New Community Loan Center Provides Opportunity For Small-Dollar Consumer Loans
Southeast Economic Development Fund, Inc, (SEED$) is pleased to announce a brand-new program, the first of its kind for southeast Missouri. Launched on July 6, 2020, the Community Loan Center of Southeast Missouri, (CLC) is an employer-based small-dollar loan program offered through participating employers in the East Missouri Action Agency service area. This innovative program gives employees better options to borrow money at affordable rates to pay for expenses like car repairs, education, or medical expenses through convenient payments.
Keri McCrorey, Executive Director of East Missouri Action Agency says “We are excited for this opportunity to provide our community with a product that helps individuals with a lower interest loan as an alternative to payday and title loans.”
In states like Missouri, where there is minimal regulation, many lenders charge borrowers the equivalent of 463% for short- term loans. Generally, these loans must be paid in full in about two weeks. Working Americans need a better alternative to high-cost loans. CLC offers that alternative with loan amounts of $1,000 and gives borrowers 12 months to repay the loan with payments no more than $23/week for an unsecured personal loan with no prepayment penalties.
The Community Loan Center wants to reach out to local businesses who want to help their employees. Employers can make the loan program available to their employees as part of their employee benefits package, which costs the employers nothing. When an employee needs a loan, they go to the Community Loan Center website to complete a loan application and the loan funds are then deposited into the borrower’s bank account.
Southeast Economic Development Fund, Inc was created in 2014 in an effort to assist entrepreneurs and small businesses who don’t qualify for traditional bank loans the opportunity to achieve their small business goals. The success of that program has allowed for the small-dollar consumer loan program to be offered as well.
To learn more about how this innovative program can benefit you or your business, please visit us at clcsemo.org