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KENTUCKY ALLIANCE OF CHURCHES FINANCIAL EMPOWERMENT INITIATIVE (KACFEI)

Bridging Financial Inequities For Parishioners and Kentuckians Through Credit Builder Legacy Loan Funds! 

The Kentucky Alliance of Churches Financial Empowerment Initiative (KACFEI) is a transformative program designed to empower faith-based communities across Kentucky by enabling churches to establish Legacy Loan Funds in their name. These funds provide $500 Credit Builder Loans to congregation members, helping them establish or repair their credit and achieve long-term financial stability.
 

This initiative is more than a financial program—it is a movement to address systemic inequities in access to credit, foster economic empowerment, and create lasting change in marginalized communities. By engaging churches as trusted community pillars, KACFEI equips faith-based organizations to directly impact their members' financial well-being and contribute to bridging the wealth gap in Kentucky.

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About

Mission & Goal

CREDIT BUILDER LEGACY LOAN FUNDS

Mission and Goal of the Legacy Loan Fund Initiative​

The Legacy Loan Fund Initiative is dedicated to bridging financial inequities by providing underserved and underbanked individuals—including Black, Hispanic, immigrant, rural, and college-aged communities—access to affordable credit-building tools and financial education. Through strategic partnerships with Kentucky churches and Noir Lending CDFI Inc., the initiative aims to empower individuals, strengthen communities, and create long-term economic resilience.

 

The initiative’s mission and goal are to:

  1. Expand Access to Credit: Provide $500 Credit Builder Loans to individuals facing barriers to traditional financial services, helping them improve their creditworthiness.

  2. Enhance Financial Literacy: Deliver targeted workshops and educational sessions to foster budgeting, saving, and sustainable credit habits.

  3. Foster Bank-Customer Relationships: Connect participants with banks to encourage ongoing engagement through savings accounts, checking accounts, and secured credit cards.

  4. Reduce Predatory Lending Reliance: Offer sustainable alternatives to high-interest loans, promoting financial stability and economic inclusion.

  5. Support CRA Compliance: Enable banks to fulfill their Community Reinvestment Act (CRA) obligations while creating a positive community impact.

  6. Establish a Legacy of Empowerment: Create a revolving loan fund system that ensures continued access to resources for future generations, leaving a lasting legacy of financial inclusion and economic opportunity.

By aligning financial empowerment with sustainable practices, the Legacy Loan Fund Initiative works to break cycles of financial inequity and build pathways to prosperity for individuals and communities across Kentucky.

 

Why This Initiative Is Needed​

Financial inequities have long impacted marginalized populations, with systemic barriers limiting access to affordable credit. This problem is particularly pronounced in Kentucky, where limited access to financial institutions and education further compounds the issue. Key groups affected include:

  • Black and Hispanic Kentuckians: Facing lower average credit scores and limited access to credit-building tools.

  • Immigrants: Representing 4% of Kentucky’s population, many struggle to navigate U.S. financial systems.

  • College-Aged Youth (18–24): Lack of credit history hinders access to housing, employment, and financial growth.

  • Rural Kentucky Residents: Struggling with limited access to financial services and educational resources, many residents rely on predatory lending practices to meet short-term needs, further exacerbating financial instability.

  • Marginalized Communities: Often relying on predatory lending, perpetuating cycles of debt and financial instability.

 

Key Statistics:

  • Predatory Lending Prevalence: In rural and underserved communities, payday lenders are disproportionately utilized, trapping residents in cycles of high-interest debt.

  • Credit Score Disparities:

    • 43% of rural Kentuckians are considered underbanked or unbanked, making credit access a significant challenge.

    • Black and Hispanic residents in Kentucky face average credit scores that are 40-60 points lower than White residents, limiting their opportunities for economic mobility.

  • Limited Financial Education Access: Rural areas often lack adequate resources to teach financial literacy, perpetuating generational cycles of poor credit habits.

 

By addressing these inequities, KACFEI provides a pathway to financial stability for underserved populations, particularly in rural Kentucky.

How It Works

LEGACY LOAN FUND PROCESS

Legacy Loan Funds:

Churches establish Legacy Loan Funds under their name, contributing tax-deductible donations to Noir Lending CDFI Inc. Loan repayments replenish the fund, enabling continuous community impact.

 

Fund Placement:

Legacy Loan Funds are deposited into a Noir Lending CDFI Inc. interest-bearing checking or savings account.

Funds are designated for approved loan recipients who meet the program’s criteria.

 

Loan Lifecycle: 

  • Loan Amount: $500 per recipient.

  • Loan Term: 12 months with affordable monthly payments.

  • Credit Reporting: Payments are reported to all three major credit bureaus.

 

Post-Loan Opportunity:

Upon full repayment of loan, Noir Lending will alert the bank’s designated representative to:

  • Meet with Loan Recipients: Encourage recipients to deposit the $500 into a personal savings or checking account at the bank.

  • Secured Credit Card Option (If Applicable): Present a secured credit card to help recipients continue their credit-building journey.

 

Financial Literacy Education:

Noir Lending CDFI Inc. will work with KACFEI to facilitate online educational sessions several times a month covering:

  • Budgeting and savings strategies.

  • Understanding credit reports and building credit scores.

  • Avoiding predatory lending and managing debt.

  • Introducing loan recipients to the facilitating bank’s financial services.

 

Financial education sessions ensure comprehensive support for participants and create opportunities for banks to strengthen community relationships.

 

 

Membership Levels for Churches:

 

Participating banks can contribute at the following levels to establish their Legacy Loan Funds:

  • $25,000 Visionary Legacy Loan Fund Level: Funds 50 loans annually.

  • $10,000 Empowerment Legacy Loan Fund Level: Funds 20 loans annually.

  • $5,000 Champion Legacy Loan Fund Level: Funds 10 loans annually.

  • $2,500 Advocate Legacy Loan Fund Level: Funds 5 loans annually.

  • $1,000 Supporter Legacy Loan Fund Level: Funds 2 loans annually.

 

A church’s Legacy Loan Fund is restricted for use within the contributing church’s congregation.

 

KACFEI Member Benefits

 

  • Quarterly Newsletters

  • KACFEI members will receive quarterly newsletters that include:

  • Updates on initiative progress.

  • Success stories from participating churches and their congregants.

  • Upcoming events and workshops to further financial empowerment.

  • Collaborative Opportunities

  • Members will collaborate on the creation of an Annual KACFEI Financial Empowerment Conference, which will:

  • Highlight initiative achievements and success stories.

  • Provide expert-led workshops on financial literacy and economic empowerment.

  • Foster networking among faith-based organizations across Kentucky.

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Impact Reporting

 

  • Participating churches receive annual reports detailing:

  • Number of loans issued.

  • Credit score improvements among recipients.

  • Success stories within the congregation.

  • Fund sustainability metrics (e.g., repayment rates and funds available for new loans).

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Program Benefits

 

For Individuals:

  • Improved credit scores and financial opportunities.

  • Access to housing, transportation, and better employment options.

For Churches:

  • Strengthened community ties and trust.

  • Recognition as leaders in financial empowerment.

For Communities:

  • Reduced reliance on predatory lending practices.

  • Increased long-term financial resilience.

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Call to Action

The Kentucky Alliance of Churches Financial Empowerment Initiative (KACFEI) empowers churches to lead the way in financial empowerment by addressing systemic inequities in access to credit. By establishing Legacy Loan Funds, your church can directly support the financial growth of congregation members, underserved individuals, including rural and urban Kentuckians, while fostering long-term economic resilience.

 

This innovative initiative provides a sustainable, impactful framework for your institution to create a legacy of empowerment and economic opportunity across Kentucky.

 

Take the first step today. Establish your church’s Legacy Loan Fund and become a champion of financial inclusion.

 
Inquiries

KACFEI
KENTUCKY ALLIANCE OF CHURCHES FINANCIAL EMPOWERMENT INITIATIVE
MINISTER WAYNE SHEMWELL
PROGRAM DIRECTOR
1-502-823-3161
WAYNE@NOIRLENDING.ORG

KACFEI LEGACY LOAN FUNDS

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