F. A. Q.

How Does an Impact Loan Work? 

FAQs

What is THE COMMUNITY IMPACT FUND?

The Community Impact Fund is a 501C3 non profit organization established to create prospering “communities” worldwide. The key to prospering communities worldwide is financial well-being for all.

What is an IMPACT LOAN?

CIF partners with a wide variety of organizations from churches, nonprofits, credit unions and for profit companies to establish Impact Loan funds from which qualified employees and community partner employees can request an Impact Loan in an anonymous and dignified manner.

Through each organization’s individualized fund, CIF serves as the loan administrator and offers a 0% interest-free loan with an extended payback schedule to meet individual needs. To qualify for a loan, an individual (borrower) applies through their organization’s customized loan platform for consideration. 

CIF conducts diligence to ensure the borrower qualifies for assistance under IRS regulations and CIF policies and procedures. Once approved for their Impact Loan, a distribution of the approved amount will be made directly to the individual’s (borrower’s) bank account.

What is the AMOUNT OF THE LOAN?

The amount designated for each Impact Loan is based on each borrower’s need and parameters set around each partner organization’s unique fund. Approval is based on meeting several criteria including borrowers current financial status. Impact Loans are focused on serving individuals who fall within the A.L.I.C.E. demographic.  Please visit your company’s loan microsite to determine the total loan amount available for you to request.

What are the TERMS OF THE LOAN?

A repayment schedule will be set up automatically for the full loan amount amortized over 12 months. This timeframe can vary depending on each individual fund’s parameters so please refer to your organization’s individual loan website for information. Borrowers can select the date on which their automatic repayment will be deducted each month. 

 

What are the terms of the FLEXIBLE REPAYMENT SCHEDULE?

Each loan has a repayment schedule that spans 12 months. The first loan payment isn’t required until up to 45 days following the receipt of the loan. Borrowers are also able to select the date on which their payment is automatically withdrawn from their account. As challenges arise, CIF will work with borrowers to find the best solution to move forward. The borrower can log into their application account and submit the Flexible Payment Request online.

What is the SAVINGS INCENTIVE?

Part of financial well-being is having the security of an emergency fund. Part of the Impact Loan model is to provide an opportunity to invest in the practice of maintaining an emergency savings fund. CIF partners believe in this so much, that they want to provide an added bonus for you once you pay your Impact Loan back in full. This step was designed to speed up your progress towards building an emergency fund on your own. Once you pay your Impact Loan in full then you can start working towards your Savings Incentive. Information about earning your Savings Incentive can be found on your organization’s loan website.

Who QUALIFIES for the impact loan?

CIF partners with organizations and employers to establish their Impact Funds. CIF does not currently loan outside of these non-partner organizations. Loan applicants must meet the eligibility requirements established by their participating employer to apply for an Impact Loan. Additionally, applicants must meet additional requirements such as debt to income ratio. That being said, the goal is to approve as many loans as possible and the requirements are much more flexible and forgiving than a traditional loan process.

How are APPROVAL decisions made?

Approval decisions are made based upon the information provided by the applicant.  Applicants are required to provide a completed application, and must meet the criteria reviewed in the pre-check section of the application.

How are LOANS DISBURSED?

Loans will be distributed by CIF to the approved recipient directly to the applicants bank account.  Payments will be sent within 1-3 business hours of the loan being approved. The timing of disbursements are influenced by banking hours, weekends, and holidays.

How are the FUNDS GOVERNED?

Your organization’s personal Fund is governed by The Community Impact Fund. CIF is a nonprofit 501(c)(3) organization that is responsible for responding to all inquiries, vetting all applications, and distributing funds to approved applicants.

Will my loan payment be deemed as TAXABLE income?

Any loans received by borrowers will not be deemed as taxable income.

Will this loan show up on my CREDIT REPORT?

No, at this time Impact Loans are not reported to the Credit Bureaus.

Who do I CONTACT if I have any questions about this program?

Please reach out to CIF at loans@communityimpactfund.org.