OREANDA-NEWS. Southwest Solutions, JPMorgan Chase & Co. and Mission Asset Fund (MAF) today announced the launch of Lending Circles, a new social loan program that will allow Detroit residents to safely build credit through zero-interest loans. Participants make monthly loan payments and take turns receiving zero-interest social loans, ranging from $300 to $2,500. All loan payments are reported to credit bureaus, enabling participants to build a credit history, raise credit scores and work towards greater financial stability.

MAF's award-winning Lending Circles are a fresh take on social lending, helping participants build credit while increasing assets and improving financial health. The average credit score increase for participants is 168 points.

"More than 30% of the people we've assisted with their financial situation in the last two years start with no credit history, and those with credit start with an average credit score of only 547," said Hector Hernandez, executive director of Southwest Economic Solutions. "Lending Circles will enable our clients to build and enhance their credit so they can take advantage of opportunities to become homeowners, entrepreneurs and college graduates."

Bringing Lending Circles to Detroit is the next step in JPMorgan Chase's $ 100 million commitment to Detroit's economic recovery. JPMorgan Chase recently awarded MAF a $1.5 million, three-year grant to expand Lending Circles to even more communities across the country and develop new technology to connect clients with on-demand loan information. Southwest Solutions is part of a growing network of 53 Lending Circles providers - and the first in the state of Michigan.

"We are proud to partner with Southwest Solutions and Mission Asset Fund to expand Lending Circles to Detroit," said Colleen Briggs, Program Officer, Financial Capability Initiatives, JPMorgan Chase. "Building a solid credit score is the critical first step to managing daily financial lives and accessing affordable capital to achieve long-term financial goals, such as purchasing a home or starting a business."

Of the 27 zip codes in the City of Detroit, the median credit score among residents is below 600 in all but one, according to Urban Institute tabulations of credit bureau data. Furthermore, a 2015 report from the Consumer Financial Protection Bureau reported that one in four Detroit households are "underbanked." Without sufficient access to checking or savings accounts, Detroit residents often turn to payday lenders and check cashers to meet their basic financial needs.

"Without credit scores, there are no 'good options' when you want to start a business or get a small loan," said Jose A. Quinonez, CEO, MAF. "Now, with the support of JPMorgan Chase and partners like Southwest Solutions, we are working together to provide innovative solutions to help Detroit residents succeed."