For working families striving for financial stability, reliable transportation is often a critical yet challenging hurdle. The national Ways to Work car loan program steps in to bridge this gap, offering a pathway to vehicle ownership and, consequently, significant improvements in income, job security, and overall quality of life. An independent evaluation has recently highlighted the remarkable success of this initiative, confirming its positive impact on communities across the nation, including Oakton, Virginia, where Northern Virginia Family Service (NVFS) has been a dedicated program operator for over two years.
Mary Agee, President and CEO of NVFS, emphasizes the program’s vital role in the region, stating, “Ways to Work addresses a crucial need in our community by extending affordable credit to families who otherwise struggle to secure car financing. A dependable vehicle unlocks better job opportunities and frees up valuable time for families. The findings of this national evaluation strongly support what we’ve witnessed firsthand in Northern Virginia.”
Since initiating its Ways to Work program in July 2004, NVFS has facilitated 67 loans, totaling approximately $202,000, in partnership with Virginia Commerce Bank. Ways to Work acts as a loan guarantor, enabling access to credit for NVFS clients, who are predominantly single mothers employed in service sector roles. For these individuals, public transportation often falls short of meeting their diverse needs, whether it’s commuting to work or ensuring children reach daycare and school punctually.
Sharon LeGrande, NVFS Ways to Work program manager, underscores the transformative effect of these loans: “The data clearly demonstrates that providing working families with access to even modest loans yields significant gains in income and enhances their quality of life. The impact of these loans is truly substantial.”
The evaluation conducted by the OMG Center for Collaborative Learning in Philadelphia further revealed that Ways to Work is effectively fostering financial inclusion. Clients are progressing towards opening bank accounts and securing subsequent loans, demonstrating the program’s success in building creditworthiness and integrating participants into mainstream financial systems.
Ways to Work offers loans up to $4,000 to eligible working families who are typically deemed non-creditworthy by traditional financial institutions. These loans, carrying an 8 percent interest rate, primarily empower clients to purchase used vehicles, a crucial step towards self-sufficiency for many.
The evaluation’s findings are compelling: Ways to Work clients experienced an average increase of 41 percent in their take-home pay. Furthermore, over 80 percent of participants reported that car ownership directly contributed to job retention and reduced absenteeism. A significant majority also affirmed that having a car substantially improved their quality of life, enabled better childcare, and created opportunities for pursuing education or job training.
Jeffrey E. Faulkner, president of Ways to Work, emphasizes the broader implications of the program’s success: “This evaluation unequivocally shows that these loans translate into better employment, greater job stability, and an improved life trajectory for countless families in Northern Virginia and across the nation. These are impactful investments that are making a real difference.”
A cornerstone of the Ways to Work program is its commitment to enhancing clients’ financial literacy and responsible financial management. NVFS mandates financial literacy training for all clients and collaborates with Capital One to offer money management workshops.
LeGrande elaborates on this holistic approach: “We collaborate closely with our clients to align their spending with their budgets. Our aim is to equip them with the necessary financial tools not only to repay their current loan but also to strengthen their financial standing to the point where they can confidently access future credit for essential needs, such as a replacement vehicle or even homeownership.”
Ways to Work boasts an impressive loan repayment rate, with over 87 percent of loan funds repaid over the past decade. LeGrande also highlights the program’s broader community impact, noting that clients enthusiastically share how vehicle ownership has facilitated greater participation in community activities, religious organizations, and enabled their children to engage in extracurricular pursuits.
The origins of Ways to Work trace back to 1984, when it began as the Family Loan Program within the McKnight Foundation in Minneapolis. Inspired by focus groups with women transitioning from welfare, the foundation recognized the critical need for accessible, low-cost loans to facilitate their journey towards self-sufficiency.
Since its inception, the program has garnered substantial financial support from the McKnight Foundation and other philanthropic organizations, the federal government – particularly the Federal Transit Administration, which has committed $16 million through the Job Access and Reverse Commute program – and leading private sector companies, including Bank of America, which provided $8 million in low-interest loan capital in 1999.
Currently headquartered in Milwaukee, Ways to Work operates in 48 communities across 24 states. It has empowered over 23,000 families to stabilize and improve their financial circumstances through more than $36 million in loan funds, utilized for vehicle purchases, repairs, and other work-related transportation needs. For those interested in delving deeper into the OMG evaluation, further details are available at www.waystowork.org.
Ways to Work stands as a distinctive Community Development Financial Institution based in Milwaukee, WI. Through its network of loan offices nationwide, Ways to Work delivers small, short-term, low-interest loans to working families with challenging credit histories. The program serves as a vital alternative to predatory lending practices, catering to individuals demonstrating a strong commitment to enhancing their self-sufficiency and actively seeking greater engagement with mainstream financial markets.
