San Francisco Wants To Expand Peer Lending Program
SAN FRANCISCO (KCBS) - The zero-interest, no-fee loan that helped Bruno Rivas open a San Francisco Mission District printing shop is common in many parts of the world, but not the United States.
"We do also business cards, flyers," Rivas said.
And he helps finance the entrepreneurial ambitions of nine others who have sustained through a person-to-person lending circle administered by the Mission Asset Fund.
KCBS' Chris Filippi Reports:
Since 2007, more than $551,000 has changed hands among more than 300 participants in a program seen by many as a bridge between the formal economy and the informal economy that sometimes flourishes in immigrant communities.
"Their on-time payments get recorded just like any of the rest of our's, and that helps them build a positive credit history and a positive and hopefully good credit score," said San Francisco Treasurer Jose Cisneros said.
With the backing of private donors, 10 people form a circle and agree to lend money back and forth to each other. Most of the loans are small, totaling just a few hundred dollars.
"For somebody just starting out, even a small amount can make a big difference," Cisneros said.
He hopes to establish peer lending programs with community groups in other parts of San Francisco and eventually expand the program to the rest of the Bay Area.
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