First Applicants

For the past couple weeks, I have primarily been researching other microfinance institutions that operate in the US and going through all of their applications, in addition to researching the format and content of business loan applications and applications for area service providers such as the IFC and Vocational Rehabiliation, Inc. I then took all of those applications and synthesized the pieces that seemed most relevant to CEF and worked with CEF members and men from the shelter to create this final application, which will be the working application for the pilot summer program.

Download a copy of the application here:
http://www.box.net/shared/98gzbubrar

So, once we had a final draft of the application, the next step was to start getting it out into the community. I have since received 3 referrals from the Chapel Hill Case Manager and Street Outreach Worker for PATH, 1 additional applicant who was not specifically referred to the program that I work with on Talking Sidewalks, and then am expecting referrals from the IFC in the next couple weeks.

CEF volunteers and I will be holding our first two application sessions tomorrow, and I will post notes directly following those sessions. Exciting! Both applicants are really promising candidates, and I look forward to speaking with them more in depth about their plans tomorrow. Until then.

Using Local Microfinance to Assist Transitions from Homelessness

My summer research is titled "Using Local Microfinance to Assist Transitions from Homelessness." Over the summer, I will be working to organize the two first pilot groups of borrowers for a new student-run microfinance initiative called the Community Empowerment Fund (CEF). CEF aims to provide individuals who are homeless or at-risk of experiencing homelessness with access to small loans that enable these individuals to help themselves out of poverty. CEF loans are meant to directly further the acquisition or expansion of employment. This includes, but is not limited to, loans for the purchase of goods, trainings, start-up funds, equipment, tools, uniforms, and transportation costs. Loans are given on the basis of the application process, which includes the following written application and a personal interview. Upon approval, a flexible repayment schedule will be worked out according to the client’s financial situation.

The first two groups of borrowers this summer will consist of 5 women and 5 men, respectively. The program will work mainly through referrals, but will accept and review all applications.

My summer research will ask the question: How can the Community Empowerment Fund be structured to best meet the specific needs of the homeless population in the Chapel Hill-Carrboro area through microfinance? I will evaluate the program’s efficacy and its ability to empower individuals towards obtaining more stable housing and employment, and will work with borrowers to adapt the structure of CEF.