This week OBDC Small Business Finance was selected as part of Better Bay Area, a program supported by Mission Asset Fund, Google, Silicon Valley Community Foundation, and Y&H Soda Family Foundation to bring the power of lending circles to a larger network of communities across the Bay Area. OBDC is planning to use lending circles to support borrowers in building credit, receiving financial education, and in growing their networks to help their businesses thrive.
People around the world lend and borrow to each other when bank loans are not an option. With technology and credit reporting, Mission Asset Fund’s Lending Circles transform this traditional practice to help borrowers access affordable loans, build credit history, and set themselves up for a financially stable future. OBDC believes that for some people interested in our loans, participating in a lending circle can be an additional tool in developing a stronger credit history.
In the Bay Area, there are over 203,000 low-income families. An estimated 9.5% of these families’ take-home pay goes to high-interest payments and fees owed to predatory lenders. Mission Asset Fund developed their Lending Circles programs to help solve this problem. These programs are being made available to other organizations now thanks to the broader community support and additional funding.
We are thrilled to be one of ten innovative programs chosen to partner with Mission Asset Fund. You can learn more about the other awardees by searching #LendingCircles on Twitter and by following @MAFpajarito.
