Caption: Small business owner and Peruvian immigrant Jessica Ortega qualified for a car loan after joining a cesta lending circle
Small business owner and Peruvian immigrant Jessica Ortega qualified for a car loan after joining a cesta lending circle 

Mission District lending circle helps low-income earners pursue dreams

From: KALW
Length: 00:04:46

Since the banking crisis of 2008, major lenders have become much more cautious about giving out loans. That’s left many people who have low or no credit in a deep financial hole. So one local group decided to re-invent an old concept—the lending circle: Members of a community deposit money into a common pool; then they take turns using that money to start businesses, pay off bills, and send their children to college. Reporter Alexa Vaughn went to see how it works. Read the full description.

Jessortega_small Since the banking crisis of 2008, major lenders have become much more cautious about giving out loans. That’s left many people who have low or no credit in a deep financial hole. So one local group decided to re-invent an old concept—the lending circle: Members of a community deposit money into a common pool; then they take turns using that money to start businesses, pay off bills, and send their children to college. Reporter Alexa Vaughn went to see how it works.

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Piece Description

Broadcast History

KALW 91.7FM:
June 6, 2011

Transcript

ALEXA VAUGHN: Alicia Villanueva is washing dishes in a narrow kitchen, while just a few feet away her eldest son Pedro is playing a guitar on his bed.

The small Berkeley apartment is a tight fit for Alicia’s family of five, but that doesn’t distract them from making big plans outside of it. Ten years after emigrating from Puerto Vallarta, Mexico, 18-year-old Pedro is finishing up his first year at SF State and Alicia is launching her own tamale business.

ALICIA VILLANUEVA: You know everybody comes to this blessed beautiful country to follow their dreams, our dreams, no? And get a better life for your kids.

About this time last year though, it looked like the family might not even get to keep the apartment. Alicia and her husband ran a delivery business which was hit hard by the recession.

ALICIA VILLANUEVA: We were doing really good. But then October, it start our nightmare.

Then bu...
Read the full transcript

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http://kalwnews.org/audio/2011/06/06/mission-district-lending-circle-helps-low-income-earners-pursue-dreams_1024818.html