Frequently Asked Questions

No, you are never responsible for an employee’s outstanding loan. If an employee leaves a participating CLC employer, we simply will deduct the remaining payments directly from the borrower’s checking account that they provided us during the initial loan application.

No, there is no fee to offer this innovative benefit to your employees. We would argue that offering the Small Dollar Loan program to your employees actually saves you money since financially stable employees are more productive, have a higher employment retention rate and have reduced costs associated with financial stress, such as absenteeism and illness.

We know that your time is valuable, that’s why we strive to ensure that offering the Small Dollar Loan program is not labor intensive for your HR Staff. We do this through offering an automated software program (KENN) that allows you to easily verify employment, set-up payroll deductions, utilize reports and stop payments once the loan is paid in full.

To assist you in promoting the Small Dollar Loan program, we provide you with marketing materials – including promotional flyers, template language for an email announcement, a Small Dollar Loan benefit sheet and we will happily host an in-person information session at your workplace.

At the Community Loan Center, a borrower’s credit history does not factor into our decision to assist them with a Small Dollar Loan. If an employee is in need of money, the Small Dollar Loan program is easily accessible to them through their employer.

Our repayment period is 12 months, unlike many credit unions that have a 6 month payback period. Most credit unions require borrowers to be a member in order to take out a loan, but with the Small Dollar Loan program, a borrower must simply work for a participating employer, there is no membership required.

No, we do not require credit checks on our Small Dollar Loans.

If you leave your participating employer while you have a Small Dollar Loan, your scheduled loan repayments will be automatically drafted by us from your checking account, which you provide on your initial loan application. We will draft repayments from your checking account until your loan is paid in full. 

Once you pay down half of your orginal loan balance, you can then apply for a new loan. However, a borrower can never have an outstanding loan over $1,000.

There is a $20 loan fee that you must pay. This fee is built into your loan, so you do not have to pay any upfront costs with the Small Dollar Loan program. The $20 fee does not accrue interest and the re-payment is divided evenly over the 12 month repayment period.

Yes! All Small Dollar Loan borrowers are eligible to receive free financial education with Chattanooga Neighborhood Enterprise. We offer a variety of educational opportunities to help meet your financial goals – these include our popular “Money School”, home buying workshops and meeting with a personal financial counselor.