Toledo LISC aids in launch of Employer Sponsored Small Dollar Loans

Jul 31, 14 Toledo LISC aids in launch of Employer Sponsored Small Dollar Loans

The predatory lending cycle will soon end for some working Toledoans thanks to a local effort underway.   Toledo LISC, Lucas County Family and Children First Council, and United Way of Greater Toledo have partnered with Filene Research Institute to establish the Employer Sponsored Small Dollar Loan (ESSDL) program in Toledo. The goal of the ESSDL program is to help increase access to credit (typically $300-$1,500) for low to moderate income working people through small dollar loans offered through their workplace.

Employees who have to access payday lenders will benefit tremendously from these employer sponsored small loans by avoiding payday lenders and the debt trap they cause. Likewise, participating employers will also benefit from the program. Research shows that financial stress lowers workplace performance. When employees are helped financially, then workplace performance increases. Several local credit unions including Toledo Urban Federal Credit Union, Sun Federal Credit Union, Toledo Metro Federal Credit Union and Promedica Federal Credit Union have signed on to service these small loans in partnership with local employers.   To date, participating employers include Promedica, Neighborhood Health Association, United Way of Greater Toledo, and Lucas County.

Filene Research Institute is still enrolling local employers willing to make a positive impact in the community. Local employers who would like more information should contact Cynthia Campbell, Director of Innovation Labs at Filene Research Institute, at cynthia@filene.org.

Click here to watch a video of our program staff discussing the ESSDL launch in Toledo.

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