Transportation Solutions Loan Program

[Jump to Frequently Asked Questions]

CEAP's Transportation Solutions Car Loan Program began in 1984 with a grant through The McKnight Foundation in response to insufficient public transportation networks, coupled with ineffective resources found in many single-parent households. In essence, as jobs began to require greater commuting distances, many families struggled to find reliable transportation because of limited household finances. In addition, obtainable and affordable childcare often failed to meet the convenience of a bus route or bus schedule. Thus, families already experiencing financial hardship faced additional stress and difficulty in maintaining work and adequate childcare.

CEAP's Transportation Solutions loan program, in keeping with the mandate of the original McKnight program, offers 0% interest vehicle loans for the purpose of purchasing a vehicle (up to $5,000.00) repaid in monthly installments.

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Eligibility Requirements

All applicants must meet the following requirements to be eligible for a car loan**:

• Be an involved parent of a dependent child.
• Be at least 18 years of age.
• Possess a valid Minnesota driver's license.
• Be living at their current residence for a minimum of 6 months.
• Be employed for the past 6 months.
• Must not be in default on any CEAP financial service.
• Individuals who have filed bankruptcy are only eligible after the bankruptcy has been discharged for a minimum of 12 months.
• Must be current on rent or mortgage.
• Must be unable to borrow from a conventional lending institution at a reasonable rate of interest.
• Must be a legal resident of the United States.
• Must not have had a vehicle repossessed in the past 12 months.
• Must attend a CEAP approved Financial Literacy/Credit Seminar prior to loan closing.
• Household income cannot exceed 80% of area median income.
• Must provide evidence of sufficient disposable income to repay the loan.

* All applicants must agree to complete a loan application, meet with a program facilitator, and attend financial literacy classes in order to be considered for a car loan.

**Meeting eligibility requirements does not guarantee a car loan.

The Communities We Serve

Families living in the following communities may apply for a Transportation Solutions loan with CEAP (if your community is not listed below, call us and we will direct you to the community that would serve your family):
All communities in Anoka County; and,

Albertville Big Lake Brooklyn Center Brooklyn Park Buffalo Champlin Corcoran Dayton Elk River Greenfield Hamel Hanover Hassan Hopkins Independence Lorreto Maple Grove

Maple Plain Medina Minneapolis Monticello Mounds View Navarre New Brighton Osseo Otsego Princeton Rockford Rogers St. Louis Park St. Michael Zimmerman

Download an Application:

• Purchase Application (If link doesn't work, get Adobe Reader)

Frequently Asked Questions

How do I apply?

Download and complete the application form and return it together with all requested materials to the address listed on the application or, call (763) 566-9600 and ask to apply for the Transportation Solutions Loan Program.

I don't live in the service area. Do you ever make exceptions?

No. However, we may be able to refer you to an agency that offers the loan in your community.

I have been employed for over two years, but I just switched jobs three months ago. Am I still eligible to apply?

If there is not a significant gap in employment from one job to another and you have been at your current job at least three months, you would be eligible to apply.

I have been employed with the same company for over six months, but I am just coming off of maternity leave. Am I eligible?

Yes. However, you will need to wait until you have accumulated at least 1 month of pay before CEAP will review your application.

What kind of documentation do you require for the Transportation Solutions Loan Program?

A complete checklist of required documentation is listed on each application.

I am self-employed. What do you want for verification in my case?

You probably filled out form 1040 for taxes, so we would want your previous two years' of tax returns along with evidence of current year-to-date income.

I am paid in tips/commissions only. What kind of verification do you want?

We can only count that income which you report on your tax returns.

Do you look at a credit report?

CEAP does review a credit report. However, our review guidelines may differ from a bank or a credit union in terms of how we evaluate credit information.

Do you choose a car for me?

No, but we do have resources available to help you. Also, each car has to pass a third party inspection.

I want to buy a car at an auction. How does financing work for this option?

This is not an option. We only finance cars purchased through dealerships or private sellers.

Can I reapply if I have already received a loan in the past?

Yes; it is not uncommon for families to use this program more than once, assuming of course that payment history on a previous loan is satisfactory. Keep in mind, however, that the ultimate goal in this program is to situate you in a better position to obtain a bank loan.

Do I have to be single to qualify for the car loan?

No, married couples are eligible provided their combined income doesn't exceed the income guidelines. Call and ask us what the income limit is for your size household.

For more information, call CEAP at (763) 566-9600