The Solution

Impact Loans

0% Interest Charitable Loans that Create Financial Well-being for All

What Is An Impact Loan?

It’s a 0% interest-free charitable loan. With an Impact Loan, repayment takes place over a 12 month schedule and is set up to be automatically debited from the recipient’s bank account on the day of their choosing. This loan helps to bridge cash flow and pay emergency expenses without accruing extra fees or increasing high-interest debt.

This gives us an opportunity to meet the very real needs in our communities while also restoring dignity back to those receiving the funds. This is the key to prospering communities worldwide.

This fully automated, tech-enabled process was built around respecting the dignity of the applicant. The loan process itself is managed by our partner, the Community Impact Fund, allowing for the process to be completely anonymous from application to pay off. Funded entirely by your donations, this is a way for our organization to show support and give a hand up to those employees who need it most.

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Impact Loans

How It Works

Impact Loans are a way to help participants achieve financial well-being by giving them access to an interest-free loan that has a flexible payback period and also helps them save for emergencies.   

Step #1 – Apply

The first step to receiving an Impact Loan is to apply online. It is a fast process that is anonymous so that the applicant doesn’t have to worry about sharing their situation with anyone beyond The Community Impact Fund which administers the loans on behalf of its partners. No one other than CIF benevolence administrators will ever see the application or related documentation. Once approved for an Impact Loan, the funds will be disbursed directly into the applicant’s account via ACH.

Step #2 – Cover Your Expenses

The second step is to use the proceeds of the Impact Loan to cover any emergency expenses that would otherwise set a participant back further financially, as described in their loan application. Examples of eligible expenses include:

  • Housing expenses (rent, mortgage, utilities) 
  • Healthcare
  • Childcare
  • Transportation
  • Food
  • Technology
  • Taxes
  • Debt
  • Other (funeral expenses)

Step #3 – Build Savings

Part of financial well-being is having the security of an emergency fund. CIF believes in this so much that they encourage partners to provide an added bonus for participants once they pay their Impact Loan back in full. This step was designed to speed up their progress towards building an emergency fund on their own. Once they pay the Impact Loan in full, then they can start working towards the Savings Incentive.