Southwest Solutions, JPMorgan Chase & Mission Asset Fund Launch Peer Lending Circles to Boost Credit Scores of Detroit Reside...
January 28 2016 - 10:49AM
Business Wire
Lending circles will facilitate zero-interest
loans to help Detroit residents build credit, increase assets and
improve financial health
Southwest Solutions, JPMorgan Chase & Co. and Mission Asset
Fund (MAF) today announced the launch of Lending Circles, a new
social loan program that will allow Detroit residents to safely
build credit through zero-interest loans. Participants make monthly
loan payments and take turns receiving zero-interest social loans,
ranging from $300 to $2,500. All loan payments are reported to
credit bureaus, enabling participants to build a credit history,
raise credit scores and work towards greater financial
stability.
MAF’s award-winning Lending Circles are a fresh take on social
lending, helping participants build credit while increasing assets
and improving financial health. The average credit score increase
for participants is 168 points.
“More than 30% of the people we’ve assisted with their financial
situation in the last two years start with no credit history, and
those with credit start with an average credit score of only 547,”
said Hector Hernandez, executive director of Southwest Economic
Solutions. “Lending Circles will enable our clients to build and
enhance their credit so they can take advantage of opportunities to
become homeowners, entrepreneurs and college graduates.”
Bringing Lending Circles to Detroit is the next step in JPMorgan
Chase's $ 100 million commitment to Detroit’s economic recovery.
JPMorgan Chase recently awarded MAF a $1.5 million, three-year
grant to expand Lending Circles to even more communities across the
country and develop new technology to connect clients with
on-demand loan information. Southwest Solutions is part of a
growing network of 53 Lending Circles providers – and the first in
the state of Michigan.
“We are proud to partner with Southwest Solutions and Mission
Asset Fund to expand Lending Circles to Detroit,” said Colleen
Briggs, Program Officer, Financial Capability Initiatives, JPMorgan
Chase. “Building a solid credit score is the critical first step to
managing daily financial lives and accessing affordable capital to
achieve long-term financial goals, such as purchasing a home or
starting a business.”
Of the 27 zip codes in the City of Detroit, the median credit
score among residents is below 600 in all but one, according to
Urban Institute tabulations of credit bureau data. Furthermore, a
2015 report from the Consumer Financial Protection Bureau reported
that one in four Detroit households are "underbanked." Without
sufficient access to checking or savings accounts, Detroit
residents often turn to payday lenders and check cashers to meet
their basic financial needs.
“Without credit scores, there are no ‘good options’ when you
want to start a business or get a small loan,” said Jose A.
Quinonez, CEO, MAF. “Now, with the support of JPMorgan Chase and
partners like Southwest Solutions, we are working together to
provide innovative solutions to help Detroit residents
succeed.”
About Southwest Solutions
For more than 40 years, Southwest Solutions has pursued its
mission to help build a stronger and healthier community in
southwest Detroit and beyond. The nonprofit organization provides
more 50 programs and partnerships in the areas of human
development, economic development and resident engagement. These
three areas together form a comprehensive neighborhood
revitalization effort that helps more than 20,000 a year. For more
information, please visit www.swsol.org.
About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE:JPM) is a leading global
financial services firm with assets of $2.4 trillion and operations
worldwide. The Firm is a leader in investment banking, financial
services for consumers and small businesses, commercial banking,
financial transaction processing, and asset management. A component
of the Dow Jones Industrial Average, JPMorgan Chase & Co.
serves millions of consumers in the United States and many of the
world's most prominent corporate, institutional and government
clients under its J.P. Morgan and Chase brands. The firm uses its
global resources, expertise, insights and scale to address some of
the most urgent challenges facing communities around the world
including the need for increased economic opportunity. Information
about JPMorgan Chase & Co. is available at
www.jpmorganchase.com.
About Mission Asset Fund
Mission Asset Fund (MAF) is a San Francisco-based nonprofit
dedicated to helping financially excluded communities – namely,
low-income and immigrant families – gain access to mainstream
financial services. Learn more at missionassetfund.org and
lendingcircles.org.
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version on businesswire.com: http://www.businesswire.com/news/home/20160128005989/en/
JPMorgan Chase & Co.Alexis Martin,
215-864-5715alexis.a.martin@chase.com
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