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 companies respectfully request your help for the $25 million appropriation to invest in the latest York State Community developing standard bank Fund (NYS CDFI Fund). In 2007, nyc 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 smaller businesses in economically troubled communities through the state. Brand brand New YorkвЂ™s had been the very first state based CDFI Fund in the united states. Unfortuitously, the NYS CDFI Fund has yet to get any money through the state. Help for CDFIs is just a for sure strategy for building strong neighborhood and local economies and ensuring use of noise and affordable financial solutions throughout nyc State.
While you understand, traditional banking institutions are not acceptably meeting the economic solutions requirements of New YorkвЂ™s low income and immigrant communities and communities of color. Whenever asked exactly exactly just how banks that are interested in serving their households, around one quarter of black colored and Latino New Yorkers respond, вЂNot at all,вЂ™ when compared with just 13per cent of white New Yorkers with this specific reaction. 1 over time, payday lenders along with other high price monetary solutions organizations have actually looked for to exploit this space, including by pushing ny to legalize lending that is usurious.
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, low income individuals of color constitute a disproportionately big part of borrowers. And older grownups, including Social protection 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 because of the ny State Attorney General and Department of Financial solutions to crack straight straight down on unlawful 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 supplying affordable monetary solutions and making equitable assets in low income and immigrant communities and communities of color through the state.
With 82 CDFIs serving every county within the state, ny gets the 2nd highest concentration of CDFIs in the nation. Brand New YorkвЂ™s CDFIs offer equitable monetary solutions in areas maybe perhaps not offered by main-stream banking institutions, assisting low earnings New Yorkers establish savings and credit, and build wide range. In addition they help brand New YorkвЂ™s small businesses the commercial lifeblood of several low earnings and immigrant communities and areas of color supplying vital loans, assets, economic solutions, and monetary guidance.
Community Development Credit Unions (CDCUs), in specific, assist low income families develop assets by giving savings cars, credit rating, and house mortgages. Because CDCUs are community based monetary cooperatives, they add to neighborhood security that is economic protect cash and resources within the communities they provide, 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 easy payday loans Alabama online more than 100,000 New Yorkers, including to people, small businesses, affordable housing developers, among others. CDFIs offer 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 for the NYS Community Equity Agenda, a platform that is affirmative advancing monetary justice and financial democracy throughout NYS and represents a vital counterweight to present 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 into the FY2020 budget into 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 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 solutions, Inc. Long Island Progressive Coalition Lower East Side PeopleвЂ™s FCU Mobilization for Justice, Inc. Neighborhood Trust Financial Partners brand New Economy venture new york Anti Violence venture New York City system 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 when it comes to Public Good DRIVE Buffalo Restaurant Opportunities Center of New York South 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 Nyc 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, Seat, NYS Senate Consumer Protection Committee