Small loans to be available for E. Baltimore residents

The Baltimore Alliance for Economic Inclusion, a partnership including financial institutions and the Neighborhood Housing Services of Baltimore Inc., plans to announce this morning a pilot program to provide short-term small loans to residents in East Baltimore. The goal of the "Borrow and Save" program is to prevent residents from taking out check advances that charge rates as high as 26 percent for a brief loan. Neighborhood Housing received $70,000 in grants for the pilot. The loans, which will range from $300 to $1,000, will charge an annual interest rate of 7.99 percent and must be repaid within a year. To qualify, borrowers must live in East Baltimore, have a job, undergo financial counseling and save at least $5 per month at a participating bank branch. Neighborhood Housing will match the first $5 of savings. As borrowers repay loans, that money will become available to lend to others, said Alicia Schuller, marketing coordinator for Neighborhood Housing Services. For more information, call 410-327-1200.

- Eileen Ambrose