Implement No-Fee Cashless Payment System

Project Description

Solidarity Microfinance is a Des Moines-based program of Iowa Community Capital (ICC). ICC is a 501(c)(3) charitable nonprofit with a mission to identify gaps in access to capital in Iowa and to provide small loans and microfinance services to underserved low-income populations, including women and minority entrepreneurs, persons with disabilities, and persons in need of credit repair. ICC is a specialized Community Development Financial Institution that currently serves over 500 clients. ICC clients are unable to access capital from conventional sources and desire to earn extra income to support their families and improve their quality of life.
Solidarity Microfinance staff use Grameen peer-group lending methods to provide small loans of $1,000 to $12,500 to low-income entrepreneurs, as well as, savings services, credit reporting, and financial literacy training. Solidarity clients meet every two weeks to make loan payments and discuss ways to improve their business enterprises. Client’s typically sell health and beauty products, food catering, cleaning and rentals, clothes and cloth, jewelry and toys, specialty products and many others. Since 2015, Solidarity clients have achieved a 99%+ loan repayment rate. Solidarity is open to all low-income persons with a business idea. Currently 43% are Latinx, 57% are Black, 86% female and 14% male. All Solidarity clients are below 80% of the area household median income when joining the program. For community impact, each $1 contribution for Solidarity operational support generates $10 in average annual income since joining the Solidarity program.
Since 2014, Solidarity clients have paid their loans with cash payments. In recent years, many clients have acquired smart phones and are now asking for the option to make mobile/online payments. Solidarity has conducted a successful pilot program and would like to implement the cashless payment option for all low-income Solidarity clients, without tacking on an additional service fee.
Solidarity Ask: Additional support of $10,000 is needed to implement the cashless payment system to benefit all of ICC’s low-income Solidarity entrepreneurs.