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Abstract

Creative approaches are needed to help asset-deprived, working poor families. The author evaluates the effectiveness of one such program, the Duluth (MN) Lutheran Social Service Loan Fund Program, which provides low-interest loans to low-income families to help them confront transitional financial crises that prevent them from either continuing their education or maintaining their job. As a result of a partnership between a local human service agency and a community bank, loan recipients are able to build their credit ratings with the bank through timely repayment of their loans. This study shows that the loan fund increased recipients' long-range financial stability and that recipients were highly satisfied with the program.

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Helping Working Poor Families with Low-Interest Loans

Abstract

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