Obtaining Loans for Solitary Parents
On July 31, 2009 in Finance
The life of a single parent is difficult and has many challenges. Nonetheless, overcoming these challenges could be a source of great personal satisfaction. Many support mechanism are in place to assist single parents in successfully meeting the challenges of raising a family. Among those that can help are single-parent support groups and organizations, as well as church networks. For financial assistance, many foundations offer grants and loans for single parents.
Much information on these support mechanisms for the single parent could be found in the Single Parents’ Cash and Sources Guide. This guide is an online publication that could be read for free. This e-book is rich with practical tips. One is in getting the best results from a foundation. One advice is giving priority on those foundations specifically addressing single parents. Calling by phone is an ideal way to initiate quick contact and get information on loans from these foundations. There are even single mother college loans available specifically for single women raising kids.
The guide suggests that single parents must carefully follow the foundation’s application process. They should be prepared to submit references and proof of income if the foundations require such documentation. They should submit a letter if it is required. Individual letters should be written and sent to each foundation or organization. Positive results are unlikely if form letters are used. Grants for single parents are very competitive so you want to make sure you put your best foot forward.
There are foundations, which do not give loans for single parents directly. The loans are granted through non-profit groups. Therefore, these groups are also important for single parents. These groups and agencies are usually listed under the “social service” category of the telephone directory’s yellow pages. An appeal for assistance can also be coursed through a church group familiar with the single parent’s situation. Grants for single mothers are often available through women’s groups or women owned businesses.
Loans for single parents could likewise be secured in underserved communities’ outreach programs. Some banks now want to tap lending opportunities among those with limited access to financing and are using outreach programs as loan conduits. These banks believe that they can benefit from this market.
Statistical data support this growth trend. The latest Census Bureau statistics show that small businesses owned by minorities are increasing by 20% annually. This increase is also an indicator that more business loans for single parents need to come from the government. The Small Business Administration is helping meet this rising demand. At present, 25% additional assistance has been extended to women under the agency’s financing guarantee program.
Coping with single parenthood should also extend beyond seeking loans. Single parents can avail of federal and state government programs. One is the TANF (Temporary Assistance for Needy Families). Skills training and job placement, and securing food stamps as well as financial help are the benefits that could be sought from this agency. For help with heating bills, the government body to go to is the LIHEAP (Low Income Housing Energy Program). Many practical solutions are available to make a decent living, provided a single parent is resourceful enough.