Honorable Andrea Stewart Cousins Temporary President and Majority Leader, ny State Senate 188 State Street area 907, Legislative Office Building Albany, NY 12247
The undersigned 65 businesses respectfully request your help for the $25 million appropriation to finance this new York State Community developing lender Fund (NYS CDFI Fund). In 2007, nyc State established a CDFI Fund in line with the effective federal CDFI Fund to offer funds and assets to New York CDFIs, which provide New Yorkers and smaller businesses in economically troubled communities through the state. brand brand New YorkвЂ™s ended up being the very first state based CDFI Fund in the united states. Unfortuitously, the NYS CDFI Fund has yet to get any financing through the state. Help for CDFIs is a for sure strategy for building strong regional and local economies and ensuring use of sound and affordable economic solutions throughout ny State.
While you understand, traditional banks aren’t acceptably fulfilling the monetary solutions needs of New YorkвЂ™s low earnings and immigrant communities and communities of color. Whenever asked exactly just exactly 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 over time, payday lenders as well as other high price monetary solutions businesses have actually wanted to exploit this space, including by pressing ny to legalize usurious financing.
Ny is certainly one of 16 states, plus Washington, D.C., that effectively forbids lending that is payday. In states where predatory payday financing is allowed, low income individuals of color constitute a disproportionately big part of borrowers. And older grownups, including Social safety recipients who will be prime goals for payday loan providers, are a particularly fast growing section of pay day loan borrowers. Notwithstanding litigation that is extensive enforcement actions because of the nyc State Attorney General and Department of Financial Services to split straight down on unlawful payday lending and despite vehement, ongoing pushback by work, civil liberties, community, faith based, and customer groups the industry has persisted in its flagrant work.
Meanwhile, brand New YorkвЂ™s CDFIs, including Community Development Credit Unions (CDCUs), are supplying affordable economic solutions and making equitable opportunities in low earnings and immigrant communities and communities of color through the entire state.
With 82 CDFIs serving every county when you look at the state, nyc has got the 2nd greatest concentration of CDFIs in the united kingdom. Brand online payday NV New YorkвЂ™s CDFIs offer equitable monetary solutions in communities perhaps maybe not offered by main-stream banking institutions, assisting income that is low Yorkers establish savings and credit, and build wide range. In addition they help New YorkвЂ™s small enterprises the commercial lifeblood of several low earnings and immigrant neighborhoods and communities of color supplying vital loans, investments, monetary solutions, and counseling that is financial.
Community Development Credit Unions (CDCUs), in specific, assist income that is low develop assets by giving cost savings automobiles, credit rating, and house mortgages. Because CDCUs are community based economic cooperatives, they add to neighborhood economic security and protect money and resources when you look at the communities they serve, especially low income communities of color and immigrant communities.
In 2015 alone, brand brand New York CDFIs supplied $2.5 billion in funding to a lot more than 100,000 New Yorkers, including to people, small business owners, affordable housing designers, as well as others. CDFIs offer tremendous bang for money: Because CDFIs leverage every dollar that is public 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 a main plank associated with the NYS Community Equity Agenda, a platform that is affirmative advancing monetary justice and financial democracy throughout NYS and represents a vital counterweight to current efforts to legalize predatory payday as well as other high price financing in ny.
For the reasons stated above, we strongly urge you to definitely help a $25 million allocation when you look at the FY2020 budget towards the 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 lifetime 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 personal Justice Genesee Co op FCU good old fashioned Lower East Side (GOLES) Habitat for Humanity new york Habitat for Humanity new york Community Fund Housing and Family Services of Greater nyc, 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 nyc Anti Violence Project new york Network of Worker Cooperatives brand brand New York Communities for Change ny StateWide Senior Action Council New Yorkers for accountable Lending NY performing Families NYC Employment and Training Coalition NYPIRG Pan African Community developing Initiative Partnership for the Public Good PUSH 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 Residential Opportunities, Inc. Western Ny Law Center The Performing 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., Seat, NYS Senate Banks Committee The Honorable Kevin Thomas, Chair, NYS Senate Customer Protection Committee