Honorable Andrea Stewart Cousins Temporary President and Majority Leader, nyc State Senate 188 State Street place 907, Legislative Office Building Albany, NY 12247
The undersigned 65 businesses respectfully request your help for a $25 million appropriation to finance the latest York State Community developing standard bank Fund (NYS CDFI Fund) payday loans online in Florida. In 2007, ny State established a CDFI Fund on the basis of the effective CDFI that is federal Fund offer funds and opportunities to New York CDFIs, which provide New Yorkers and small enterprises in economically troubled communities through the state. Brand brand brand New YorkвЂ™s had been the very first state based CDFI Fund in the united states. Regrettably, the NYS CDFI Fund has yet to get any money through the state. Help for CDFIs is just a sure fire strategy for building strong regional and local economies and ensuring access to noise and affordable economic services throughout ny State.
As you understand, traditional banking institutions aren’t adequately meeting the monetary solutions requirements of New YorkвЂ™s income that is low immigrant communities and communities of color. Whenever asked exactly just just how banks that are interested in serving their households, roughly one quarter of black colored and Latino New Yorkers respond, вЂNot at all,вЂ™ when compared with simply 13per cent of white New Yorkers with this particular reaction. 1 over time, payday lenders as well as other high expense monetary solutions organizations have actually looked for to exploit this space, including by pushing New York to legalize usurious financing.
Ny is certainly one of 16 states, plus Washington, D.C., that effectively forbids payday financing. In states where predatory payday financing is allowed, low income folks of color make up a disproportionately big section of borrowers. And older grownups, including Social protection recipients who are prime objectives for payday loan providers, are a particularly fast growing section of pay day loan borrowers. Notwithstanding extensive litigation and enforcement actions because of the ny State Attorney General and Department of Financial solutions to split straight straight down on illegal payday lending and despite vehement, ongoing pushback by work, civil legal rights, community, faith based, and consumer teams the industry has persisted with its flagrant work.
Meanwhile, brand brand New YorkвЂ™s CDFIs, including Community Development Credit Unions (CDCUs), are providing affordable monetary solutions and making equitable opportunities in low earnings and immigrant communities and communities of color through the state.
With 82 CDFIs serving every county when you look at the state, nyc gets the 2nd concentration that is highest of CDFIs in the united states. brand New YorkвЂ™s CDFIs offer equitable monetary solutions in areas perhaps perhaps not offered by conventional banking institutions, assisting low income New Yorkers establish savings and credit, and build wealth. In addition they help brand New YorkвЂ™s small enterprises the financial lifeblood of numerous low earnings and immigrant areas and areas of color supplying vital loans, opportunities, economic solutions, and counseling that is financial.
Community Development Credit Unions (CDCUs), in specific, assist income that is low build assets by giving cost savings cars, credit rating, and house mortgages. Because CDCUs are community based economic cooperatives, they add to neighborhood economic security and protect cash and resources when you look at the communities they provide, particularly low earnings communities of color and immigrant communities.
In 2015 alone, brand New York CDFIs offered $2.5 billion in funding to significantly more than 100,000 New Yorkers, including to people, small businesses, affordable housing designers, among others. CDFIs offer tremendous bang for money: Because CDFIs leverage every general public dollar with 12 extra bucks off their sources, >the proposed $25 million spending plan allocation would leverage significantly more than $300 million in direct financing and solutions to New YorkвЂ™s underserved communities. Strengthening brand brand New YorkвЂ™s CDFIs is just a main plank associated with NYS Community Equity Agenda, a platform that is affirmative advancing economic justice and financial democracy throughout NYS and represents a crucial counterweight to present efforts to legalize predatory payday as well as other high expense financing in nyc.
For the reasons stated above, we strongly urge one to support a $25 million allocation into the FY2020 budget to your NYS CDFI Fund.Thank you for the consideration.
AARP Adirondack North nation Association Align ANHD Banana Kelly Community Improvement Association The Ebony Institute Brooklyn Cooperative Federal Credit Union Brooklyn Legal Services Corporation A Brooklyn motion Center BWICA Education Fund, Inc. Carroll Gardens Association The Center for Family lifestyle Center for NYC Neighborhoods Chhaya CDC correspondence employees of America, District One Community developing venture at Urban Justice Center Cooperation Buffalo Cooperative Federal Cypress Hills Local Development Corporation Erasmus Neighborhood Federation, Inc. Faith in ny The Financial Clinic Fiscal Policy Institute Fordham Law class Feerick Center for Social Justice Genesee Co op FCU good old fashioned Lower East Side (GOLES) Habitat for Humanity nyc Habitat for Humanity new york Community Fund Housing and Family Services of better ny, Inc. Inclusiv (previously The nationwide Federation of Community Development Credit Unions) Interfaith target Corporate Responsibility JASA/Legal Services for older people in Queens Latino Justice PRLDEF The Legal help Society LISC NYC longer Island Housing Services, Inc. longer Island Progressive Coalition Lower East Side PeopleвЂ™s FCU Mobilization for Justice, Inc. Neighborhood Trust Financial Partners brand brand New Economy venture new york Anti Violence venture new york system of Worker Cooperatives New York Communities for Change ny StateWide Senior Action Council New Yorkers for accountable Lending NY Working Families NYC Employment and Training Coalition NYPIRG Pan African Community Development Initiative Partnership for the Public Good DRIVE Buffalo Restaurant Opportunities Center of the latest York Southern Bronx Unite Teamsters Local 237 Tompkins County WorkersвЂ™ Center Ujima Co., Inc. Unemployment Action Center Urban Homesteading Assistance Board The WASH venture Westchester Household Opportunities, Inc. Western Nyc Law Center The Working World
cc: The Honorable Liz Krueger, Seat, NYS Senate Finance Committee The Honorable Anna Kaplan, Seat, NYS Senate Commerce, Economic Developing, and Small Company Committee The Honorable James Sanders, Jr., Chair, NYS Senate Banks Committee The Honorable Kevin Thomas, Seat, NYS Senate Customer Protection Committee