Chattanooga, TN, September 15, 2025
News Summary
BetterFi, a nonprofit lender, is expanding its services in Chattanooga with support from the United Way to combat increasing predatory lending issues. The United Way has provided $36,000 in funding for BetterFi’s programs, which aim to assist clients in refinancing predatory loans and improving their financial literacy. This funding is part of a larger initiative to support various community organizations in addressing financial instability and enhance the economic well-being of local families.
Chattanooga, TN – BetterFi Expands Services with United Way Funding to Combat Predatory Lending
BetterFi, a community-focused nonprofit lender, is expanding its services in Chattanooga thanks to new funding from the United Way of Greater Chattanooga. This initiative comes amid growing concerns over the prevalence of predatory lending in the area, which affects many residents who struggle financially. The United Way is distributing approximately $686,000 to 21 organizations within Chattanooga and Northwest Georgia as part of its “catalyst fund” intended to support families in need.
Many individuals in Chattanooga find themselves caught in a cycle of high-interest loans, resulting in debts that often exceed the original amounts borrowed. One of BetterFi’s first clients in Chattanooga borrowed $2,000 in flex loans, only to owe more than the initial amount after a year and a half. BetterFi’s Executive Director noted that the design of flex loans, which allow borrowing up to $4,000, often entails high interest rates and additional fees, leading to financial strain.
To combat these issues, BetterFi offers programs that help clients refinance predatory loans, enabling them to reduce costs and improve credit scores. The $36,000 funding received from the United Way will bolster BetterFi’s savings and credit builder program, which is aimed at assisting clients in meeting their savings goals while also enhancing their creditworthiness. Furthermore, BetterFi provides financial coaching, focusing on budgeting and the fundamentals of borrowing.
The United Way’s financial support extends beyond BetterFi, as it allocates $6.6 million over three years to 19 nonprofits to assist children and caregivers. This initiative is part of a broader strategy to help combat the issues faced by the ALICE population, which consists of households in Hamilton County earning above the poverty level yet still unable to meet basic needs.
This distribution of funds also includes a recent amount of $600,000 for various organizations frequently referred by the United Way’s 211 helpline, providing essential services such as food and housing assistance. BetterFi and Two Bikes Chattanooga are among the organizations benefiting from these funds.
Two Bikes Chattanooga, which refurbishes and sells donated bicycles while giving half away to underserved communities, received $36,000 from the United Way. This funding will support the employment of two high school interns this fall, allowing them to gain hands-on experience in bike repair and customer service at a pay rate of $15 an hour. The local effort mirrors a successful program in Knoxville, where over 100 students have been served in three years.
The goal of these initiatives is to foster a competitive pay environment for internships and help students develop foundational social skills while positively impacting the community.
Background on Predatory Lending in Chattanooga
Predatory lending practices have become a significant concern for many residents in Chattanooga, pushing individuals into cycles of debt and financial hardship. Often, borrowers resort to these loans to cover unexpected expenses, such as vehicle repairs or legal fees associated with parole. The landscape of financial lending in the area is challenging, with many individuals lacking access to safer borrowing options.
To provide a pathway out of such financial difficulties, BetterFi’s programs aim not only to improve credit scores but also to equip clients with knowledge about managing their finances effectively. Improved credit requires consistent effort and can be disrupted by financial missteps, making this education critical for sustainable economic stability.
Summary of Funding Allocation
The United Way’s funding initiative represents a concerted effort to support community resilience through various organizations and programs, targeting needs related to financial stability, child welfare, and employment training.
Key Features of BetterFi and Associated Programs
| Feature | Description |
|---|---|
| Organization | BetterFi |
| Funding Amount from United Way | $36,000 |
| Loan Type | Flex Loans (up to $4,000) |
| Target Population | Hamilton County households |
| Focus Areas | Refinancing loans, Financial coaching, Credit improvement |
| Associated Programs | Two Bikes Chattanooga |
FAQ
What is BetterFi?
BetterFi is a nonprofit lender that focuses on providing affordable loans and financial education to the community, helping to combat predatory lending practices.
How does BetterFi assist with predatory loans?
BetterFi offers refinancing options for individuals with predatory loans, helping them to lower their payments and work towards improving their credit scores.
What organizations received funding from the United Way?
The United Way distributed funds to 21 organizations in Chattanooga and Northwest Georgia, including BetterFi and Two Bikes Chattanooga, to support various community services.
How is the funding being used?
BetterFi will utilize its funding to enhance its savings and credit builder program, while Two Bikes Chattanooga will use it to support high school internships, providing job training and experience for students.
Deeper Dive: News & Info About This Topic
HERE Resources
Additional Resources
- Times Free Press: United Way of Greater Chattanooga Uses $686K to Expand Services
- Wikipedia: Predatory Lending
- Times Free Press: United Way Distributes Funds to Nonprofits in Chattanooga
- Google Search: Nonprofit Lending
- Times Free Press: BetterFi Launches Programs to Assist Residents
- Google Scholar: Community Focused Nonprofit Lending
- Times Free Press: Two Bikes Chattanooga Receives Funding for Community Programs
- Encyclopedia Britannica: Nonprofit Organization
- Times Free Press: Chattanooga’s Financial Struggles for Families
- Google News: ALICE Population Chattanooga
Author: STAFF HERE CHATTANOOGA WRITER
The CHATTANOOGA STAFF WRITER represents the experienced team at HEREChattanooga.com, your go-to source for actionable local news and information in Chattanooga, Hamilton County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Riverbend Festival, Chattanooga Oktoberfest, and Moon River Festival. Our coverage extends to key organizations like the Chattanooga Area Chamber of Commerce and United Way of Greater Chattanooga, plus leading businesses in manufacturing, insurance, and utilities that power the local economy such as Volkswagen Chattanooga, BlueCross BlueShield of Tennessee, and EPB. As part of the broader HERE network, including HEREBristol.com, HEREKnoxville.com, HEREMemphis.com, and HERENashville.com, we provide comprehensive, credible insights into Tennessee's dynamic landscape.
