DES MOINES, Iowa — A $300,000 grant from Bank of America is going to a Des Moines nonprofit that offers small business loans to refugees and immigrants in the metro.
Annie Brandt, a marketing executive with Bank of America, said the grant will be distributed over the next three years.
She said the bank chose to support Solidarity Microfinance as part of their commitment to advance racial equity.
Alomgir Hossain, the program director at Solidarity, said the organization gives loans to people who are unable to get loans from other banks.
"Our target [is the] poorest of the poor people who live in the community who [do] not have any other opportunity to go to other financial institutes due to their legal laws and legal papers," Hossain said.
Hossain said the program is based on the Grameen Model. To be eligible for the loan all a person needs is a social security number and an ID and to attend orientation with five other people.
Once a borrower is accepted, they must meet every other week to discuss their business.
Then, the first loan clients receive is between $500 and $1,000. The majority of it has to be invested in the business and some into savings, which Hossain said is "for emergency purposes in the future."
The loan must be paid back in six months to qualify for more.
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Brandt says the process is easy to use and is helpful when making loan repayments.
She also said Bank of America likes how Solidarity helps entrepreneurs build their credit scores.
"It's creating that wealth and that stability for the entrepreneur and their family," Brandt said.
Juana Castellanos used Solidarity Microfinance to get a loan for her snow cone business, and was excited to hear about the grant.
She said because of Solidarity Microfinance more people who are financially strapped, like she once was, will have the opportunity to get loans and open up businesses.
"The joys of having [my] own business is that [I'm} able to manage [my] own time and spend more time especially with [my] son," Castellanos said.
Hossain said people who complete the program increase their annual income by $12,000.
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