The recovery of unemployment numbers still has a long way to go, but there are jobs open.
One nonprofit is trying to help people get the training they need to fill those jobs without having to take out student loans.
“We built the career-impact bond as a win-win-win tool for everyone involved. For the businesses who are hiring, for the training programs looking to serve more people, and most importantly for the workers themselves,” said Tracy Palandjian, co-founder and CEO of Social Finance.
Social Finance’s Career Impact Bond strategy means people who enroll in their training programs don't pay a dime until they've landed a stable job in their field.
After that, they share a fixed amount of their income until the program is paid back. Palandjian says if people lose their jobs, the payments stop.
“At any given point that you fall below that income threshold or you get laid off again, you are free of any obligations. That's part of the income share agreement. Again, unlike a loan when you're on the hook no matter what, this is actually comparable with your financial success,” said Palandjian.
Social Finance started working with job training programs in 2019. Right now, people can sign up for training in three different IT areas and in diesel mechanics.
Palandjian says that's where they saw a lot of job demand. But the pandemic has led to more interest in Social Finance and more openings in other fields.
The nonprofit is currently working to expand on the programs it offers.
“The fund will have around a dozen programs and we're very laser focused on sectors that are relatively recession resistant and continuing to grow,” said Palandjian. “The skill trades, green energy, solar panel installation, wind turbine technicians, health care and the allied health and jobs up and down the nursing ladder.”
The graduation rate with Social Finance is nearly 100% and 89% have jobs. The average income gain for those who enroll is about $12,000.
You can learn more about the non-profit on their website.