CBLP is a consumer loan program that is available to anyone who is employed in the Cass Lake community. The loans are secured through the lender's employee leave/vacation/sick time. Lender’s payments are deducted from their payroll to LLFS. The CBLP loan term can vary from 6-18 months with an 8% interest.
The CBLP is designed to build a positive credit history for the lenders. According to our research, half of the employees in the our target market are not established in a financial institution. The CBLP provides a method for bankability by reporting the credit to the 3 major bureaus. Many CBLP lenders struggle with access to affordable credit, so it is our objective to provide affordable, safe loans while boosting the lender's credit score.
The average CBLP loan is $1,000. Other banks or financial institutions typically breakeven or lose money on small consumer loans like the CBLP loans, so they rarely give loans like this our at a low interest rate. However, LLFS makes over 500 CBLP loans a year to help our community with affordable credit building options.