Fort Wayne, IN (WOWO) – In a major boost to efforts fighting predatory lending, the Foellinger Foundation has awarded a $100,000 Special Opportunity Grant to Brightpoint’s Community Loan Center of Northeast Indiana.

The funding will back Brightpoint’s loan loss reserve, enabling up to $1 million in new lending capacity. The Community Loan Center partners with local employers to offer low-cost small-dollar loans (typically up to $1,000) with manageable repayment terms—an alternative to high-interest payday loans.

Why This Matters

In Northeast Indiana, about 7 percent of families living paycheck to paycheck regularly rely on payday loans—with interest rates averaging 365% APR. Many turn to these loans in emergencies, such as unexpected medical bills, car repairs, or utility issues. But the high rates can trap borrowers in a spiraling cycle of debt.

This grant aims to intercept that cycle by providing a safer financial option. Brightpoint’s model emphasizes responsible small-dollar lending, making funds accessible to people in need without punishing interest.

What the Grant Enables

• Loan loss reserve support. The grant will fund Brightpoint’s reserve so it can absorb potential defaults without jeopardizing the program’s sustainability.

• Expanded capacity. With that safety net in place, Brightpoint can issue $1 million in new loans to workers who might otherwise turn to expensive payday lenders.

• Greater reach. By working through employer partnerships, the Community Loan Center can effectively bring services to people in their workplaces and local economies.

Voices Behind the Initiative

Sarah Strimmenos, President and CEO of the Foellinger Foundation, said:

“Inflation impacts have taken a toll on self-sufficiency in Allen County. Wages needed in 2025 to sustain a family of four have risen to over $80,000, up from just over $54,000 in 2020. Brightpoint offers affordable small-dollar loans, which help prevent individuals from sliding backward on the Independence Continuum and move people toward financial independence.”

Steve Hoffman, Brightpoint President and CEO, added:

“We’re deeply grateful to Foellinger Foundation. This support strengthens our mission to help families avoid the trap of high-cost credit and build more stable financial futures.”

Broader Economic Context

Rising inflation, increasing housing costs, and stagnant wages have strained many working families. For some, a single emergency can push them into financially precarious positions. Traditional lenders often avoid these riskier small-dollar loans, creating a void filled by payday lenders willing to charge extremely high interest rates.

Programs like Brightpoint’s seek to fill that void with more ethical, community-rooted options. In doing so, they aim not just to relieve immediate stress, but to help households maintain upward momentum—rather than falling back into deeper financial trouble.

What’s Next & How to Apply

The Foellinger Foundation is now accepting applications for its next giving cycle through November 7, 2025. Organizations interested in applying can visit doitbestfoundation.org for more details.

Meanwhile, Brightpoint’s Community Loan Center continues to expand access to safe, low-cost lending across Northeast Indiana. Interested workers should check if their employer partners with the program or visit Brightpoint’s website for details.