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 within the budget that is final
Dear Temporary President and Majority Leader Stewart-Cousins:
The undersigned 65 businesses respectfully request your help for the $25 million appropriation to finance the latest York State Community developing standard bank Fund (NYS CDFI Fund).
In 2007, ny State established a CDFI FundвЂ”based in 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 through the state. Brand brand brand brand New YorkвЂ™s had been the initial state-based CDFI Fund in the nation. Regrettably, the NYS CDFI Fund has yet to get any capital through the state. Help for CDFIs is just a strategy that is sure-fire building strong neighborhood and regional economies and ensuring use of noise and affordable monetary solutions throughout New York 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 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 13per cent of white New Yorkers with this specific reaction. 1 over time, payday lenders as well as other high-cost economic solutions businesses have actually looked for to exploit this space, including by pushing nyc to legalize lending that is usurious.
Ny is certainly one of 16 states, plus Washington, D.C., that effectively forbids payday financing. In states where predatory lending that is payday allowed, lower-income individuals of color constitute a disproportionately big section of borrowers. And older grownups, including Social protection recipients that are prime objectives for payday loan providers, are a particularly fast-growing segment of cash advance borrowers. Notwithstanding litigation that is extensive enforcement actions by the ny 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 economic solutions and making equitable opportunities in low-income and immigrant communities and communities of color through the entire state.
With 82 CDFIs serving every county into the state, nyc has got the 2nd concentration that is highest of CDFIs in the united kingdom. Brand brand brand New YorkвЂ™s CDFIs offer equitable monetary solutions in areas maybe maybe perhaps maybe not offered by main-stream banking institutions, assisting New that is low-income Yorkers savings and credit, and build wide range. In addition they help brand brand New YorkвЂ™s smaller businesses вЂ“ the commercial lifeblood of numerous low-income and immigrant communities and areas of color вЂ“ supplying vital loans, assets, economic solutions, and counseling that is financial.
Community Development Credit Unions (CDCUs), in specific, assist low-income families develop assets by giving cost 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-income communities of color and immigrant communities.
In 2015 alone, 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, as well as others. 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 a lot more than $300 million in direct financing and solutions to New YorkвЂ™s underserved communities.
Strengthening brand brand New YorkвЂ™s CDFIs is a central plank of this NYS Community Equity Agenda, an affirmative platform for advancing economic justice and financial democracy throughout NYSвЂ”and represents a crucial counterweight to current efforts to legalize predatory payday as well as other high-cost financing in nyc.