Poor credit is a barrier to affordable housing. Lending circles are a tool for those in poverty

BRAC, the largest NGO in the world and one of the leaders in microfinance as an approach to combating poverty, discovered that despite its successes, microcredit did not always reach what are called the Ultra-Poor in effective, sustainable ways. So they formed partnerships and launched a new, comprehensive initiative that involves consumption support, technical and financial literacy training, and asset management to create a pathway to prosperity called the "graduation approach."

Rwanda's Community-Based Health Insurance program (Mutuelle de Santé) has expanded affordable healthcare access to over 93% of the population by charging income-tiered premiums (as low as $2.23 per person annually). By dramatically reducing out-of-pocket medical costs for low-income families, more families have effectively used the healthcare available.

Public banks are owned and run by governments, and because they store money for the state instead of individuals, they can invest back into the communities they serve instead of extracting from them in the chase for profits.

Mumbuca is a digital currency used in Maricà’s basic income program. Residents, with few eligibility requirements, can qualify for a monthly stipend to purchase goods and services using a smart phone or a card. The currency runs on the digital platform E-dinheiro and can only be spent in the city limits. Individuals cannot swap Mumbucas for national currency, but businesses can after a 48-hour waiting period and a 1% fee. Local currencies, which are popular in Brazil, help residents increase personal savings and, with increased stipends during the Covid-19 pandemic, allowed informal workers to stay home.

The Brooklyn Cooperative Federal Credit Union provides small business loans to local Black and Brown businesses, through average investments of $24,000. This small, community lender provides more funding to local businesses than larger national banks like Citibank, Wells Fargo and Bank of America, helping support local businesses and finance community development.

The Denver-based Triple Bottom Line Foundation funds projects to retrofit low-income, multi-family properties that house underserved groups. The projects include energy-efficiency upgrades, solar power installations, and weatherization upgrades among others.

PNC Bank is bringing a mobile branch to communities that don’t have sufficient access to banking. The RV-like unit is outfitted to be a functional banking service and was custom-built for this initiative. Services can be provided in English and Spanish and the goal of the mobile unit is to empower and educate users about what banking resources are available to them.

A pediatric care center in Philadelphia has partnered with a nonprofit that "helps people with tax prep and asset-building" as well as an organization that provides financial counselors to offer young patients free, on-site help with their taxes. The initiative is modeled after Boston Medical Center' StreetCred program which has "returned more than $5.3 million to more than 2,700 low-income families since 2016."

An American nonprofit called the Community Reinvestment Fund expands access to small business loans by partnering with almost two dozen groups across the country to set up and scale up their community development lending. Founded in 1988, the group essentially takes on the risk of a SBA license so that others could benefit from their license. They created an online platform called Spark that redesigned the user interface of the existing loan processor platform to better facilitate the exchange of money. They have now supported loans for 1,000 communities across 49 states.

CNote has provided a source of funding for federally certified Community Development Financial Institutions by pooling cash from foundations, bigger banks, philanthropists, and donor-advised funds to counter the lack of available cash flow experienced by CDFIs, which are lenders but not banks. Federal COVID-19 funding set aside $30 billion specifically for CDFIs that overwhelmingly lend to women- and minority-owned businesses, which face persistent racial and gender biases and are unable to successfully tap into lending and grants such as the Paycheck Protection Program through traditional lenders.