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Hunkpati Investments' First Credit Builder Loan
By Kim Pate on 07/11/2011 @ 11:00 AM
Here's another interesting read that I came across the other day about Hunkpati Investments and their new Credit Builder Loan program. If you're interested in native entrepreneurship and you don't already subscribe to Our Native Circle, I recommend you do so. Their website is full of great resources and news about native organizations everywhere.
Today marked the first loan given as part of Hunkpati Investment’s newest program, the Credit Builder program. Poor credit history currently impedes the financial security of many community members on the Crow Creek Reservation. The Credit Builder program makes small loans of up to $2,500 to help community members pay off bad debt and provides financial education for community members about the importance credit and household budgeting. Graduation from Credit When Credit is Due, a well-respected class explaining credit, is a prerequisite to qualify for the loan. The class is offered in partnership with Lutheran Social Services Consumer Credit Counseling and was first offered for the first time on Crow Creek on June 4th . This class had sixteen graduates of all ages who gave up a full Saturday to learn more about the inner dynamics of the credit system.
“This class is about learning how not to be taken advantage of. I am so glad I did it,” said one class participant.
Hunkpati Investments has long seen the need for a program like this in the Crow Creek Community. In a market analysis survey done by the Harvest Initiative in 2009, 74% of respondents said they were concerned about their credit record, while 53% marked that they would like information about how to repair their credit. Additionally, many Hunkpati clients interested in entrepreneurship have reported their lack of credit history or poor credit history a barrier to accomplishing their dreams. The launch of the program has had an instantaneous response from the Crow Creek community. Within the first hour of putting up signs advertising the program, Hunkpati Investments had numerous calls from interested community members.
The first loan recipient was Kelly Swanson, who works with Indian Health Service and would like to improve her credit so that she can buy a house.
“I have worked so hard on my credit, but without the program I don’t know if I would have been able to make it better. The program has given me the opportunity to do that so that I can buy a home someday,” Ms. Swanson, featured below, said regarding her participation in the credit builder program.
The Credit Builder revolving loan fund was made possible through a low-interest loan with the Oweesta Corporation, a Native Community Development Financial Institution Intermediary, and Hunkpati Investments plans to grow this loan fund to accommodate the large response this program has drawn from the community.
“We are so thankful for our partners, Oweesta and Consumer Credit Counseling, for making it possible for us to do this. We have seen models of the program really working on several other reservations and are glad to be able to offer this opportunity to our community,” remarked Executive Director, Krystal Langholz.
For more information about the Hunkpati Credit Builder program or the next scheduled Credit When Credit is Due class, please call 605-245-2148.
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