The Hispanic Alliance for Progress, a non-profit organization based here, said this week it received a grant from the U.S. Treasury Department's Community Development Financial Institution Fund (CDFI Fund) for the development of products that will give economically disadvantaged consumers an alternative to payday lenders.
A spokeswoman for the Hispanic Alliance for Progress said CU are not yet involved, but she expects CUs will play a role.
The alliance submitted a thesis entitled "Bridge to Banking" to the CDFI Fund that proposed a range of products: from low-cost emergency loans to micro-enterprise loans. In addition, the group hopes to provide financial education services.
The alliance said the grant will allow "the deeper analysis of the proposed target market roll out, and full development of its underwriting, risk and portfolio management."
