Reliable Transportation for 40 Working Families: Auto Microloans

“The Auto Loan Program will truly change lives, giving autonomy to a single mother who is trying to balance her children’s needs with viable employment without a dependency on our limited public transportation. We look forward to piloting the program this year!” - Kathy Swahn, Executive Director of the Drake House

The Issue

Reliable transportation is a barrier for the working poor to escape poverty. Families that do not have a car face limited public transportation, increased commute times, less hours available to earn an income, less time with family and increased child care costs. Additionally, the average rate for a sub-prime borrower is above 18%, which would be difficult for anyone to finance.

The Solution

In partnership with local nonprofits, Alpharetta Rotary designed a loan program for working families to alleviate their loan payment. At a cost of $760 per loan, the Club will “buy-down” the interest rate to a manageable 8% which would save a low-income family $2,000 during the life of a $7500 loan.

Our Partners

Recipients of the Loan Program would be referred by a partnering non-profit. Qualified referrals would be based on the following

• Income
• Continuous 6-month work history
• Down Payment
• Personal finance class completion

Georgia’s Own Credit Union is facilitating the loan program. Alpharetta Rotary will fund the loan program with $15,000 and local business matching. Rotarians serve as Personal Finance Mentors.

35-40 families will earn reliable transportation that will increase their income and give more time with their family.