Nonprofit offers Champaign Microloan Option

The Champaign City council may collaborate with Justine Petersen, a nonprofit organization. Justine Petersen may give people with low to moderate-income microloans. Microloans are small loans issued by individuals rather than banks or credit unions. The loans are issued by an individual or grouped across many individuals; who contribute part of the total amount.

At the council’s meeting on Tuesday, 12/13/2016, the city council decided to pursue the partnership. Justine Petersen is a nonprofit, in East St. Louis Illinois, that helps individuals and businesses. The nonprofit assists people with credit building, homeownership and other aspects of personal finance besides microlending. For small business, Justine Peterson gives the microloans to help small businesses.

The loan amounts, in Champaign, expect to be between $10,000 and $15,000. Individual homeowners would receive $10,000 while commercial businesses receive $15,000.

The U.S. Census Bureau reports that the average household debt is $5,700. The total U.S. consumer debt is $3.4 Trillion. Why the high debt? When an individual does not have the capital, they need for purchases or to start a business, they dip into credit. Alternatives could include borrowing from family, 401(K) loans, reverse mortgages that can be fiscally irresponsible.

The loans from Justine Peterson would allow small-business start-ups money for rent, products or other items necessary to increase a business. People trying to purchase homes can use the microloans for down payments, closing costs and other items associated with home buying.

Story Lead From: http://www.news-gazette.com/news/local/2016-12-14/nonprofit-microloan-provider-offers-champaign-gift-deal.html
Debt Statistics: https://www.valuepenguin.com/average-credit-card-debt

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