movement," the Trenton, NJ native recalls. "One thing that struck me, in terms of both political movements, was this whole issue of being able to economically support yourself. What struck me and still does, are issues of full and total equality. How do women and people of color get there?"

This philosophical premise clearly manifests itself in the work that she does today both as co-founder and chief executive officer of Count Me In for Women's Economic Independence and as the head of a strategic communications firm called Strategy Communication Action.

A year ago, Merlino co-founded Count Me In, a 501(c) nonprofit organization based in Manhattan, with Iris J. Burnett. Count Me In provides micro loans to female small business owners. The group is also working to change the credit-scoring system used by financial institutions when screening female loan applicants.

But first things first-how, can women access capital via Count Me In? Women can apply for a micro loan, which ranges between $500 and $10,000, simply by going to Count Me In's Web site, Merlino says. "We are the first organization in the country, and I think in the world, that makes micro loans available to women online."

Qualifying for a loan from Count Me In is easier than qualifying for a loan from a major financial institution or bank, Merlino contends. Often, larger banks shy away from fronting such small loans, she adds. Furthermore, their application systems have biases that make it harder for women to get approved, she says.

"But any woman qualifies by going to our Web site online at www.count-me-in.org and clicking on the loan application, filling it out and sending it in," Merlino says.

"The applications process is designed to get women to think about what the different issues are when starting a business and devising a business plan," she explains. "We don't require a business plan, but we think it's important to think about the questions that are raised in one.

"Count Me In affords women who qualify for these loans an opportunity to build a business. It's about economic equality and economic independence," she says.

Count Me In raises all of its own money; it doesn't rely on any major financial institutions as underwriters. Instead, the group seeks out contributions. "Right now, we are in need of donations," she says.

The organization, however, does have relationships established with various corporations that sponsor some of the nonprofit's initiatives, Merlino adds.

In addition to lending money, Count Me In is working to change the wording used on small business loan applications for women.

Kathy Keeley, the organization's chief credit officer, worked with American Express and another firm to develop this new system, Merlino explains.

"We've changed some of the questions to better reflect women's lives from all different economic classes," she says. "In a lot of cases, women's economic lives are different because we take time out to take care of our children, our sick parents, etc.

"The other think that makes women's economic lives different is that we often are looking for smaller amounts of money," she says. "We tend to start smaller businesses and banks aren't always interested in handing out small loans.

"On typical business loan applications, there's always a question that asks you how long you've been in business," she says. "Instead, we ask such questions as: 'How long have you been making your product or delivering your service?'

Merlino says that as a lender, Count Me In wants to make sure that a borrower can completely repay her debt. "We ask: 'Can you deliver the service to make the money to pay us back?' We want the money to loan to other women.

"If you ask a woman how long you've been making your products or delivering your service, we get answers like 'I've been cooking since I could stand up on a chair at the stove,' which says they've been cooking for a long time," she adds. "We obviously see that they can actually run a catering business based on some other questions we have included in the-loan application process as well.

"You really do start to understand more about the person and you don't hang people up with this notion of, 'When did you start your business?

"I think it's a question left over from when people were predominantly starting manufacturing businesses," she insists. "It's not as applicable to service businesses, not to mention womanowned businesses. Those are the kinds of things that we have changed to get a more accurate picture of what the woman wants to do in the business and whether she's got the wherewithal, ability and knowledge to do it."

Merlino also operates a for-profit communications firm. Founded in 1989, Strategy Communication Action develops strategic communications campaigns for not-for-profit and for-profit entities.

In that role, Merlino created and produced Take Our Daughters to Work Day eight years ago for the Ms. Foundation for Women.

She also developed the NGO Forum on Women in Beijing '95, Earth Day's 20th Anniversary, "Picture What Women Do" for Lifetime Television and the YWCA Week Without Violence.

"I often collaborate with my brother Joe Merlino, who has, a company called Purpose Networks," she adds. "We are currently working on something called the Net Aid Global SchoolHouse, which is looking at the 125 million children in the world who aren't in school and asking other companies and organizations to help get those kids in school."

Prior to starting Strategic Communication Action, Merlino ran the New Jersey Department of Human Services with four other people. She has also worked on two Presidential campaigns. Merlino currently resides in Manhattan.

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