Capital Good Loan Fund
the problem:
I am working with a team of students to create a micro-finance organization that will address several critical needs in Providence. First, our target population--immigrants, minorities, low-income and owmen--are underbanked. That is, many of them do not have access to bank accounts or affordable loans. What's more, the large immigrant community finds it difficult to raise the money needed to apply for legal permanent residency or citizenship. As a result, they are often forced to go to loan sharks. Finally, entrepreneurs in our target population are unable to avoid following through on their business ideas because they are unable to get the affordable loans and business skills/training they need to succeed.
vital stats:
people impacted:
0people involved:
5why it's important:
Our organization, called Capital Good Fund, will provide low-interest micro-loans (between $500 and $5,000) for two purposes:
1) so that entrepreneurs can get their business up and running
2) so that immigrants can apply for legal permament residency or citizenship. These loans will be paid back through the Earned Income Tax Credit, which is a tax credit designed to help the working poor.
In addition to dispersing loans, our organization will also connect each borrower with business coaches from the community and/or Brown University, who will help the borrower succeed, and work with them to ensure re-payment in the event they run into difficulty.
the plan of action:
In June of 2008 we began researching U.S. based micro-finance initiatives. We soon realized that though micro-finance is alive and well in the U.S., there is lots of room for innovation in the field. From there, we began meeting with and cultivating community partners, who expressed to us that there is a strong need for affordable loans in the community. Finally, we conducted three focus groups to better gauge the need of potential borrowers.
So far we have raised $7,000 for a pilot phase in January. We are currently raising more funds so that we can have a sizable pool of money for the pilot phase.
how you can get involved:
We need help with fundraising, determing our organizational structure, and providing business coaching to borrowers.
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