Nonprofit Lender Provides Loans and Financial Support to Low-Income Families in Texas
The coronavirus pandemic has put more than 3 million Texans out of work. They, along with the nearly 1.4 million Texas households that fall below the federal poverty line, will soon have a new resource to help them build credit and avoid high-interest loans that can cripple their lives. finances.
Capital Good Fund (https://capitalgoodfund.org/en/) is a U.S. Treasury-certified, non-profit community development financial institution that provides equitable loans to low-income families for a variety of key needs, including immigration expenses (citizenship applications, renewal of green card, family petitions, etc.); purchase, repair or refinancing of vehicles; Security deposits; and emergencies, the company said in a press release.
“Our clients are people who cannot access traditional loan products due to their low income, credit, lack of confidence in the financial system, or other barriers,” said Andy Posner, Founder and CEO of Capital Good Fund.
The organization’s entry into Texas on Nov. 9 is part of its overall plan to provide loans to economically disadvantaged people across the country. This is made possible by a commitment of $ 700,000 from JPMorgan Chase.
“Our mission at JPMorgan Chase is to improve the financial health of ordinary people,” said Alice Rodriguez, Community Practices, Engagement and Inclusion Manager at JPMC. “This partnership with Capital Good Fund will boost the financial well-being of hard-working people across our state.”
This support is part of JPMorgan Chase’s five-year, $ 125 million commitment to financial health.
United Way of the Greater Dallas Area is also supporting the expansion effort with a $ 50,000 grant.
“One of the community goals of our Aspire United 2030 is to ensure that more North Texans are financially stable and that access to affordable loans to generate credit is essential to make this a reality,” said said Susan Hoff, Director of Strategy and Impact at Centraide. from Metropolitan Dallas. “Our financial investment in Capital Good Fund will ensure that loans are accessible to those who may not qualify for traditional bank loans and who should resort to predatory payday loans and auto title loans
Statistics show that the average family earning $ 25,000 a year will spend almost as much on financial services and overdraft fees, interest payments, check cashing – as it will on food: 10% of income.
“It’s $ 2,500 that doesn’t go towards food on the table, rent, or spending in the local economy,” Posner says. “By saving borrowers an average of $ 700 in interest charges and increasing their credit by over 90 points, we are changing the lives of individuals, families and their communities. In our first year in the state, we’ll give hundreds of low-income Texans a long-awaited alternative to the state’s payday lending industry, which charges an average APR of 661%, as well as other predatory players, such as rent-owned stores and auto-title and buy-here-pay-here lenders. ”
Capital Good Fund offers personal loans ranging from $ 300 to $ 25,000, with an average interest rate of 13%. The repayment rate for loans to the Capital Good Fund is 95%.
He also offers a nationally recognized financial and health coaching program to help clients establish a financial plan that achieves their life goals, and has tailored the program to the moment, launching a coaching hotline. emergency (https://capitalgoodfund.org/en/coaching/emergencycoaching), reads the press release.
About Capital Good Fund:
Capital Good Fund is a Rhode Island-based nonprofit social change organization that uses financial services to fight poverty in America.
More information: https://capitalgoodfund.org/en