In 2020, Social Finance began partnering with American Diesel Training Centers (ADTC), a diesel technician training program that prepares learners for careers in the growing transportation industry, on a Career Impact Bond. The investment enables previously unemployed or underemployed learners to enroll in ADTC’s hands-on, five-week training program at no upfront cost and receive supportive services to help them succeed during training and into their new careers.
From the beginning, the ADTC Career Impact Bond has been built on a student-friendly financing model with downside protection, meaning participants only pay for their training if they complete the program and find well-paying jobs. The first cohorts of the program also contained a number of employer-backed students, whose companies agreed to cover their monthly payments as long as they remained in their roles.
Top industry employers quickly began to recognize the quality of the program’s graduates, and employer sponsorship became more and more common. Today, 83% of ADTC Career Impact Bond graduates in our current investment are employer-backed. This model benefits graduates, who begin new careers without the burden of student debt, and employers—including companies like AIM Transportation, Green for Life, and Penn Power Group—who access a diverse, skilled talent pool amid severe labor shortages; boost retention; and reduce hiring costs.
This arrangement is a no-brainer, if within a year, you’ve got a productive technician. One of our techs will generate between $15,000-20,000 a month in gross profit. A $10,000 tuition bill for an employee that’s loyal, and we can develop with our culture over the years, is definitely worth it.
President and CEO, National Fleet Management (an ADTC employer partner)
By partnering with American Diesel and Social Finance, we’ve been able to grow our workforce more quickly than we could on our own. Sponsoring the training of students that we hire has given us a huge lift. They come to us with excitement because they don’t bear student debt and know they will get the wraparound attention to develop and become successful employees for a long time to come.
Vice President, Fleet Services, Penn Power Group (an ADTC employer partner)