3 Fullerton churches start mini loan program to prevent people from going homeless

A mini loan program started by three Catholic churches in Fullerton to help the working poor avoid homelessness is gaining momentum, with funding now firmly in place and prospective recipients being interviewed by volunteers.

The St. Vincent de Paul societies at St. Mary, St. Juliana Falconieri and St. Philip Benizi parishes are banding together to run a new program that will provide participants with low interest loans of up to $7,500 to help them keep their housing or get back into it.

The Michael Clements Mini Loan Program aims to reduce the number of people who are homeless, at risk of becoming homeless, or caught in a cycle of debt by providing them with affordable, accessible loans that can be used to help them get back on their feet.

“We find that there are many people who are working, but are struggling to make ends meet,” said Thomas Saenz, a deacon at St. Juliana who is involved in the initiative. “We understand that many of them require rental assistance or require support in getting the deposits and other funds necessary to get into an apartment and we just really felt that something needed to be done to help them.”

The three churches have been working together for years to improve living conditions for the homeless through what’s known as the Fullerton Tri-Parish Collaborative, Saenz said. Most notably, the group worked alongside the city and other individuals, agencies, interfaith groups and nonprofits to get a transitional care shelter for the homeless established in Fullerton.

Through the mini loan program, the collaborative aims to stop homelessness before it starts by focusing on areas where the working poor need the most help.

Organizers say that many of those who are at risk of becoming homeless are stuck in a debt cycle that makes it difficult for them to get ahead.

One day they can be employed, living in an apartment or hotel, and using high interest loans to supplement their income, and just days later they can find themselves at risk of eviction or saddled with hefty medical bills if life brings unexpected changes. If they do end up homeless, it’s even harder for them to repay high interest loans, bills and debts, while also trying to save up to move back into stable housing, organizers said.

The program aims to stop this cycle by offering two types of loans: One that the working homeless can use to cover apartment move-in fees, and one that participants can use to pay off high interest debts so that they have more funds available to put toward housing.

The loans, which will be administered through the Notre Dame Credit Union, will range from $500 to $7,500, and will be repaid over 36 months at 2% interest. Repayments will be reported to the credit bureaus, which will help participants start or rebuild their credit.

In addition to repaying the loan, recipients must also take a basic financial literacy training that covers topics such as budgeting and financial discipline, Saenz said. After successfully repaying their loan and completing the training, they’ll receive a $50 bonus to start a savings account.

“The goal is to help the working poor – those who are really making an effort to live their lives as we all want to live but they’re really struggling – and those who may be on the verge of becoming homeless and who want to get back from falling into that state of being without a home,” Saenz said.

“We felt that helping people goes beyond extending charity,” he said. “It also means giving them an opportunity to get ahead and established, and have a life that everyone is entitled to.”

​Saenz said that plans for the loan program are moving right along. The program was launched in September, the credit union was brought on board in October, and donations from individuals and organizations have been rolling in since then.

The funds for the program will come directly from gifts, donations and grants. Although the group hasn’t quite hit its $100,000 fundraising target, it’s collected enough money to where it can start making loans, Saenz said.

Organizers say the loan program will be self-sustaining, in that loan repayments will go back into a collective pot so that they can be loaned out to new applicants.

“The funds are in, the bank is ready to help administer the program, and we have the three parishes identifying potential applicants and conducting home visits,” Saenz said.

Program volunteers are currently screening for potential applicants in Fullerton, but will also be expanding their search into surrounding cities such as Anaheim, Placentia, Yorba Linda, Brea, La Habra, La Mirada and Buena Park, Saenz said. Those interested in applying can also contact the three churches directly.

Fr. Dennis Kriz, pastor of St. Philip Benizi, said the idea for the program emerged over the last few years as he and other organizers spoke to residents about their living situations while interacting with them at food distributions and other outreach events.

Kriz said he’s encountered scores of local families living in precarious situations – from those living on the streets while they await government assistance, to those doubled up in cramped apartments, to those living out of their car at the end of the month because they can no longer afford a hotel room.

“I could see that they were working, but they were unable to get themselves out of the situation,” Kriz said. “And so, it occurred to me that this would be a way that perhaps we could get some of these families out of there because some of this just gets really heartbreaking.

“This is John Steinbeck, ‘Grapes of Wrath,’ stuff,” he said. “You would think that in our time this would be basically unheard of. And yet there are dozens of families that find themselves in this situation.”

The program is named for Michael Clements – a Fullerton native who died in 2022 – who dedicated his life to helping others. Clements advocated for children with special needs, worked to revitalize low-income neighborhoods in Santa Ana, and pressed for better working conditions for migrant farmworkers alongside Cesar Chavez.

Although the program is open to people of all walks and faiths, organizers say it’s also a way for the three churches to minister to the community.

“We’re doing good work here, but there’s a deeper meaning to this,” Saenz said. “As Catholic Christians we believe in the dignity of every human being and that everyone has a right to live according to their dignity with good housing, good shelter, good educational opportunities, and it’s a challenge. So as a faith-based community, we feel called to help them in that regard.”

As the roll out of the mini loan program picks up steam, organizers say they are optimistic about the positive changes that it could bring to the community – one person or family at a time.

“We are very thankful for the generosity of our donors and our volunteers,” Saenz said. “We look forward to making a positive impact in the lives of people through this program and others.”

For more information, visit michaelclementsminiloanprogram.com.