December Student Organization of the Month

Forza Financial

Contributing Writer, Elisabeth García

            Forza Financial isn’t your average student organization. It’s an innovative lending institution mirrored in only two other universities in the U.S.

            Forza, “strength” in Italian, is an organization designed to help low-income entrepreneurs get their start, said David Bailey, the organization’s president.

He said many of these people have poor or no credit scores and cannot find loans.

“Almost none of our borrowers have a banking relationship,” Bailey said. “They don’t even have a checking account.”

That’s where Forza, a nonprofit organization, steps in. Bailey said many times, the reason entrepreneurs cannot get a loan is not their ability to pay it back but the circumstances in their lives. Forza works to re-gauge an applicant’s credit score and approve them for a loan.

Bailey said Forza only charges 10-20 percent compared to the rates of money lenders- 50 percent/month- and cash advance- 453 percent/year.

The company was started in the fall of 2009 when Bailey presented his idea to faculty at UA. Two other students, Alex Murray and Matt Miller, had similar ideas and the three formed Forza Financial.

From there, it’s become a company staffed entirely by more than 24 students, which might seem like an impossibility when you hear words like “microfinance” and “lending institution.”

“It is business-based but students do 100 percent of the work,” he said. “The beauty of what we’re doing is we use student labor.”

Even the company’s website was completely designed by students. These staffers earn independent study credit through the Honors College, Bailey said.

Eventually, he would like to introduce a microfinance class on campus. This is quite an advancement for UA considering the fact that a microfinance minor doesn’t exist.

The company also offers free classes to their lenders that cover issues from tax returns to creating a budget. Bailey said they hope to build a calendar with other companies to offer more classes.

The classes are one condition that lenders face in order to get a loan. Bailey said many of the loans are recommended from community leaders, such as church pastors. This makes social collateral, the company’s insurance, work so well.

Bailey said six people will be grouped into threes as borrowers. The second three cannot receive their loan until the first three have paid off a substantial portion of their loan.

This creates a peer pressure that makes the borrowing system so successful. The fear of a whole church judging you for not repaying your loan and inhibiting a fellow member’s loan is a big motivator, Bailey said.

            He also emphasized the fact that Forza isn’t just seeking outside lenders in the community.

“We also lend to students,” he said. “One of the most underserved populations for credit is students.”

Bailey said the company’s goal is to establish this kind of business throughout the southeast. They also want to build their research, making the more marketable to banking partners.

A possible reality TV show is also rumored but details are yet to be released, he said.

For now, members are working hard and empowering each other to go further, Bailey said. Chief officers meet every Sunday, the whole group meets monthly, and each team meets once a week to develop ideas.

“At the bare minimum, the least that someone spends is three hours,” he said.

Some members spend as much as 20-30 hours a week, speaking to the dedication of the staff. Bailey said the ability to change lives is a driving force that excites so many Forza workers.

“I could not speak highly enough about the quality and caliber of everyone in the program,” he said.

Bailey said more UA students are welcome to be part of this with several areas of involvement. First, students should go to Forza’s website and check out the company’s history.

Next, students should connect through Facebook or Twitter and contact one of the chief officers.

Bailey said they’re seeking independent applicants with good people skills but who aren’t over-committed.

“When you commit to something in Forza, it is paramount that you do it,” he said.

            Forza is currently accepting applications for affordable business loans. Local and student entrepreneurs are encouraged to see for themselves at www.ForzaFinancial.com.