Financial Capabilities, a pilot program launched just three years ago at the IRC in Richmond, has reached an exciting milestone: distributing over $1 million in loans to clients across the state with zero loan defaults.

IRC set up this program in January 2021 to support newcomers and other vulnerable populations in building their financial knowledge, skills, and assets. Services include high quality financial coaching, banking access, budgeting support, credit building and credit repair, asset building, tax filing and remediation support, and access to financial products. The program works in partnership with IRC's Center for Economic Opportunity (CEO).

Traditional consumer financing presents significant barriers to refugees, newcomers, and low-income families in the United States who want to participate in the system. Individuals with no preexisting credit, as well as those who do not yet have an income, typically cannot participate in such financing. Often, newcomers cannot apply for credit cards. They also face denials if they apply for traditional loans, or they find themselves at the mercy of predatory lenders who charge them extremely high interest rates.

Through the IRC's Financial Capabilities program, participants can apply for CEO loans, which they receive in tandem with financial coaching, and they can successfully build their credit, purchase cars to get to work, receive supplemental income, and get access to training and educational opportunities that can lead to higher earning potential.  

Two financial coaches joined the Economic Empowerment team at the Richmond office in 2023 to contribute to a bundled-services-model of program delivery, addressing the needs of clients holistically. Thanks to the efforts of these coaches, as of July 15, IRC Richmond had distributed $1,132,928.99 across 141 loans and with 0 defaults.

This milestone demonstrates the financial success newcomers can achieve when they are given fair access to programs that support their resettlement in our communities.