The City of Savannah is one of a handful of leaders among municipalities developing anti-poverty strategies, according to a report released Jan. 20 by the Corporation for Enterprise Development (CFED). The new field--"municipal financial empowerment"--goes beyond traditional efforts aimed at building residents' income by encouraging savings and investment, increasing knowledge of and access to affordable financial products, and protecting residents in the financial marketplace.
In Savannah last year, for example, Georgia's Own Credit Union was able to offer an alternative rapid anticipation loan at several Volunteer Income Tax Assistance sites. These loans compete with commercial tax preparers' loan products, which can cost consumers anywhere from $300-$500. In 2010, 136 loans were disbursed to qualified consumers by the credit union for a total amount of $415,944 at any average cost of just $15 per loan.
"Whether it's through access to mainstream banking, financial education and counseling, asset building or consumer protection, this work offers important and replicable ways to advance the economic security of their cities' populations," said Mayor Otis Johnson. "Going forward, the challenge of replicating these strategies across the country will lie, in part, in ensuring that such initiatives enhance the effectiveness of traditonal anti-poverty approaches."
To find the full report, go to:
Or read a WSJ blog post on the report:
http://blogs.wsj.com/economics/2011/01/20/cities-launch-programs-to-help-citizens-save/
