The Career Impact Bond is a student-friendly model for financing job training that’s designed to help people facing barriers achieve economic mobility. Launched in 2020, Social Finance’s Career Impact Bond with Alchemy Code Lab aims to serve 300 students over three years. Alchemy’s 25-week, full-time online training program prepares students for mid-level software engineering jobs with employers such as Nike, Kroger, and Cambia Health.
Alchemy was founded in 2016 to help students access career pathways in the software development industry. The program has built a strong community of current and former students, instructors, community groups, and employer partners, which has enabled its success in attracting, supporting, and successfully placing students in mid-level software developer positions.
The Alchemy Career Impact Bond eliminates financing barriers for students by covering tuition and, in some cases, providing financing for living expenses. This increases access to software development careers for those who have traditionally been locked out. The program also aims to increase diversity in the technology sector, particularly for people of color, women, and LGBTQIA+ individuals.
Project Goals
Improve career training access: Expand access to industry-recognized software development training and wraparound support services, including financing living expenses, so that people facing barriers to education can build careers as software engineers.
Support measurable career advancement: Help students develop the skills they need to pursue and achieve measurable career advancement in the software development industry.
Catalyze wider economic mobility: Take a strong step toward catalyzing economic mobility at scale by transforming education for people who face barriers to education and employment.
How It Works
Investors
Provide funding to expand Alchemy’s programming and cover students’ tuition.
Alchemy Code Lab
Provides training and wraparound support services to students.
Students
If their salary exceeds $50k, repay 9.5% of their monthly income until they reach the payment cap
Project Partners
- Alchemy Code Lab is providing the training for participants.
- Social Finance is coordinating the project.
- The UP Fund financed the project.
- Vemo Education is managing student repayment.
Project Supporters
- Wilmington Trust serves as fiscal agent and custodian for this project.
- Chapman and Cutler serves as outside legal counsel to Social Finance for the UP Fund.
In the News
- “Alchemy Code Lab snags $5.8 million for tuition financing program,” Portland Business Journal
- “A Conversation with Devon, an Alchemy Code Lab Graduate using the Career Impact Bond,” Social Finance