'Lending circles' help low-income communities join the financial mainstream

Program helps low-income people build credit, reduce debt, SF State study shows

SAN FRANCISCO, June 4, 2013 -- An innovative financial lending program is helping low-income individuals build credit, reduce debt and find their financial footing, according to a pair of studies released today from San Francisco State University's César E. Chávez Institute (CCI).

Lending Circles, a program managed by the nonprofit Mission Asset Fund, dramatically improved credit scores for low-income residents of San Francisco, the studies found. In addition, the reports suggest the program can be successfully replicated in other communities and could serve as a nationwide model for helping vulnerable populations, particularly immigrants, achieve economic stability. Many of these communities were among the hardest hit by the recent recession.