The Community Action Agency of St. Louis County’s (CAASTLC) Community Loan Center is offering a small loan option for working people in St. Louis County and city with unexpected expenses and limited affordable options for financial relief.
Participating businesses can offer the loan, funded by CAASTLC and its St. Louis-area financial partners, to their employees. The goal is to help low- and moderate-income employees meet unexpected expenses, such as medical bills, car repairs and basic living costs. The short-term loan is reported to credit agencies and may help improve credit scores.
Simmons Bank, which recently expanded its St. Louis presence through the acquisition of Reliance Bank, is the lead bank and largest financial contributor to the program. Reliance worked closely with CAASTLC to secure funding for this alternative to high-interest payday loans.
In addition to Simmons, participating local banks currently funding the total loan pool of $1.25 million include Midwest BankCentre, Banterra Bank and Busey Bank.
“Through our Community Loan Center, employees of participating businesses can now borrow up to $1,000 at a fixed interest rate with repayment over 12 months through automatic payroll deduction,” said Cenia D. Bosman, CAASTLC president and CEO.
“In Missouri, payday lenders can charge borrowers the equivalent of more than 400 percent for short-term loans. Typically, these loans must be paid in full within two weeks.”
Employers can make the loan program available as part of their employee benefits package. When an employee needs a loan, they can visit clcstlc.org to complete a loan application and, after verification, within a matter of days the loan funds are deposited into the borrower’s bank account.
More information about this program, including how employers can participate, is available at clcstlc.org or by calling Cenia D. Bosman at 314-863-0015.
