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Maryland New Americans Loan Program Evaluation

Research funded by National Council of La Raza

The center evaluated the impact of a small dollar loan program aimed at addressing the critical barrier of cost for immigrants working to become U.S. citizens.

Project Overview

Researchers at the UNC Center for Community Capital evaluated the impact of a new small dollar loan program aimed at addressing the critical barrier of cost for immigrants working to become U.S citizens. Although there are multiple barriers on the path to citizenship, the naturalization fee of nearly $700 remains a significant one.

CASA de Maryland, a community organization working with low-income Latinos, created the Maryland New Americans Loan Program to help legal permanent residents finance the cost of gaining citizenship. The loan program seeks to increase the rate of naturalization in Maryland by helping immigrants pay the cost of becoming citizens. It also aims to promote financial stability and sound financial behaviors through a loan product that offers incentives for timely and complete loan repayment. Participants receive financial coaching and education from local volunteers for six months. Once the loan is repaid, CASA refunds the initial application fee of $25 and matches it with a $25 savings incentive to encourage participants to continue saving.

The UNC Center for Community Capital collected data at key points throughout the loan repayment period and reported on a range of impact indicators: changes in financial literacy, intentions to save and financial values and goals. The evaluation informed proposals to replicate the project in other cities across the country.

The UNC Center for Community Capital conducts research and policy analysis on ways to make financial services work better for more people and communities.

 

© 2017 UNC Center for Community Capital
1700 Martin Luther King Blvd., Suite 129 • CB#3452, Chapel Hill NC 27599-3452 • 919.843.2140 • 877.783.2359 • communitycapital@unc.edu