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As the network administrator of the Community Loan Center Affordable Small-Dollar Loan Program (CLC), TCC has fostered nearly 20,000 loans as alternatives for expensive payday and auto title loans through local lenders. The Community Loan Center has lent out over $15 million to Texans needing access to credit which has saved our borrowers more than $13 million compared to payday and auto title loan.
The Community Loan Center Small Dollar Loan Program is an employer-based small dollar loan program administered through local nonprofits in Texas. Each CLC location recruits employers at no cost to participate in the program and the CLC markets the loans to employees. Employees of participating employers may borrow up to $1,000 at 18% interest with up to 12 months to repay, as an alternative to payday loans. Employees apply for the loan online and when approved, the funds are wired into their bank account. The loan is repaid through convenient payroll deduction. The CLC was piloted in Brownsville and has shown that an employer-based consumer loan can be a successful program and a self-supporting social enterprise for nonprofits. In the first two years of operation, the CLC of the Rio Grande Valley made 2000 loans with a 5% loss rate.
Texas Community Capital