Obtaining Loans for Solo Caregivers

On July 31, 2009 in Finance

Being a single parent is tough with all its difficult challenges. However, great personal satisfaction could be felt after these difficulties are hurdled. Many support mechanism are in place to assist single parents in successfully meeting the challenges of raising a family. Assistance may be sought from single-parent organizations, support groups, and church networks. Many foundations offer financial aid through grants and loans for single parents.

A single can learn much from the Single Parents’ Cash and Sources Guide about these support systems. This guide is an online publication that could be read for free. Many practical tips are contained in this guide. 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 loans for single mothers 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. Form letters sent to multiple foundations are ineffective. Single parent college money are very competitive so you want to make sure you put your best foot forward.

Some foundations grant loans for single parents indirectly. The loans are granted through non-profit groups. Hence, single parents will need to first work with these organizations. Their contact details be accessed by checking the “social service” heading in the yellow pages of a telephone directory. A church group which may be familiar with a single parent’s case is another source of potential assistance. Single mother grants 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 big lenders now want to tap this growth market.

Statistical data support this growth trend. A 20% annual growth in small business owned by minorities has been noted by the Census Bureau. This gain also indicates the growing need for government to grant more business loans for single parents. This demand growth is being addressed at the Small Business Administration. At present, 25% additional assistance has been extended to women under the agency’s financing guarantee program.

Other methods are available besides taking loans to help single parents. There are many federal and state government programs to help needy single parents. They could turn to the TANF (Temporary Assistance for Needy Families). This agency can help in skills training and job placement, and getting food stamps as well as financial assistance. LIHEAP (Low Income Housing Energy Program) can provide help with heating bill payments. Many practical solutions are available to make a decent living, provided a single parent is resourceful enough.

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