Finance/Micro-Loan Programs

[Bill MeathParticipant]

We are trying to work with a bank here in Illinois to develop a micro loan program. They are requiring a Security Agreement to collateralize a dedicated savings account. The agreement they are asking us to sign is chuck full of legal speak that is giving me a headache.I am wondering, did any other SVDP Micro programs out there have had to do this? If so, could I get a copy of the agreement you executed? How did you guarantee the collateralized account?
Thank you in advance for your responses.
God bless,
Bill Meath

[Judith ColemanParticipant]

We have been able to sign a basic (2 page) collateral agreement, similar to a generic co-sign agreement, for each loan granted, individually. By doing this, rather than using the entire account for collateral, we would/could be able to withdraw any excess funds if available if we wanted to. We are working with a credit union rather than a bank. They seem to be more helping people oriented than our local banks.

Good luck to you. It’s a great program. We are a small conference but have been able to back $53,000 in loans for a total commitment of $26,000 over the course of abut 4 years.

Judy Coleman
Society of St Vincent dePaul
Corpus Christi Conference
East Sandwich MA

[Deb ZabloudilParticipant]

Bill, I have a microloan agreement that we use with our credit unions. As Judy said, credit unions are usually a little more willing to work with us than a bank would be since we want to award small loans. I can share that with you. Just email me at debzabloudil@gmail.com and I’ll send you a copy.

Deb Zabloudil
Columbus Ohio SVdP Council

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