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02/21/2023 08:06 AMPress Release from the Branford Microfund
Last year, thanks to the support and concern of the community, the Branford Microfund (BMF) was able to increase the number of interest-free micro loans it made to individuals and families facing unexpected financial emergencies.
Most BMF loan recipients live paycheck to paycheck or on fixed incomes and lack the financial resources to cover emergencies. They seek loans for a variety of urgent financial needs ranging from replacing a broken water heater or providing a security deposit on a place to live, to making a down payment on a used car in order to get to work.
Last year, the BMF’s five-member volunteer loan committee processed 61 applications for loan requests that totaled more than $150,000. They worked hard to respond quickly, and to help applicants determine their eligibility and ability to repay their loan. As a result, BMF was able to provide qualified applicants with interest-free loans ranging from $399 to $3,000, totaling $43,000 through 2022.
Although borrowers can take up to 30 months to pay, the average repayment schedule has been about 26 months. Beyond a simple loan, the BMF try to help improve the overall financial condition of its applicants. As the loan committee works with applicants to review the financial information on their application, they offer suggestions and tips that empower applicants to stabilize their finances.
Examples include encouraging applicants to consolidate their debt, reduce household expenses by comparison shopping for everything from phone services to car insurance, and considering new ways to cut family expenses. They often refer clients to other community partners who can provide additional basic needs assistance.
The BMF expects to receive many more applications this year as inflation continues to make it difficult for low-income people in Branford to pay for basic needs, and nearly impossible for them to set aside savings for emergencies. BMF is preparing to meet these needs and hopes you will continue to support its efforts.
The Branford Microfund is a local non-profit organization run by Branford volunteers and community leaders to help its neighbors during difficult times. They provide interest-free loans of up to $3,000 to Branford residents to help lighten immediate financial burdens. Repayment is expected over a maximum of 30 months. For more information about BMF, to make a donation, or to apply for assistance, please visit www.branfordmicrofund.org.