Delawareans affected by COVID-19 are eligible for crisis relief loans of $300 to $1,500 thanks to a new initiative through Capital Good Fund.
Capital Good Fund founder and CEO Andy Posner said the organization has provided emergency loans since 2012, but the pandemic has caused officials to create a program specifically tailored to deal with the crisis. Capital Good Fund is a nonprofit, certified financial institution that offers small loans and financial counseling to families in Rhode Island, Florida, Massachusetts, Illinois and Delaware.
Thanks to a $100,000 grant from Discover Bank and support from the Longwood Foundation, Posner said, the Crisis Relief Loan is now available in Delaware.
Loan amounts ranging from $300 to $1,500 will be available for a term of 15 months with no payments due the first three months, Posner said. The interest rate was lowered to 5 percent to cover costs, Posner said, and applicants do not pay an application fee, closing fee or prepayment penalty.
Applicants will be reviewed based on their personal finances as of January and February, with the assumption their financial situations will return to normal after the crisis has passed, Posner said. Loan repayments will be reported to credit bureaus to allow borrowers to build their credit, he added.
“There are no minimum or maximum income requirements, and we encourage people to take advantage of this loan regardless of their income,” Posner said.
Discover Bank President James Roszkowski said the grant will help dozens of Delawareans bridge the gap between their pre- and post-crisis income.
“That need will continue even with federal relief funds on the way,” Roszkowski said. “We are thankful that our longtime partner, Capital Good Fund, has been able to so quickly pivot in response to this crisis and offer an innovative product that can meet an urgent need in the Delaware community.”
As borrowers repay their loans, Posner said, the principal and earned interest will revolve back into the loan fund.
“That will enable Capital Good Fund to continue funding loans to more Delaware families in crisis,” Posner said. “We don’t know how long the impacts of this virus will affect the communities we serve.”
Capital Good Fund’s offices are closed, and staff is working remotely, Poser said. Current borrowers who are affected by COVID-19 can call 866-584-3651 Ext. 303, email email@example.com, or chat via the website.
Apply at www.capitalgoodfund.org/COVID. Posner said a two-business-day turnaround from application to decision is guaranteed. Spokesperson Deborah Halperin Colbert said more than a dozen applications have been received so far, and and at least three loans have already closed.
Officials say Capital Good Fund is also seeking donations to help fund more loans and respond to a surge in demand. Those interested in donating can do so at capitalgoodfund.org/donate.