METRO ATLANTA – Have you ever wondered how some immigrants who are new to this country get enough financial support to start a business in your community?
For many of them, because they can secure funding through a secret “money club”.
Channel 2’s Sophia Choi spoke to several local immigrant families, all of whom are familiar with the tradition of the Geh.
While you usually need to have a credit history in order to get a loan with a traditional bank, many Asians, especially Koreans who are new to the country, use a go to start their “American dream”.
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Choi spoke to former immigration attorney Bonnie Youn, who spoke about how her mother was at a walk, something she is also personally familiar with.
Youn explained that a go is made up of a group of trusted friends, family, and even church members who come together to help each other out with funding.
“To start a business, usually a small business. When you get a group, each person agrees to deposit a certain amount, and it is basically each person in the group who take the pot, ”said Youn. “And so you have financing for which you could not raise capital.”
The monthly payment amount is usually determined by the person who started it.
“You can see tens of thousands of dollars as monthly needs that go into going,” said Youn.
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The person who gets the money gets it interest-free with no taxes. It’s something that former federal attorney BJay Pak thinks is perfectly legal.
“If you think about it, you’re ready, you’re just borrowing some money,” Pak said.
Pak told Choi that his family also attended a go. He said helping others to be successful is the main goal. But he adds that there is another very big draw.
“It’s an opportunity to meet, share stories and bring everyone together. I think this would work pretty well for communities that are having a harder time getting traditional funding, ”Pak said.
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But according to Youn, it’s not all fun. Sometimes people withdraw with the money.
“Often times people tried to sue that. But when you have nothing on paper and it’s like a handshake, it’s very difficult. It is the idea of shame in the community that would have kept you, and certainly all members of your family, from being affected by it, that would have kept you from breaking this, ”Youn said.
Choi, Pak and Youn all say the Asian community is still doing well, but it is less happening with the second generation, those who grew up here in America.
This generation usually has a certain credit history and often goes the more traditional route for credit through banks.
