LEBANON, N.H. – A local man is getting national recognition for a program he set up that provides car loans and credit counseling to low-income people.

Robert Chambers, 61, created Bonnie CLAC almost five years ago after he said he saw too many poor people buying rundown cars or paying high interest rates on car loans.

Reliable transportation and good credit are key for many people trying to work their way out of poverty, he said in an interview Sunday.

His program helps people learn about finances and will guarantee bank loans so they can buy reliable cars. The organization also accepts donated cars and fixes them up. Chambers said clients who are working to pay back debts or clean up their credit can use the cars until they become eligible for a low-interest loan for a new car.

Chambers is one of 15 people around the nation identified as a finalist for what’s called the Purpose Prize, a new award honoring people over age 60 who have set up innovative social programs.

Chambers was nominated by the executive director of the Maine-based Great Bay Foundation, which supports programs like Bonnie CLAC that enhance people’s self-reliance, according to its Web site.

Before launching Bonnie CLAC, Chambers ran computer businesses in Montreal and New York City. He also worked in fundraising and car sales.

“I couldn’t have created this without my varied business background,” he said.

Chambers wins a $10,000 prize and becomes eligible for a $100,000 award if he makes it to the top five.

Civic Ventures in San Francisco launched the award as a way to encourage retirees to use their lifetime of skills for social innovation.

Bonnie CLAC started in Lebanon and has since expanded to Keene, Manchester, Portsmouth and Maine. It also has clients in Vermont, he said.

“It has great potential nationally – this program,” he said.

Chambers said the hardest part was persuading banks to work with him. Many bankers were afraid the Bonnie CLAC clients would default on their loans.

But Chambers says his default rate is well below commercial averages. Of his 740 clients to date, only 17 defaulted and most did not involve large sums of money, he said.

Chambers said his clients must take a financial literacy course before they can qualify for a loan.