The undersigned 65 businesses respectfully request your help for a $25 million appropriation
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 companies respectfully request your help for a $25 million appropriation to finance the newest York State Community Development standard bank Fund (NYS CDFI Fund). In 2007, nyc State established a CDFI Fund in line with the effective federal CDFI Fund to offer funds and opportunities to New York CDFIs, which provide New Yorkers and smaller businesses in economically troubled communities through the state. brand New YorkвЂ™s had been the state that is first CDFI Fund in the country. Unfortuitously, the NYS CDFI Fund has yet to get any financing through the state. Help for CDFIs is really a for sure strategy for building strong neighborhood and local economies and ensuring use of noise and affordable economic solutions throughout nyc State.
While you understand, traditional banks aren’t acceptably fulfilling the monetary solutions requirements of New YorkвЂ™s low income and immigrant communities and communities of color. When asked just 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 13per cent of white New Yorkers with this particular reaction. 1 over time, payday lenders as well as other high expense economic solutions businesses have actually tried to exploit this space, including by pushing ny to legalize usurious financing.
Nyc 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 folks of color constitute a disproportionately big portion of borrowers.