A crucial barrier to prosperity for many refugees is a lack of credit and access to financing. To meet this challenge, the IRC launched the Center for Economic Opportunity (CEO), which offers credit building, auto, personal and business loans. As of 2023, CEO made more than 6,000 loans totaling more than $25 million to refugees across 20 states.
The CEO supports refugee borrowers to increase their loan amount after successfully repaying a small-dollar, interest-free loan. Participants with no previous credit history achieved an average credit score of 640-680 within eight months. The IRC in Silver Spring combines the loan program with financial literacy courses Through which refugees receive loans, learn about credit, budgeting, saving and investing. Over the past year, more than 200 refugees participated in the financial literacy program and received over $1 million dollars in loans. One of the families to participate are the Urbinas.
The IRC resettled the Urbina family from El Salvador in 2021. The father Jose, mother Blanca, and two adult daughters Yenifer and Jacqueline completed the financial literacy program together. They went from no credit score to a score in the 700’s. Their ultimate goal is to qualify for a mortgage loan to purchase a home. Because of the financial literacy program with the IRC, that goal is now a possibility. “We are very grateful to the IRC for helping us to build our credit and educate us on how to be successful financially.”