Community Loan Program

Simple, Fair and Transparent

Our loan system is designed to provide immediate financial relief without interest or hidden fees. Every loan is funded by our member contributions, making it a circle of trust and support.

Loan Options

You may apply for one loan at a time. Once it’s fully repaid, you may request another.

  • $100 Loan – Repay in 1 month

  • $500 Loan – Repay in 3 months

  • $1,000 Loan – Repay in 6 months

  • $3,000 Loan (maximum) – Repay in 12 months

Key Principles

  • No Interest. No Fees.

    You repay only what you borrow.

  • One Loan at a Time.

    A loan must be fully repaid before requesting another.

  • Trust & Accountability.

    Members who miss payments may temporarily lose loan access until they re-establish repayment history.

  • Community First.

    For larger needs (housing, vehicles, land, shared resources), we pool funds to purchase community-owned assets, not individual loans.

Why This Works

  • Members receive fast access to small loans when needed.

  • Repayments recycle funds back into the community for the next borrower.

  • Together, we build shared wealth and resources instead of sending money to banks or lenders.

Example

Sarah borrows $500. She has $100 in community credits (earned by teaching a class and volunteering).

  • Loan amount: $500

  • Credits applied: –$100

  • Amount to repay: $400

She repays $134 each month for 3 months.

  • She pays back only $400 (after credits).

  • No late fees, no interest.

  • Once repaid, she is eligible for another loan.

Credit Policy

  • Members may apply up to 50% of their total credits toward loan repayment.

  • Credits are earned by teaching, volunteering, or donating extra to the Community Fund.

  • The more you contribute, the more credits you earn for future support.

We’re not a bank — we’re a community where every member contributes, every member benefits, and together we rise.

Strategic Asset-Building Loan Program Policy

1. Purpose

The Community Wealth & Asset Loan Fund provides mission-aligned mini-loans to community members to support:

  • Vehicle acquisition for transportation to work, education, or business.

  • Home ownership or improvement.

  • Business startup, expansion, or cooperative ventures.

  • Other asset-building opportunities consistent with the non-profit's charitable mission.

This program strengthens cooperative economics, builds financial independence, and recycles resources back into the community.

2. Eligibility

  • Must be an active member of Empowered Path Alliance or affiliated cooperative community.

  • Loan must be used for asset-building purposes.

  • Must submit a loan proposal/plan showing purpose, expected outcomes, and repayment plan.

  • Must NOT be currently receiving assistance from our Emergency Funding Program

3. Loan Terms

  • Loan Amounts: $500 – $10,000 (project-dependent).

  • Interest Rate: 0–3% (mission-based) or waived for cooperative/community projects.

  • Repayment Term: Flexible (6–36 months), depending on project type and community capacity.

  • Collateral: Optional; the asset itself may secure the loan, but profit is not the purpose.

4. Application & Approval Process

  1. Application Submission: Member completes Loan Request Form, including project plan, budget, and anticipated outcomes.

  2. Committee Review: Loan Committee evaluates proposals for mission alignment, feasibility, and community impact.

  3. Board Oversight: Board reviews and approves large loans or special cases.

  4. Loan Agreement: Approved members sign a formal agreement detailing purpose, repayment terms, and community expectations.

5. Community-Based Lending Model

  • Revolving Fund: All loan repayments return to the lending pool to fund future borrowers.

  • Mentorship/Contribution: Borrowers are encouraged to mentor or train new borrowers, creating social and human capital.

  • Transparency: Fund balances, active loans, and program impact are shared via community dashboards or updates.

  • Pooling Resources: Fund supported by donations, membership contributions, and fundraising initiatives.

6. Default & Hardship

  • Defaults are part of community lending and handled mission-aligned:

  • Loan Committee may restructure repayment.

  • Members may repay through skills, volunteering, or mentorship.

  • In verified hardship, loan balance may be converted to a grant.

  • No punitive collection actions; program focuses on community benefit, not profit. However, borrower may be ineligible for future loans or community membership

7. Oversight & Accountability

  • Loan Committee approves each loan (minimum two members).

  • Board reviews policy annually and approves fund changes.

  • Records of applications, approvals, loans, repayments, and defaults are maintained for IRS compliance.

  • Program aligns with 508(c)(1)(a) mission, serving a broad charitable class without enriching insiders

8. Program Funding

  • Sources: Donations, membership contributions, fundraising campaigns, revolving fund repayments.

  • Loan Loss Reserve: Maintain a reserve to absorb expected defaults without jeopardizing program sustainability.

9. Integration with Cooperative Economics

  • Loans circulate wealth within the community, building both financial and social capital.

  • Members investing in assets or businesses contribute to the broader cooperative ecosystem.

  • Program encourages skills development, peer support, and mentoring.

  • Over time, the fund becomes self-sustaining, supporting multiple rounds of wealth-building initiatives.

© 2026 Empowered Path Alliance.

Compassion in Action. Hope in Every Step.

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Empowered Path Alliance is a 508(c)(1)(A) nonprofit organization dedicated to empowering single parents through faith-inspired support and holistic growth.  

EIN: 39-3695857

655H Fairview Rd #131 Simpsonville, SC 29680

(864) 477-5275