Capital Good Fund has launched a crisis relief loan product to assist families affected by the COVID-19 pandemic, the fund announced April 6.
“We understand that families are experiencing unprecedented uncertainty and hardship in this difficult moment, and we are committed to playing our part,” says Capital Good Fund Founder and CEO Andy Posner. “Now more than ever, families need access to safe loan products with which to address a sudden shock to their income. In addition to offering our existing 2,000 clients the option to defer payments, we have created a brand-new product which is specifically tailored to deal with this crisis.”
Capital Good Fund is a nonprofit, U.S. Treasury-certified Community Development Financial Institution that provides equitable loans for various key needs, including emergencies; vehicle purchase, repair or refinance; security deposits; and immigration expenses.
Due to a $100,000 grant from Discover Bank and prior support from the Longwood Foundation for Capital Good Fund’s Delaware Operation, the loan is now available in Delaware in loan amounts of $300 to $1,500 with an interest rate of 5% APR. The loan has a term of 15 months; no payments are due for the first three months, with the option to extend if the crisis continues beyond then.
There is no application fee, closing fee or prepayment penalty and no collateral. The fund offers expedited loan decisions, underwriting based on pre-crisis income and loan payments are reported to the credit bureaus.
Applicants can apply at capitalgoodfund.org/COVID. A two-business-day turnaround from application to decision is guaranteed.
“We are thankful that our longtime partner, Capital Good Fund, who has been able to so quickly pivot in response to this crisis and offer an innovative product that can meet an urgent need in the Delaware community,” said James Roszkowski, Discover Bank president. “With our grant funds, the organization will be able help dozens of Delawareans bridge the gap between their pre- and post-crisis income, a need that will continue even with federal relief funds on the way.”
As borrowers repay their loans, the principal and earned interest revolve back into the loan fund. That will enable Capital Good Fund to continue funding loans to more Delaware families in crisis
“We don’t know how long the impacts of this virus will affect the communities we serve,” said Posner. “Discover Bank’s investment will have a catalytic impact on our ability to help low-income Delaware families struggling with economic uncertainty.”
Although Capital Good Fund’s offices are closed, staff is working remotely. They are encouraging current borrowers who may be affected by this crisis to contact the organization by phone at 866-584-3651, ext. 303, email email@example.com or chat with them on their website. Those interested in donation should visit capitalgoodfund.org/donate.