MAOF Expands Innovative Lending Program

JPMC-Thank-You1.21ISSUE/PROBLEM
As the U.S. economy steadily improves, many low-income working families face challenges accessing capital at low interest rate due to a lack of credit history.

IMPACT OF PROBLEM
Unable to access affordable capital impacts family efforts for establishing credit history, accessing affordable debt, or building tangible assets.

SOLUTION OF PROBLEM
To assist families in overcoming this barrier, MAOF has partnered with other organizations to expand our Lending Circles program service area to help the Southeast Los Angeles Latino communities improve their financial portfolio and establish their credit worthiness,

WHAT LENDING CIRLCES ARE
Lending Circles are a time honored tradition of folks coming together to borrow and lend money to each other, all for the sole purpose of building individual credit history and worthiness.

PURPOSE OF LENDING CIRLCES
Lending Circles are credit building microloan that enable individuals to have access to capital to reduce debt, acquire emergency funds, or cover living expenses due to illness or unemployment.

LENDING CIRLCES BENEFITS
As a member of Lending Circles, there are many benefits, however the two biggest benefits comes from: an individual’s ability to build their credit history on a 0% interest loan that is formalized with a promissory note and program agreement; and loan payments that are reported to the credit bureaus, giving each member the ability to build their credit history and credit worthiness. Studies have shown that Lending Circle programs have dramatic impact on credit scores, as much as increasing an individual credit scores as high as 168 points.

OUR PARTNERS
A part of MAOF mission is to improve the socio-economic status of the Latino communities and Lending Circles is one of many program within a larger plan for helping families build assets and their financial portfolio. However, MAOF recognizes that programs like Lending Circles could not be possible without the financial support and amazing generosity once again of our partners: JP Chase Morgan Chase Foundation and Mission Asset Fund.

In addition to JP Morgan Chase investment in MAOF, MAOF plans to use the program with individuals paying the $465 application fee for Deferred Action and the $680 fee for citizenship. Receiving DACA not only grants people eligibility for a Social Security number, but also protects them from deportation.

Thank you again for helping us improve the quality of life of our Latino communities.

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