slide1 l.
Skip this Video
Loading SlideShow in 5 Seconds..
Alliance for Economic Inclusion (AEI) Baltimore, MD PowerPoint Presentation
Download Presentation
Alliance for Economic Inclusion (AEI) Baltimore, MD

Loading in 2 Seconds...

play fullscreen
1 / 12

Alliance for Economic Inclusion (AEI) Baltimore, MD - PowerPoint PPT Presentation

  • Uploaded on

Alliance for Economic Inclusion (AEI) Baltimore, MD. Goals of the AEI Small Dollar Loan Program. Build good savings habits Improved credit-risk profiles/Establish personal credit history Eliminate a common source of personal stress Obtain personal financial education

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
Download Presentation

PowerPoint Slideshow about 'Alliance for Economic Inclusion (AEI) Baltimore, MD' - jaden

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
goals of the aei small dollar loan program
Goals of the AEI Small Dollar Loan Program
  • Build good savings habits
  • Improved credit-risk profiles/Establish personal credit history
  • Eliminate a common source of personal stress
  • Obtain personal financial education
  • Transition from higher cost to lower cost loans
affordable small dollar loan guidelines
Affordable Small-Dollar Loan Guidelines
  • Cost-effective, safe and sound.
  • Affordability
  • Underwriting.
  • Financial education and savings,
  • Community Reinvestment Act (CRA) credit


  • Targeted to certain markets, such as military customers, employers, LMI customers, the underbanked, new Americans, or customers with a limited or non-existent credit history.
  • Developed to address the regulatory recommendation.
  • The goal is to enable insured institutions to profitably serve an underserved market while helping consumers avoid, or transition away from, reliance on high-cost debt.4
cra consideration for small dollar loan programs
CRA Consideration for Small-Dollar Loan Programs
  • Under interagency guidance, examiners may favorably consider small-dollar loan programs when evaluating the lending performance
  • The Federal banking agencies have emphasized that programs that transition borrowers from higher cost loans to lower cost loans are particularly responsive to community needs
  • Small-dollar loan programs may qualify for favorable consideration under the community development service criteria
  • The Baltimore AEI was launched on May 1, 2007.
  • Currently has over 40 members.
  • Committees include the Asset Building, New Americans, & Research and Data Collection,
  • Collaborative small dollar loan program.
  • Baltimore Homeownership Preservation Coalition
  • Foundations participation
loan program model
Loan Program Model

The program has three (3) components:

  • Loan: Applicant can borrow a min. of $300 up to $1,000, repaid over 12 months at 17.99% APR
  • Savings: Borrower must include in each payment a minimum of $5 savings to be deposited in a savings account.
  • Match: After the loan is fully paid off, the total savings amount is matched with AEI funds on a 1-to-1 basis.
  • Financial Education: Borrower is required to attend two financial literacy classes offered by NHS of Baltimore free of charge.
foundation support
Foundation Support
  • Loan loss reserve
  • Focus groups
  • Check cashing/payday lending survey
  • Marketing assistance
  • Grants for payroll
  • Grants for loan pool
nonprofit partner neighborhood housing services nhs of baltimore
Nonprofit Partner:Neighborhood Housing Services (NHS) of Baltimore
  • Existing Lending platform/underwriting/loan decision making
  • Chartered member of NeighborWorks America
  • Certified CDFI
  • Centrally located
  • Existing partnerships
  • Name recognition
  • History of community outreach
  • Providing Loan Loss Reserve
current financial partners
Current Financial Partners
  • Suntrust Bank
  • Provident Bank
  • BB&T
  • Municipal Employees Credit Union
  • M&T Bank
  • Hamilton Federal Bank
  • Bank of America
issue to be resolved
Issue to be Resolved
  • More Affordable Interest Rate
  • Maximum Saving Amount Qualified for Match
  • Loan repayment Schedule-monthly vs. biweekly
  • Limit on the number of loans a borrower can take
  • Bank Account Set up
  • Incentives for completing educational program
  • Collection and processing of cash payments