Honorable Andrea Stewart-Cousins Temporary President and Majority Leader, nyc State Senate 188 State Street place 907, Legislative Office Building Albany, NY 12247
Re: demand to guide $25 million for the NYS CDFI Fund into the last budget
Dear Temporary President and Majority Leader Stewart-Cousins:
The undersigned 65 companies respectfully request your help for the $25 million appropriation to finance this new York State Community developing standard bank Fund (NYS CDFI Fund).
In 2007, ny State established a CDFI FundвЂ”based from the effective federal CDFI FundвЂ”to offer funds and opportunities to New York CDFIs, which provide New Yorkers and smaller businesses in economically-distressed communities for the state. Brand brand brand brand New YorkвЂ™s ended up being the very first CDFI that is state-based Fund the nation. Unfortuitously, the NYS CDFI Fund has yet to get any financing through the state. Help for CDFIs is just a strategy that is sure-fire building strong regional and local economies and ensuring use of noise and affordable monetary solutions throughout ny State.
While you understand, traditional banking institutions aren’t acceptably fulfilling the monetary solutions requirements of New YorkвЂ™s low-income and immigrant communities and communities of color. Whenever asked exactly just how banks that are interested in serving their households, more or less one-quarter of black colored and Latino New Yorkers respond, вЂNot at all,вЂ™ when compared with simply 13% of white New Yorkers with this particular reaction. 1 through the years, payday lenders as well as other high-cost economic solutions businesses have actually wanted to exploit this space, including by pushing ny to legalize usurious financing.
Ny is regarded as 16 states, plus Washington, D.C., that effectively forbids lending that is payday. In states where predatory payday financing is allowed, lower-income individuals of color constitute a disproportionately big section of borrowers. And older grownups, including Social safety recipients that are prime goals for payday loan providers, are a particularly fast-growing section of pay day loan borrowers. Notwithstanding litigation that is extensive enforcement actions by the nyc State Attorney General and Department of Financial Services to split straight straight straight down on unlawful payday lending вЂ“ and despite vehement, ongoing pushback by work, civil liberties, community, faith-based, and customer teams вЂ“ the industry has persisted in its flagrant work.
Meanwhile, brand brand New YorkвЂ™s CDFIs, including Community Development Credit Unions (CDCUs), are supplying affordable monetary solutions and making equitable opportunities in low-income and immigrant communities and communities of color through the state.
With 82 CDFIs serving every county into the state, ny gets the 2nd concentration that is highest of CDFIs in the united kingdom. brand brand New YorkвЂ™s CDFIs provide equitable monetary solutions in areas perhaps maybe maybe maybe not offered by main-stream banking institutions, assisting New that is low-income Yorkers savings and credit, and build wide range. Additionally they help brand New YorkвЂ™s smaller businesses вЂ“ the financial lifeblood of numerous low-income and immigrant communities and areas of color вЂ“ supplying vital loans, assets, monetary solutions, and counseling that is financial.
Community Development Credit Unions (CDCUs), in specific, assist families that are low-income assets by giving cost cost savings cars, credit rating, and house mortgages. Because CDCUs are community-based economic cooperatives, they add to neighborhood security that is economic protect cash and resources when you look at the communities they provide, specially low-income communities of color and immigrant communities.
In 2015 alone, brand brand New York CDFIs offered $2.5 billion in funding to a lot more than 100,000 New Yorkers, including to people, small businesses, affordable housing designers, yet others online payday loans Texas. CDFIs provide tremendous bang-for-buck: 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 really a main plank associated with the NYS Community Equity Agenda, an affirmative platform for advancing economic justice and financial democracy throughout NYSвЂ”and represents a crucial counterweight to present efforts to legalize predatory payday as well as other high-cost financing in ny.