F. A. Q.
How Does an Impact Loan Work?
FAQs
What is THE COMMUNITY IMPACT FUND?
The Community Impact Fund is a 501(C)(3) nonprofit organization established to prosper “communities” worldwide. The key to prospering communities worldwide is financial well-being for all.
What is an IMPACT LOAN?
CIF offers a 0% interest loan with a flexible payback schedule to individuals in need. To qualify for a loan, an individual (Borrower) applies to CIF for consideration. CIF conducts diligence to ensure the borrower qualifies for assistance under IRS regulations and CIF policies and procedures. Once approved for the Loan, a distribution of the approved amount will be made directly to a bank account provided by the Borrower.
What is the AMOUNT OF THE LOAN?
Loans are based on the needs cited in the application. The maximum loan amount is $3,000.
What are the TERMS OF THE LOAN?
A repayment schedule will be set up automatically for the full loan amount amortized over 12 months.
What are the terms of the FLEXIBLE REPAYMENT SCHEDULE?
Sometimes you may be in a situation where you can’t make a payment. We do our best to support you by allowing you to occasionally defer a monthly payment. This moves the payment to the end of your repayment schedule so you will still need to pay it eventually but it does not collect interest. Borrowers have the option to make a prepayment to pay off the loan faster and any prepayment will be applied to the final monthly payment schedule. HOWEVER PLEASE NOTE: Making a manual payment DOES NOT cancel your automatic payment that is set to withdraw each month. Therefore, if you don’t wish to have the additional payment withdrawn, you must email loans@communityimpactfund.org at least FIVE DAYS prior to the day your payment is due.
What is the SAVINGS INCENTIVE?
We take 10% of each loan and hold that as a “Savings Incentive” that will be payable to the participant as a reward for building an emergency savings account following the repayment of their loan. Please visit the Savings Incentive tab to learn about the program requirements.
Who QUALIFIES for the Impact Loan?
Those who meet the eligibility requirements established by their Active Work or Employer.
How are APPROVAL decisions made?
Approval decisions are made based upon the information provided by the applicant. Applicants are required to provide a completed application, and must meet the criteria reviewed in the pre-check section of the application.
How are LOANS DISBURSED?
Loans will be distributed by CIF to the approved recipient directly to the applicant’s bank account. Payments will be sent within 48 business hours of the loan being approved..
How are the FUNDS GOVERNED?
This Fund is governed by The Community Impact Fund. CIF is a nonprofit 501(c)(3) organization that is responsible for responding to all inquiries, vetting all applications, and distributing funds to approved applicants.
Will my loan payment be deemed as TAXABLE income?
Any loans received by applicants will not be deemed as taxable income.
Will this loan show up on my CREDIT REPORT?
No, at this time Impact Loans are not reported to the Credit Bureaus.
Who do I CONTACT if I have any questions about this program?
Please reach out to CIF at loans@communityimpactfund.org