Thank you for supporting the Branford Microfund (BMF) and the emergency assistance we provide to Branford residents in need. Last year, because of your help, we were able to increase the number of interest-free micro loans we make to individuals and families facing unexpected financial emergencies.
Most of our loan recipients live paycheck to paycheck, or on fixed incomes, and lack the financial resources to cover emergencies. They seek loans for a variety of urgent financial needs ranging from replacing a broken water heater, providing a security deposit on a place to live, or making a down payment on a used car in order to get to work.
Last year, our five-member volunteer loan committee processed 61 applications for loan requests that totaled more than $150,000. They worked hard to respond quickly, and to help applicants determine their eligibility and ability to repay their loan. As a result, BMF was able to provide qualified applicants with interest-free loans ranging from $399 to $3,000, totaling $43,000.00 through 2022. Although our borrowers can take up to 30 months to pay, the average repayment schedule has been about 26 months.
Beyond a simple loan, we try to help improve the overall financial condition of our applicants. As our loan committee works with applicants to review the financial information on their application, they offer suggestions and tips that empower applicants to stabilize their finances. Examples include encouraging applicants to consolidate their debt, reduce household expenses by comparison shopping for everything from phone services to car insurance, and considering new ways to cut family expenses. We often refer our clients to other community partners who can provide additional basic needs assistance.
We expect to receive many more applications this year as inflation continues to make it difficult for low-income people in Branford to pay for basic needs, and nearly impossible for them to set aside savings for emergencies.
BMF is preparing to meet the need, and we hope you will continue to support our efforts.
Thank you again for your kind concern and generosity. We greatly appreciate your commitment to the Branford Microfund.
Sincerely,
The Branford Microfund Board of Directors
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