Area Foundations, Banks

 Support New Family Loan Fund

DANBURY — Grants from the Fairfield County Foundation and the Inner City Foundation for Charity and Education, and a loan pool developed by Danbury area banks, will be used to launch an innovative loan fund for low-income people in the region, according to Brian Cronin, executive director of Catholic Charities of Fairfield County.

“We’re very grateful for the support of the foundations and area banks. By making it possible for us to create this innovative loan program, they are helping many low-income families take an important step in their lives,” said Cronin.

Mr Cronin said that $25,000 grants from the Fairfield County Foundation, the county’s community foundation, and the Inner City Foundation will be used to fund the loan program coordinator’s position. Four Danbury area banks have also committed to create a loan pool of $80,000 a year for three years.

Participating banks include Newtown Savings Bank, Union Savings Bank, Savings Bank of Danbury, and Ridgefield Bank.

John Martocci, president and CEO of Newtown Savings Bank, said all four of the Danbury area banks “are committed to their communities. We are excited about putting this program together and the help it will provide to low-income individuals and families in the greater Danbury area.”

The program, operated by Catholic Family Services of Danbury and overseen by the Connecticut Council of Family Service Agencies (CCFSA), will serve as a pilot program and a model for other communities throughout the state.

“The Family Loan Program will address a tremendous unmet need in the community to provide small loans to families who are struggling with transportation, child care, or other daily living expenses that threaten to disrupt their lives and their ability to support themselves and their children,” Mr Cronin said.

The Catholic Family Services loan program will provide small loans of up to $3,000 to low-income families. The eight-percent interest rate will be considerably lower than comparable consumer rates.

Mr Cronin said the loan program is designed to address some of these needs for working families that often don’t qualify for state subsidies or are unable to receive financial assistance from other lenders in a time frame that is fast enough to meet their immediate needs.

The fund is based on the successful McKnight Foundation Family Loan Program now at work successfully in 20 states across the United States. Evaluation data shows that three-fourths of the nationwide borrowers were better able to reach their educational and work goals and fewer than one percent required public assistance. Repayment rates have reached ninety percent in the national sites.

In order to qualify, applicants must be employed 20 hours a week for at least six months or be pursuing post-high school education, be a custodial parent of a minor child under 17 years old, and have sufficient disposable income to make repayments over a two-year period. The fund will serve people in the towns of Danbury, New Milford, Newtown, Bethel, Brookfield, New Fairfield, Redding, Ridgefield, and Southbury.

Its services are open to all regardless of religion, race, or income. For information regarding the Family Loan Program, call Carolyn Silliman, Program Operator, Catholic Family Services of Danbury, 203-743-4412, extension 242.