Nonprofit Lender, Capital Good Fund, Moves Into Illinois

It is a new alternative to predatory lenders for low income residents

Mike Krauser
January 17, 2020 - 1:54 pm
Andy Posner, Founder and CEO of Capital Good Fund

The Resurrection Project

Categories: 

CHICAGO (WBBM NEWSRADIO) -- Statistics show that the average family making $25,000 a year will spend nearly as much on financial services and fees, as they do on food. That’s $2,500 not going to food on the table, rent, or spending in the local economy. 

Now there is a new resource moving into Illinois to help those that fall below the poverty level build their credit and avoid high interest loans that can cripple their finances.

Capital Good Fund, a Rhode Island-based nonprofit social change organization that uses financial services to tackle poverty in America, was introduced Friday in Illinois. They been operating in Rhode Island, Delaware, Florida, and Massachusetts for nearly a dozen years, and is now lending to low-income borrowers in Illinois, who may not qualify for loans elsewhere and often turn to what some call predatory lenders.

“There are 525 payday loan branches in Illinois doing $5.4 billion in volume," said Andy Posner, Founder and CEO of Capital Good Fund. "And if you look at a typical loan in Illinois, on a $400 loan you’re going to pay $600 or more in interest and fees, compared to $22 with us.”

Andy Posner, Founder and CEO of Capital Good Fund
The Resurrection Project

Capital Good Fund offers personal loans ranging in size from $300-$20,000, with an average interest rate of just 14 percent. They have a 96-percent repayment rate. 

"By saving borrowers an average of $700 in interest fees and building their credit by over 75 points, Capital Good fund can change the lives of individuals, families, and their communities," the company said in a statement. "In their first year in Illinois, they will give hundreds of low-income Illinoisans a long-overdue alternative to the 522 payday lenders in the state, who charge an average interest rate of nearly 300 percent."

Capital Good Fund will offer loans to low-income families for a variety of key needs, including vehicle purchase, repair, or refinance; security deposits; immigration costs (citizenship applications, green card renewal, etc.); and emergencies. It’s all done online, at captialgoodfund.org. 

Capital Good Fund’s expansion into Illinois was made possible through a $1.25 million mission-related investment from The Julian Grace Foundation and a $700,000 commitment from JPMorgan Chase.