NeighborWorks® America's Sustainable Business Initiative helps community-based NeighborWorks organizations strengthen their foundations and grow revenue. In 2024, the SBI provide seed grants to seven network organizations with promising earned revenue strategies. Over the next few weeks, as part of Small Business Month, NeighborWorks will highlight some of those outcomes.
In Elkhart County, Indiana, transportation poses a significant challenge to achieving financial stability. While the county has limited public transit provided by the Interurban Trolley system, it is unreliable for the realities of local employment. Higher-paying factory jobs in the RV industry, the county’s economic backbone, are located on the outskirts of town, often inaccessible by bus. The lack of reliable vehicles locks families into more accessible low-wage jobs, perpetuating cycles of poverty.
Lacasa Inc., a longstanding NeighborWorks network organization in Goshen, which was already strengthening housing and wealth-building opportunities in the region, decided to try approaching things from another angle. The organization used a seed grant from the Sustainable Business Initiative as a catalyst for a new effort to expand access to affordable transportation through an Alternative Auto Lending Program.
As the second-largest HUD-certified housing counseling agency in Indiana, Lacasa already served thousands of residents through homeownership counseling, financial education, matched savings programs and home repair loan products. Tackling the transportation problem was not a departure from the organization’s mission, but a natural extension to empower individuals and families to achieve financial stability by addressing one of the most pressing local barriers.
“It's really about making sure people can get to and from work, doctor's appointments, and to all the things that come along with kids in an effort to create more stable families and a stable workforce for the employers around the area,” said Lacasa CEO Jeremy Stutsman.
A program grows
The Alternative Auto Lending Program concept began when Interra Credit Union, one of Lacasa’s longtime community partners, raised a pressing issue: Too many residents with low or no credit were being denied traditional auto loans, leading them to take advantage of predatory “buy-here, pay-here” dealerships, where the true cost of a car often amounted to interest rates of 28% or more, often for unreliable vehicles. Interra approached Lacasa to co-design a solution that combined lending with one-on-one coaching.
The $75,000 SBI seed grant covered legal compliance, loan licensing and staff time to manage program development, allowing Lacasa to officially launch the Auto Loans by Lacasa program in February 2025 with a soft rollout.
“We had been working on this, and we didn't have an extra pot of money specifically to fund this initiative and handle the legal fees for it and what specifically needed to be done for the loan license,” said Lacasa VP of Financial Empowerment Ashley Bowen. “When we saw the SBI seed grant come out, it was incredible. It's what helped us turn this idea into an actual program that is now up and running.”
“The Seed Grant program did everything we hoped it would do, and then some," said Alicia McCoy, interim vice president, National Homeownership Programs and Lending. "We were able to help seven organizations expand in areas ranging from expanding capacity for small business loans to exploring how to adapt modular homes.”
The defining aspect of Lacasa’s loan program is that it combines financial coaching with relationship-based lending. Applicants work one-on-one with a coach to review budgets, understand credit and complete auto loan education, including car maintenance. Lacasa then pre-approves the loan, and Interra Credit Union services it, ensuring seamless payments.
Through this approach, Lacasa can guide applicants beyond the immediate loan — helping them repair credit, build financial habits, and prepare for larger goals such as homeownership — rather than simply approving or denying based on a score.
“With risk-based lending, they can look at you on paper and tell you whether or not you're approved,” said Bowen. “With relationship-based lending, we look at the paper, but we also want to hear the story of what actually got you there, and your goals and aspirations for your future. We want to be a part of that future by actually getting you there, so it's not, ‘Here's your loan. Good luck making the payments.’ It's ‘Here's your loan, and if you can't make a payment, call me, because we need to work together to work through whatever's going on in your life.”
Seeding Opportunity
The program’s initial rollout demonstrated that community demand for fair, affordable auto loans was strong. In its first month, they received more than 30 inquiries, and staff quickly realized adjustments were needed. For example, initial eligibility criteria based on 200% of the Federal Poverty Level proved unsustainable; families at that income level struggled to manage all car-related expenses. The threshold was adjusted to 80% of area median income, making the loans more viable for participants.
The program's early stages have not been without challenges. Many applicants arrived with high levels of “bad debt” and unrealistic expectations, requiring staff to refine their messaging and outreach. Yet, this careful vetting reflects Lacasa’s commitment to improving a family’s situation through lending as a pathway to long-term stability. The revolving loan fund, seeded with $400,000 from Interra, ensures that repayments cycle back into new loans.
Continuing the Impact
Lacasa’s immediate goal is to issue 50 loans per year. Interra’s initial commitment is expected to be matched by other institutions as proof of concept grows. The long-term vision is to expand beyond Elkhart County. Scaling the loan pool to $1 million and beyond, securing CDFI certification and recruiting new financial partners are all on the horizon.
While the initial focus was on providing financing directly to individuals, partnering with local employers quickly emerged as a strategic way to expand the program’s reach. In a region with limited public transit, employer referrals help identify participants facing transportation barriers. When employees learn about the program through their workplace, they are often more invested in the process, leading to stronger follow-through and greater long-term success.
As Bowen shared, “I’m most looking forward to the success stories… watching their credit scores go up and seeing them on a larger path toward homeownership”.
The impact of SBI’s seed funding is already evident in Lacasa’s ability to turn a bold idea into a functioning program that offers families a fair alternative to predatory lending. Bowen summarized, “Patience is key to success in new ventures…This will be an impactful program as long as we stay committed to offering it to those who need it.”
