New Alternative to Payday Loans--Employer Sponsored Small Dollar Loan Program

A real problem for many people in a small financial jam--say, that need a new appliance or a car problem--is payday loans, which can put someone living on the financial edge right over, piling up fees and putting them in a cycle of debt.  Some people have an alternative, if you live in Toledo, New York City, Buffalo, NY, Denver, Houston, Kansas City or Burlington, VT.

A program called the Employer Sponsored Small Dollar Loan Program has started up in 14 credit unions across the United States, and the local employers who work with them.  It works like this: if you work for one of the cooperating employers, you can apply for a small loan of $300-$1500 at one of the credit unions.  The credit unions verify that you work there, you get the loan, and then your employers deduct the money from your pay in the future till it's paid off.  No giant fees, no cycle of debt.

If you live in one of these cities, and your employer is part of the program, you may be able to get help for small loans.  Hopefully, more programs like this can help take a cut out of payday loans.

One-Stop Shop for Federal Loan Programs

Yes, we know that government loans don't give our regular readers the tingle up their leg that GRANTS do, but don't sell them short.  The governent may give you loans at a favorable rate, or guarantee a loan and make private lenders more willing to lend money.  And for students and former students, there's always the possibility of loan foregivenss.  So where do you find out about these things?

The feds have created a one-stop stop page that can lead you to federal loan programs for homeowners and buyers, farmers, business people, students, veterans, and disaster victims.  This is strictly federal,, and gives no information about, for instance, loan programs by states or localities.  But it has some interesting stuff.  For one thing, it has not only student loan programs, but loan forgiveness programs, like a student loan repayment programs for people doing research in AIDS for at least two years, or loan consolidation programs, and more.

They also have info on local funders who receive federal funds to provide business microloans (intermediaries).  And sometimes...they even have a grant in there, if the program is basically a loan. For instance, there's a loan from the Ag Department for low-income rural dwellers to fix up their house.  But for homeowners who are low-income and 62 or over, it becames a grant. 

And don't miss the "other resources" page. It's got tips on improving your credit, so that you  can get loans,  what information businesses should put in a loan application, how to find out if your business fits the definition of "small".  And tons more.