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Small Loans, Big Returns
Ways to Work (WtW) is a nonprofit, community development financial institution that helps lower-income people. WtW is designed to help borrowers attain financial independence and advance economically by having money to purchase dependable used cars to get to work or school. Since 1996, WtW has originated nearly 12,000 loans for more than $31 million and the average auto loan amounts to an average $3,400. Results of a 2006 WtW evaluation indicate that borrowers reported an average increase of 41 percent in their take-home pay. In addition, 67 percent of WtW borrowers report that they have used conventional financial services subsequent to receiving their WtW loans.

Headquartered in Milwaukee, WtW makes its loans from 43 offices in 21 states: California, Delaware, Florida, Hawaii, Illinois, Indiana, Louisiana, Maryland, Michigan, Minnesota, Missouri, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Dakota, Texas, Virginia, Washington, and Wisconsin.

WtW offices are located in social service agencies affiliated with the Alliance of Children and Families (ACF). ACF agencies screen and provide financial education to borrowers and service the loans. WtW local offices provide financial education to more than three persons for every individual who receives a loan. Investors in WtW include several national foundations, the Community Development Financial Institution Fund of the U.S. Treasury Department, local United Way offices, and financial institutions. Banks can be involved by investing in the national WtW loan fund, by referring to local WtW offices prospective borrowers who do not meet conventional credit criteria, by participating in local WtW loan committees, and by providing grants and in-kind donations to WtW.

Hawaii Community Reinvestment Corporation
The Hawaii Community Reinvestment Corporation (HCRC) is a nonprofit community-based financial services corporation that provides equity and financing for affordable housing developments throughout the state of Hawaii. The corporation was chartered in 1991 to provide technical and financial assistance for the creation and preservation of affordable housing in Hawaii. Since its inception, it has made more than $147 million available for rental projects generating more than 2,600 affordable units. The projects have been completed through a combination of partnerships of financial institutions, private investors, and government agencies. HCRC offers permanent loans and tax credit equity funds. It also provides equity financing through the Hawaii Equity Loan Program (HELP). Six banks participate in the tax credit equity fund and nine have partnered to lend to the organization supporting the funding of more than 50 projects on five of Hawaii's islands. Project loans are long term and may be in amounts of up to $10 million.

For additional information regarding HCRC, contact Donald L. Tarleton, President, at 808-532-3115 or tarleton@lava.net.
[Published in News from the Districts, Community Developments, Winter 2006-2007]

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