NEWS RELEASE: Common Wealth Charlotte Welcomes 3-Year U.S. Bank Commitment
Growing nonprofit promotes financial capability over financial assistance.
Charlotte, N.C., Monday March 7, 2022 — Common Wealth Charlotte is pleased to announce U.S. Bank’s 3-year commitment to CWC to assist the nonprofit organization in its mission to serve Charlotte’s low-income wage earners by promoting financial capability as a true pathway to upward economic mobility.
“At U.S. Bank, we're focused on creative solutions to address the critical issue of upward mobility,” said Jeff Gatica, vice president, Charlotte Community Affairs Manager. “We're excited to support non-profit organizations that share this commitment like Common Wealth Charlotte.”
Common Wealth Charlotte provides financial capability building services to nonprofits and workforce development agencies throughout Charlotte and Mecklenburg County. In response to the COVID-19 pandemic, CWC expanded its Opportunity Loan program to offer a 0%-interest Income Gap loan as a bridge to cover expenses of clients prior to (and after) the federal stimulus. Recycling loan payments, it loaned more than $690,000 to individuals in the service industries to avoid eviction and loss of transportation.
“Our model is unique to anything else in Charlotte and all of North Carolina,” said Chuck Jones, executive director. “When we do our job well, a client builds a short-term emergency fund, and improves their credit score so they no longer have to rely on charitable or government financial assistance or worse, predatory lending services.”
Common Wealth Charlotte serves the estimated 200,000 Charlotte residents who work full time yet have take-home pay of between $1,600 and $2,000 per month (30 to 35 percent of the area median income). With an annual goal of serving 5,000 clients per year, CWC provides the following services:
Financial literacy: Complimentary trauma-informed financial education (TIFE), an approach to financial literacy that incorporates a deep understanding of the physical, psychological and emotional trauma that can be experienced by economically-vulnerable families.
Access to banking: Through partnerships with banks and credit unions, CWC connects its clients with traditional, non-predatory financial services, steering them away from fringe services such as high-fee check cashing and prepaid debit cards.
Opportunity Loans: CWC provides Opportunity Loans up to $750 with six-month terms and 0% annual percentage rate (APR). Loans are made possible from a donor-funded collateral pool. Proceeds from the loans can be used for financial emergencies, to pay off predatory loans or to address priority items such as evictions and auto repossessions that substantially affect clients' credit scores. The successful repayment of this loan can materially increase a client's credit score.
“U.S. Bank is making a three-year commitment so Common Wealth Charlotte will be able to think longer and larger,” Gatica concluded, “and continue to expand its offering to a greater percentage of those families for whom financial stability has been elusive.”
About Common Wealth Charlotte
Common Wealth Charlotte (CWC) is a catalyst for improving lives. CWC replaces uncertainty and reliance on charitable and government assistance with financial capability, equipping Charlotte's economically-vulnerable population with trauma-informed education, certified financial counseling, asset- and wealth-building skills, and access to non-predatory banking services and 0% interest loans. Being financially capable is the foundation of true upward economic mobility. More importantly, financial capability brings hope—and hope goes a long way to heal trauma.
CWC works with Charlotte's low-income wage earners, or the approximately 200,000 residents working full time but only taking home $1600/month (30 to 35 percent of the area median income - or AMI). CWC believes financial instability underpins every challenge faced by this population, including housing, transportation, education, employment security, debt management and access to healthcare. CWC’s mission to establish pathways to financial stability is integral to this population’s well-being, as well as to Charlotte’s community-wide initiative of increasing upward mobility for its underserved residents. To find out more, visit commonwealthcharlotte.org.
About U.S. Bank
U.S. Bancorp, with nearly 70,000 employees and $573 billion in assets as of Dec. 31, 2021, is the parent company of U.S. Bank National Association. The Minneapolis-based company serves millions of customers locally, nationally and globally through a diversified mix of businesses: Consumer and Business Banking; Payment Services; Corporate & Commercial Banking; and Wealth Management and Investment Services. The company has been recognized for its approach to digital innovation, social responsibility, and customer service, including being named one of the 2021 World’s Most Ethical Companies and Fortune’s most admired super regional bank. Learn more at usbank.com/about.
FOR MORE INFORMATION, CONTACT:
Amy Jacobs, Chief Opportunity Officer, ajacobs@commonwealthcharlotte.org