By Ray Birch
WESTBROOK, Maine – Sometimes a small loan can have a big impact on how immigrants start their lives in the U.S.—and go a long way toward building a strong relationship with the credit union.
That’s the thinking behind Infinity FCU’s new loan for asylum seekers. Infinity Federal Credit Union and ProsperityME are collaborating to give asylum seekers no-interest loans to help them get into their first apartments. The loans are for rental security deposits, which can be hard for asylum seekers to pay because they lack the money and the documentation to get funding despite being legally qualified, the credit union explained.
Since a pilot of the program began early in 2019, approximately 35 asylum seekers have been placed in apartments with more in the pipeline. Infinity FCU has pledged a rolling $100,000 for the ongoing administration of the program, guaranteed by a fund from ProsperityME.
ProsperityME is a Porttland-based nonprofit that aims to bring together Maine's financial services professionals to help immigrant residents establish a solid financial footing.
“Asylum seekers are coming here and applying for asylum,” said Kathy Guillroy, VP of marketing. “They apply for asylum once they get here, but there is a big gap—often 12 to 18 months—from that time of application until they receive a work permit.”
Trying to Find Housing
That makes it difficult—if not impossible—said Guillroy, for asylum seekers to find a place to stay and live a decent life.
“They often stay at friends’ and relatives’ homes, sleeping on couches or living in shelters,” Guillroy explained. “This is an important loan to give these people, because it improves their quality of life, which is credit unions’ mission, and just makes it easier for them to get started here.”
There is a large immigrant population in Westbrook, so the need is big in the area, Guillroy explained.
Kathy Guillroy
“They are eligible for general assistance, so in some cases they are able to pay their monthly housing bills,” said Guillroy. “But there is a big void when it comes to that initial security deposit. Most asylum seekers don’t have that kind of money when they arrive. They just need to get their foot in the door, so to speak, and then they can find grant money and other assistance to help them before they find their first job.”
The program is supported by ProsperityME, which secures the loans up to $25,000. Guillroy said Infinity will keep up to $100,000 of the loans on its books.
Working Out ‘Very Well’
Chief Lending Officer Kandy Moreau said the credit union currently has about $23,000 in balances represented by the loans, with the typical advance being about $900 to $1,000.
“This program has worked out very well for us on a number of fronts,” said Moreau. “It’s become another way in which we can help our communities, and we are very active in our communities. It’s also been good for the credit union from a business perspective.”
The loan carries no interest and as a result it creates substantial goodwill in the new members who are turning into dependable, solid members.
“We have had no delinquencies and now several of the asylum seekers have paid off their loans and they are opening checking accounts and getting car loans,” she said. “These are good members because not only are they hard-working people, they appreciate what the credit union has done for them and they turn to us first for their other financial needs.”
No Handouts Wanted
Moreau also said asylum seekers appreciate the loan is not a gift.
“These people don’t want handouts,” she said. “They tell us that. They want to do things on their own and they work hard to pay us back.”
The program does not ask for the first payment until eight months after funds are distributed. Moreau said the loan program is growing.
“ProsperityME recognized us as their community partner,” Moreau explained. “You can't just walk in off the street and get this program. It starts with working with ProsperityME, who then pairs the person with a mentor and then they are referred to us as part of the ProsperityME program. The immigrant community here is pretty tight-knit, as is this small town itself, so word spreads fast. The growth from this program is very organic. This is a good way to help the community, help people get on their feet, and help the credit union.”