Capital Good Fund to expand services with $466K Treasury grant

PROVIDENCE – The Capital Good Fund has received its largest influx of funding ever with a $466,000 grant from the U.S. Treasury, which will help the nonprofit lender expand its lending and financial coaching.

The funding is part of $166 million made available to 224 groups this year through the Treasury’s Community Development Financial Institutions Fund. The fund is designed to support some of the nation’s most distressed communities. The West Elmwood Housing Development Corp. in Providence also received an award of $124,000.

Stay Ahead of Winter Respiratory Illnesses: Expert Advice from South County Health Express Care Providers

As winter progresses, so does the season of respiratory illnesses. Colds, the flu, RSV, and…

Learn More

Andy Posner, founder and CEO of the Good Fund based in Providence, said the funding would help grow the nonprofit’s loan and financial coaching programs in Rhode Island and other states where it operates.

“This is a great opportunity for us to build on our recent success, which included phenomenal loan performance, demonstrated social impact, and an expansion into Florida and Delaware,” he said.

- Advertisement -

The alternative lending institution offers products and financial coaching to low-income families, including car loans, personal loans and immigration-related loans. The products and services are promoted as alternatives to payday lending, which is often criticized as predatory. In Rhode Island, interest rates can exceed 260 percent, marking the highest in Rhode Island.

A portion of the Treasury funding will go specifically toward helping residents of Florida counties where 20 percent or more of the population has lived in poverty for the last three decades.

The lending institution has a repayment record of greater than 90 percent, which Posner attributes to realistic underwriting requirements pared with ongoing support and personalized financial coaching.

The funding drew praise from both congressional and state leaders, including Gov. Gina M. Raimondo, who lauded the Good Fund in a statement.

“I’m glad that the U.S. Treasury recognizes the importance of their mission and the good work they’re doing to help break the cycle of poverty,” Raimondo said.

Likewise, U.S. Sen. Jack F. Reed, D-R.I., commended the Good Fund, saying he expects the funding to help lift more Rhode Islanders out of poverty.

“Good Fund aims to not only provide an alternative to predatory payday loans, but also strives to promote financial literacy,” Reed said.

The funding will also help cover future loan department personnel in Florida and Delaware, along with expanding product offerings, as the nonprofit will try out a new alternative to auto title loans, an effort still under development.

“Our goals moving forward are to develop new loan products, improving on existing offerings and reach thousands more families in need,” Posner said.

Eli Sherman is a PBN staff writer. Email him at Sherman@PBN.com, or follow him on Twitter @Eli_Sherman.