Penn Community Bank seeks to help ALICE population

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Often referred to as the working poor, many people – often single moms—are living from paycheck to paycheck.

While they are employed, sometimes with more than one job, they don’t make enough money to give them the financial safety net to get by.

One emergency, be it an unexpected medical bill, or a car repair, can kill their budget making them have to choose between paying their bills, buying food or making rent.

There’s an effort underway to change the perception of these people who often make too much money for government assistance but not enough to meet all their needs.

This group is now being referred to as ALICE, an acronym for Asset Limited, Income Constrained Employed.

Bernard Tynes, executive vice president and chief experience and impact officer at Penn Community Bank, said his institution is working with Bucks County and the United Way of Bucks County to help eliminate the stigma of this population and to help provide resources they need.

“Nationally, 36 million families are unable to afford the basic household bills,” Tynes said. “This is the workforce behind the workforce, janitors, childcare providers cafeteria workers,”

He said in Bucks County alone the ALICE population represents 27% of the population.

Throughout the month of March, United Way is working with Penn Community Bank to release a series of video testimonials featuring local ALICE families, including a woman they refer to only as Rachel, a medical receptionist and single mom who participated in the LIFT United program, a collaboration with the Credit Counseling Center.

After receiving financial coaching, Rachel qualified for help with a down payment and a used car loan backed by United Way.

“Because of United Way, I have stability in my life,” she said in a release.

United Way of Bucks County President and CEO Marissa Christie said the work is important.

“We are thrilled to be shining a spotlight on the challenges faced by ALICE households,” said Christie. “At United Way, our programs are designed to help ALICE – and to ensure that they can remain stably employed. Now we have the opportunity to educate community members about how they can help, too.”

Tynes said Penn Community is helping to develop programming outside of the confines of government programs that can help this group of people become more financially stable.

He said the LIFT program, which provides education and auto loans for members of the ALICE population, is an important component of those efforts.

“Reliable transportation is a major issue for this population,” Tynes said. “Providing auto loans with financial education, we believe is critical to help these people progress.”

He said the financial education that comes with the program is vital because it helps with such things as making sure the individuals are not taken advantage of.

Something as simple as an unexpected car repair can be devastating to someone in the ALICE population as they have to choose what they can spend their money on and what they can’t.

“A lot of the homeless population didn’t just wake up there,” Tynes said. “There were ripple effects of the decisions they had to make.”