Using Local Microfinance to Assist Transitions from Homelessness (2010)

Undergraduates: Maggie West, Jon Young, Amanda Saunders, Naomi Fernando, Alex Pritchett Alexis Seccombe Thomas Owens, all CEF borrowers and CEF partners

Faculty Advisor: Gene Nichol
Department: Public Policy

---

This research explores the applicability of microfinance to the needs of the homeless in Orange County, North Carolina by reviewing the pilot launch of a program called the Community Empowerment Fund (CEF). While literature abounds comparing the success of international microfinance to the opportunities and challenges for replication domestically, this research focuses on the value of microfinance from the perspective of a team of volunteers working on-the-ground to provide homeless individuals with access to loans, savings opportunities and supportive financial services. The study begins by reviewing the need for domestic microfinance and the current market. This report documents CEF’s initial development—focusing on the pilot program’s successes, weaknesses, innovations and challenges—along with case studies of the first borrowers. Research incorporates loan officer and borrower feedback, reported to convey as completely as possible the experiences of the pilot team. We conclude with an outlook for CEF’s future role in the homeless and at-risk community, including plans for continued evaluation.