Providing financing not associated with property reform is not Equity Trust’s customary role. However, when we learned of an immigrant family in our Western Massachusetts community whose startup business had been upended by the pandemic, putting them on a credit card treadmill that looked endless even though they were making steady payments, we wanted to help.
While many of us take access to money for granted, others don’t have that privilege. The interest and fees charged by banks and credit card companies can consume so much of any payments that catching up feels like an impossible dream – and that’s if you are even able to get a loan or a credit card. BIPOC, immigrant, and refugee families are often the most disadvantaged in this regard. The sharing of community wealth is an important way to counter this reality.
Having recently partnered with Valley Community Land Trust to organize a community-funded mortgage for a low-income immigrant family, we knew there were people in the area willing to pitch in. So we teamed up with local alternative economy nonprofit Common Good to refinance the debt with a zero-interest loan. Common Good and Equity Trust share a belief that our entire community is harmed when local businesses are put at risk by extractive lending, but also that we have the capacity to create a better system. So we have invited our networks to participate with a donation or co-loan. The response from our community has been very positive and this small business is now back on its feet.
*****
Update May 2024: Nine months after launching this effort, the combination of the borrowers’ payments and community donations has reduced the loan principal by 30%, and community-source loans now represent 40% of the remaining balance. The opportunity remains open to help retire this debt, so please consider joining in.