Berwyn entrepreneur Jay Coen Gilbert found the statistic startling: Approximately 64 percent of Americans do not have enough money in their bank accounts to cover a $500 emergency, writes Jane Von Bergen for the Philadelphia Inquirer.
Coen Gilbert is the co-founder of B Lab, a nonprofit that certifies companies with good employment, environmental, and community practices. Prior to B Lab, he co-founded and sold AND1, a $250 million basketball footwear and apparel company.
What can companies do if an employee finds himself or herself in a financial emergency?
In a speech at a recent conference, Coen Gilbert cited an example he had heard about from Rhino Foods. At Rhino, employees with a certain level of seniority can get a no-questions-asked loan of up to $1,000. The loan comes from the company’s credit line, and repayment comes via an extra deduction from the employee’s paycheck.
At the end of the loan payment term, employees can elect to continue the deduction, which becomes an automatic payroll deduction into a savings account. The employees can then begin to build an asset base.
Read more about Coen Gilbert in the Philadelphia Inquirer by clicking here.