Hispanic Group Seeks Alternatives ToPayday Loans

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WASHINGTON, D.C. - (08/29/05) The Hispanic Alliance for Progress, anon-profit organization based here, said it received a grant fromthe U.S. Treasury Department's Community Development FinancialInstitution Fund (CDFI Fund) for the development of products thatwill give economically disadvantaged consumers an alternative topayday lenders. A spokesperson for the Hispanic Alliance forProgress said credit unions are not yet involved as the program isin its formative stages, but she expects CUs will play a role. TheAlliance submitted a thesis entitled “Bridge toBanking” to the CDFI Fund that proposed a range of products:from low-cost emergency loans to micro-enterprise loans. Inaddition, the group hopes to provide financial education services.The Alliance said the grant will allow “the deeper analysisof the proposed target market roll out, and full development of itsunderwriting, risk and portfolio management.”

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