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Small Loan Fund

Alternative to Payday Lending

The Black Clergy Collaborative of Memphis is partnering with Hope Credit Union to provide access to affordable financial products, services, and financial tools to low-income Memphis communities. With this funding, we want to discourage the use of high-interest payday loans and other predatory lending approaches. 

BCCM and HCU have each contributed $50,000 toward the fund, for a total of $100,000 in security deposits for the program. How does it work? Through our small loan fund, applicants can ask for a low-fee, low-rate loan of $500-$1,000 with a 12-month repayment window. Part of the loan starts a savings account at Hope Credit Union; once the loan is repaid the savings and dividends earned go back to the applicant. 

Loan Terms

  • Minimum Loan Amount:  $500.00
  • Maximum Loan Amount: $1000.00
  • Annual percentage rate (APR): 6% -18%, based on credit score
  • Repayment period: Up to 12  months; an automatic draft from a checking or savings account for loan payment is preferred
  • Application fee: $10
  • Hope Membership required (membership fee $10 and $15 share deposit required)

To apply for a loan, each applicant will need to provide the following:

  1. A $10 loan application fee. The application fee is not refundable and can be taken from loan proceeds.
  2. Documents that verify income.
    Ex. Two pay stubs, Social Security award letter, Retirement income, Alimony payment, etc.
  3. Proof of identification.
    Ex. Social Security Number, Individual Tax ID Number (ITIN), Tennessee ID
  4. Evidence of a Memphis or neighboring city address.
  5. Agree to repay the loan.
  6. A $10 membership and a $15 savings deposit fee. The membership fee and savings deposit can be taken from loan proceeds.
  7. Consent to BCCM sharing your information with Hope Credit Union.

Join Us

The Black Clergy Collaborative of Memphis (BCCM) comprises members who work together to address systemic issues affecting Black communities in the United States. To become a member of the Black Clergy Collaborative, please fill out the form below. A member of our team will contact you within seven business days to discuss your committee interests and answer any questions you may have.