Capital Good Fund to Launch Micro-Branch in Woonsocket
GoLocalProv News Team
Capital Good Fund to Launch Micro-Branch in Woonsocket
"United Way and CGF began discussing this project last April. United Way and many other community based organizations were working at the legislature to lower the rate that payday lenders can charge from 260% APR to something more reasonable. One of the objections we heard was that there were no alternatives for people who needed short term loans," said Tony Maione, President and CEO of the United Way of Rhode Island.
Maione continued, "So we decided to work with CGF to bring their product to Woonsocket to see if people would use a better and cheaper alternative."
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The Capital Good Fund, "seeks to be the best financial empowerment organization in America by providing high-quality, innovative and transformational financial services to underserved families."
"One of the arguments against payday loan reform is that there are no alternatives, so creating this program in Woonsocket is designed to refute that notion," said Andy Posner with the Capital Good Fund. "United Way of RI generously agreed to fund this program with a $57,000 grant. In addition, Navigant Credit Union is providing us with a line of credit that we'll use to make loans for the program, and Amica Mutual Insurance is helping to guarantee the loan from Navigant."
The CGF loans can be between $300-500, and can be repaid over one year at a 36% APR. The loans come with financial literacy assistance in things like budgeting to help families stay on track and not need short term loans in the future.
The Woonsocket location of the lending micro-branch will be at 719 Front Street, Suite 109. Hours are Monday, Wednesday, Thursday & Friday, 9am-5pm; and Tuesday: 9am-12pm. Members of the community are encouraged to call in advance to make an appointment where possible.
Cllients seeking more information and to apply for loans may do so by calling Jane McIntyre, loan officer, toll free at 866-584-3651 ext. 300 or by email at: [email protected]. Information will also be available online at: www.capitalgoodfund.org/ourservices
Rhode Island, National Perspective
"Most importantly, we want the residents of Woonsocket to know that there is an affordable alternative to payday loans in the city," added Posner. "What's more, residents will have access to free financial coaching so that they can learn to avoid the need for the loans moving forward."
"There are many communities in Rhode Island that could benefit from a similar program", said Posner. "There are definitely interesting models being piloted around the country, although ours is unique."
New England States' Grades for Debt Protection
Overall Grades - RI
Overall Rating for the State of Strength Protections for Family Finances
Rhode Island: C
"Protections have many gaps and weaknesses"
Overall Grades - NE
Overall Rating for the State of Strength Protections for Family Finances
Massachusetts: B
New Hampshire: B
Connecticut: C
Maine: C
Vermont: C
Wage Protection - RI
State Protection of Wages
Rhode Island: F
"Protects only the federal minimum"
Wage Protection - NE
State Protection of Wages
Massachusetts: D
New Hampshire: D
Connecticut: D
Maine: D
Vermont: D
"Preserves more of a worker's wages than is required by federal law"
Car Protection - RI
Protection of the Family Car
Rhode Island: A
"Protects an average compact car from seizure"
Car Protection - NE
Protection of the Family Car
Massachusetts: A
"Protects an average compact car from seizure"
Vermont, New Hampshire: B
"Provides at least $9000 in combined exemption for car and household goods"
Maine C:
"Protects a car worth $5000 to $6999"
Connecticut: D
"Protects a car worth $1500 to $4999"
Home Protection - RI
Protection of the Family Home
Rhode Island: A
"Protects the family home regardless of value, or that protect a median priced home ($211,312)"
Home Protection - NE
Protection of the Family Home
Massachusetts: A
"Protects the family home regardless of value, or that protect a median priced home ($211,312)"
Vermont, New Hampshire: B
"Protects a home worth $100,000 to $211,311"
Maine, Connecticut: C
"Protects a home between $50,000 and $99,000 in value"
Household Goods -- RI
Protection of the Family Household Goods
Rhode Island: C
"Protects $7000 to $9,999 of household goods"
Household Goods -- NE
Protection of the Family Household Goods
Maine, Connecticut: A
"Protects all of a debtor's household goods"
Massachusetts, New Hampshire: B
"Protects at least $10,000 of household goods"
Vermont: C
"Protects $7,000 to $9,999 of household goods"
Bank Accounts - RI
Protection of Family Bank Accounts
Rhode Island: F
"States that offer no protection, or with protection for only specialized types of accounts, or that just provide a wildcard of $3,999 or less for bank account household goods, and car"
Bank Accounts - NE
Protection of Family Bank Accounts
Vermont, New Hampshire: B
"States that protect at least $700 in bank account, plus car and household goods worth at least $9,000, or that explicitly exempt deposited wages"
Connecticut: C
"States that protect at least $700 in bank account, plus car and household goods worth total of $7,000"
Maine: D
"States that protect car and household goods worth at least $4,000 to $6,999, plus at least $300 in bank account"
