Last evening I was lucky enough to be in attendance at the Social Enterprise Greenhouse(10 Davol Sq Providence, RI) for Andy Posner’s presentation of a new public offering of financial loan dollars for families in need.  Mr. Posner is founder and CEO of Capital Good Fund (Innovative Microfinance), a 501(c)3 Community Development Financial Institution.  They have been working quietly in Providence since 2009 giving out small emergency loans that are designed to replace “payday” loans and “cash advance” loans from corporations who typically charge outrageous interest rates.  Yesterday was the first public announcement of their offering $4.25 million in small loans to the public in general and also an investment opportunity for those who are financially well-off.

Emergency loans run from $300-$500 with a 12-month term and a fixed rate of 36% APR which may sound high, but go ahead and check out the average interest paid on a “payday” loan.  These loans do not require collateral have no fees and are credit-building.

Consumer loans have a range of $700-$2000 with a 24-month term and fixed-rate of 24% APR.  This loan is designed to help a family repair their car or put down a security deposit on an apartment, etc.  No minimum credit score is required.  In fact, the requirements are downright reasonable.  One needs to provide simple documents such as proof of rent or mortgage, a working phone number, a copy of your state ID and Social Security card, proof of mailing address.  Public benefits such as Social Security can count as proof of income.  Two months of bank statements are required, but if you only use prepaid cards well that counts too!

Larger Car loans are also offered at fixed interest rates of 9%-15% for only cars that are 2012 or newer and have less than 60,000 miles and all come with 12 month warranties.  All of these loans come with free financial coaching sessions that also include health coaching.  Investment opportunities for those looking for a place to put that extra thousand dollars sitting under the mattress are open to accredited and non-accredited investors.

Andy Posner has a reputation in Rhode Island for putting in hours of his free time testifying at the State House and offering his sweat for causes that help those less fortunate than he is.  As a Brown University graduate with lofty ideas for changing the world, he is one among many, but his ideas now have financial backing and an active reality.  Andy is not your typical douche bag financier.  This concept of an alternative to the $100 billion predatory lending industry could spread out across the country.  I am hoping.       866-584-3651 x302




2 thoughts on “Capital Good Fund

  1. This idea, and others, are good in that they have the people’s interests at heart. Worker owned Cooperatives are another example, as is job sharing, even credit unions. All these endeavors seek to empower the people to take more control over their lives. What has to be realized is, this is all happening under capitalism. So, that means all the rules of capitalism still apply.

    Take cooperatives, for example. There are a significant number of worker owned businesses operating in the U.S., some for a very long time. An inherent problem is both competition from ‘regular’ businesses doing the same thing, or worse, other cooperatives doing the same thing nearby. Cooperation and competition are contradictory. Under capitalism, competition is the name of the game if you want to survive. And competition leads to speed up, lay offs, pay cuts, etc., all the things that oppress us now.

    But, I see a bright side to all this. The more the people are organized in their own interests in cooperative ownership, loan programs such as the one mentioned in the blog, and other like endeavors, the better for the progress of humanity. I look at these things, on the one handed as limited by the confines of capitalism, on the other hand, social practice that can make the transition to socialism smooth once the capitalists are brought down. It practice for the future.

    We need these and more creative ideas to organize society–our lives–to benefit the masses of hard working people fighting to survive. Anything that gives us more control over our lives, and at the same time serves to lead us in a direction of more independence and freedom and liberation, is worthy of us trying, and worthy of us supporting.

    Kudos to all the good people creating these new ways of helping the people make a better life.

    Power To The People!!!!!

    1. Thank you for a very informative and eloquent response. I think that giving others a hand in surviving this dog-eat-dog system is all we know how to do right now. Aggressive pursuit of new ideas and vigilant cooperation

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