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 a $25 million appropriation to finance this new York State Community developing standard bank Fund (NYS CDFI Fund). In 2007, nyc State established a CDFI Fund in line with the successful CDFI that is federal Fund offer funds and assets to New York CDFIs, which provide New Yorkers and small enterprises in economically troubled communities for the state. 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 financing from the state. Help for CDFIs is really a for sure strategy for building strong neighborhood and local economies and ensuring access to noise and affordable monetary solutions throughout ny State.
While you understand, traditional banking institutions aren’t acceptably fulfilling the economic solutions requirements of New YorkвЂ™s income that is low immigrant communities and communities of color. Whenever asked just exactly exactly how interested banking institutions are in serving their households, around 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 response. 1 through the years, payday lenders along with other high expense economic solutions organizations have actually desired to exploit this space, including by pushing ny 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, low income individuals of color constitute a disproportionately big section of borrowers. And older grownups, including Social safety recipients who will be prime objectives for payday loan providers, are a particularly fast growing section of cash advance borrowers. Notwithstanding extensive litigation and enforcement actions because of the ny State Attorney General and Department of Financial solutions to split straight down on unlawful payday lending and despite vehement, ongoing pushback by labor, civil rights, community, faith based, and customer teams the industry has persisted in its flagrant work.
Meanwhile, brand New YorkвЂ™s CDFIs, including Community Development Credit Unions (CDCUs), are supplying affordable monetary solutions and making equitable assets in low earnings and immigrant communities and communities of color through the entire state.
With 82 CDFIs serving every county into the state, ny gets the 2nd greatest concentration of CDFIs in the united states. Brand brand brand New YorkвЂ™s CDFIs offer equitable monetary solutions in areas snap the site maybe not offered by conventional banks, assisting income that is low Yorkers establish savings and credit, and build wide range. Additionally they help brand brand New YorkвЂ™s small enterprises the commercial lifeblood of several low income and immigrant areas and neighborhoods of color supplying vital loans, opportunities, monetary solutions, and economic guidance.
Community Development Credit Unions (CDCUs), in specific, assist low income families develop assets by giving cost cost cost savings automobiles, credit rating, and house mortgages. Because CDCUs are community based economic cooperatives, they add to neighborhood security that is economic protect cash and resources within the communities they provide, particularly low earnings 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 businesses, affordable housing designers, as well as 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 lending and solutions to New YorkвЂ™s underserved communities. Strengthening brand brand brand New YorkвЂ™s CDFIs is really a central plank for the NYS Community Equity Agenda, a platform that is affirmative advancing monetary justice and financial democracy throughout NYS and represents a crucial counterweight to present efforts to legalize predatory payday as well as other high price lending in nyc.
For all your good reasons stated above, we strongly urge you to definitely support a $25 million allocation when you look at 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 Movement Center BWICA Education Fund, Inc. Carroll Gardens Association The Center for Family Life Center for NYC Neighborhoods Chhaya CDC Communication 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 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 brand New Economy venture new york Anti Violence venture new york Network of Worker Cooperatives brand New York Communities for Change nyc StateWide Senior Action Council New Yorkers for Responsible Lending NY Working 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 the latest York Southern Bronx Unite Teamsters Local 237 Tompkins County WorkersвЂ™ Center Ujima Co., Inc. Jobless Action Center Urban Homesteading Assistance Board The WASH Venture Westchester Household 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 Customer Protection Committee