Arkansas CDFI Fills Financial Services Gap With Help of Local Barber College

Roland Kamara, Associate, Membership at Opportunity Finance Network

February 28, 2025 – 

OFN member People Trust offers innovative lending programs to support small businesses, first-time homeowners, and individuals often overlooked by traditional financial institutions.

Read time: 7 minutes

Black History Month celebrates and recognizes the achievements and contributions of African Americans throughout history, while also serving to educate people about aspects of Black history and experiences with racism and the struggle for equality that is often overlooked. This February we highlight one of Opportunity Finance Network (OFN)’s Black-led CDFI members, People Trust Community Loan Fund, and its Founder and CEO Arlo Washington, who recently joined OFN’s Board of Directors.

Established in 2016, People Trust’s primary purpose is to promote community development by providing access to capital, financial education, and technical assistance for communities that would otherwise not receive these opportunities. People Trust Community Loan Fund is a unique CDFI co-located with an anchor business, Washington Barber College, which was featured in the Oscar-nominated documentary short film “The Barber of Little Rock.”

The college actively facilitates federal student aid through Pell grants and direct loans, offering significant opportunities to low- and moderate-income individuals in Arkansas. Under Arlo Washington’s leadership, People Trust has graduated over 1,100 barbers and created more than 1,450 jobs within the state. 

Learn more from Arlo about his career journey, People Trust’s impact, CDFI industry challenges and opportunities, and more.

What does Black History Month mean to you and People Trust? 

Black History serves as both a foundation and a guiding force for People Trust, inspiring its ongoing efforts to create opportunities and foster financial stability within the communities it serves. 

What’s your “why” for working in the community development space, and how did you end up at People Trust?  

My journey into the community development space is deeply personal and rooted in my own experiences with adversity. After losing my mother and facing homelessness briefly, I pursued barbering, opening my shop at 20 and later founding the Washington Barber College. Through this work, I recognized a significant gap in financial services for underserved communities in Little Rock, Arkansas. This realization led me to establish People Trust Community Loan Fund in 2016, aiming to provide accessible financial resources to those often overlooked by traditional banking systems. My commitment to economic empowerment has been a driving force behind my efforts to bridge financial disparities in disconnected and underserved communities. 

What is one unique aspect about People Trust?  

One unique aspect of People Trust Community Loan Fund is its deep-rooted commitment to providing financial services to underserved communities in Arkansas, particularly those historically excluded from traditional banking. 

How would you describe People Trust to someone new to community development?   

People Trust Community Loan Fund is a mission-driven community development financial institution (CDFI) that provides access to capital for underserved communities, ensuring economic mobility and financial opportunities. Our innovative lending programs support small businesses, first-time homeowners, and individuals who are often overlooked by traditional financial institutions. 

How do you describe People Trust to members of the community you serve?   

People Trust Community Loan Fund is your community financial partner, here to help you build a better future. We provide fair, affordable loans and financial education to individuals, families, and small businesses who may not have access to traditional banks. We believe that everyone deserves financial opportunity.

In the past few years, what project or partnership did you feel had the biggest impact on the community you serve?   

In recent years, People Trust Community Loan Fund has significantly impacted the community through its microloan program, which has empowered local entrepreneurs to overcome financial barriers and achieve their business goals. 

A notable example is Vickie Woodard, CEO of Melosong Properties, Inc., in England, Arkansas. Facing challenges in securing capital from traditional lenders due to the locations of her redevelopment projects, Vickie turned to People Trust. She obtained a $35,000 microloan, enabling her to expand her business and provide affordable housing solutions in underserved areas. Vickie expressed her gratitude, stating, “People Trust came through when other lenders didn’t understand my vision.” 

What’s the biggest opportunity to create greater impact that People Trust is considering?

The biggest opportunity for People Trust Community Loan Fund to expand its impact is scaling access to capital through digital transformation and strategic partnerships. This includes:

• Expanding digital financial services. By integrating mobile banking, digital lending platforms, and fintech partnerships, we can reach more underserved individuals and small businesses, making financial services more accessible, especially in rural and underbanked communities. This includes launching digital loan products for transparency, efficiency, and security, and expanding digital and cryptocurrency education. 
• Scaling capital deployment. Increasing our lending capacity through public-private partnerships, philanthropic investments, and impact-driven funding sources will allow us to serve more entrepreneurs and homeowners who struggle to access traditional loans.
• Strengthening financial literacy and wealth-building programs. Providing personalized financial coaching, credit-building tools, and homeownership education will empower individuals to achieve long-term financial stability and break cycles of poverty.
• Advocacy for policy and economic inclusion. Working with local, state, and national policymakers to push for inclusive financial policies that expand funding and resources for low- and moderate-income communities.

What is the biggest challenge for People Trust in 2025?

The biggest challenge is navigating economic uncertainty and policy shifts. This includes: 

• Regulatory uncertainty. Potential changes in financial regulations around digital assets, CDFI funding, and lending practices may impact capital availability and compliance requirements.
• Financial inclusion in the digital economy. Many underserved communities lack access to digital banking tools, fintech education, and cryptocurrency knowledge, creating a growing wealth gap in the digital economy.
• Economic volatility. Rising interest rates and inflation could make traditional lending more costly, requiring innovative solutions to keep financing affordable.

What is a challenge facing the CDFI industry right now, and how can the industry rise to meet that challenge?

A challenge is access to sustainable capital and evolving regulatory landscape. CDFIs face funding uncertainties, rising interest rates, and shifting federal regulations, making it harder to secure capital for underserved communities. Additionally, digital transformation and fintech disruption require CDFIs to modernize while maintaining their mission-driven approach.

Solutions to the challenge includes:

• Diversify funding sources. Expand access to private capital, impact investors, and fintech partnerships to reduce reliance on government funding.
• Embrace digital finance. Invest in digital lending platforms, blockchain technology, and AI-driven credit models to improve efficiency and accessibility.
• Strengthen advocacy efforts. Work with policymakers to shape regulations thatsupport responsible innovation while maintaining financial inclusion.
• Expand financial literacy and community engagement. Educate borrowers on digital finance, alternative credit models, and wealth-building tools to ensure long-term financial stability.

What advice do you have for people who are interested in learning about community development and the CDFI Industry?

• Educate yourself. Learn about CDFIs, financial inclusion, and economic equity through resources like OFN and the CDFI Fund.
• Gain experience. Volunteer, intern, or attend industry events to connect with professionals and learn firsthand.
• Understand policy and advocacy. Stay informed on legislation impacting financial access and engage with advocacy efforts.
• Explore digital finance and cryptocurrency. Learn how fintech, blockchain, and digital lending are shaping the future of financial inclusion.
• Join the community. Network with CDFI leaders, impact investors, and financial institutions working toward economic equity.

Community development is about creating financial opportunities for underserved communities. Get involved and make an impact!

In one word or phrase, describe your organization’s relationship with OFN. What made you choose that phrase?

“Fuel for Financial Freedom”

Why? People Trust Community Loan Fund and OFN ignite economic opportunity by breaking down financial barriers and empowering underserved communities. Through capital, advocacy, and innovation, OFN fuels our ability to drive real change, build wealth, and create pathways to financial freedom where it’s needed most.

How do you describe OFN to people who do not know us?

OFN is the backbone of financial empowerment for underserved communities. It’s a national network of mission-driven lenders, CDFIs, and financial institutions working to ensure that everyone—regardless of income, background, or zip code—has access to capital and economic opportunity.

Through funding, advocacy, and innovation, OFN helps organizations like People Trust Loan Fund provide affordable loans to small businesses, homeowners, and individuals traditionally excluded from mainstream banking. It’s more than just a network—it’s a catalyst for change in community finance.

Learn more about Arlo and People Trust Community Loan Fund by watching “The Barber of Little Rock” on YouTube, and visit their website.

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Tags: CDFI Leadership, Community Development, Member Highlight, OFN Membership, Small Business