Honorable Andrea Stewart-Cousins Temporary President and Majority Leader, ny State Senate 188 State Street area 907, Legislative Office Building Albany, NY 12247
Re: demand to guide $25 million for the NYS CDFI Fund within the last spending plan
Dear Temporary President and Majority Leader Stewart-Cousins:
The undersigned 65 companies respectfully request your help for a $25 million appropriation to invest in the latest York State Community developing standard bank Fund (NYS CDFI Fund).
In 2007, ny State established a CDFI FundвЂ”based in the effective CDFI that is federal FundвЂ”to funds and assets to New York CDFIs, which provide New Yorkers and small enterprises in economically-distressed communities for the state. Brand brand brand New YorkвЂ™s ended up being the initial state-based CDFI Fund in the nation. Unfortuitously, the NYS CDFI Fund has yet to get their website any financing through the state. Help for CDFIs is really a strategy that is sure-fire building strong neighborhood and local economies and ensuring use of noise and affordable monetary solutions throughout ny State.
As 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. 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 specific reaction. 1 over time, payday lenders along with other high-cost economic solutions organizations have actually tried to exploit this space, including by pushing nyc 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, 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 section of pay day loan borrowers. Notwithstanding litigation that is extensive enforcement actions because of the nyc State Attorney General and Department of Financial solutions to split 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 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 opportunities in low-income and immigrant communities and communities of color through the entire state.
With 82 CDFIs serving every county into the state, ny has got the 2nd greatest concentration of CDFIs in the united kingdom. Brand brand New YorkвЂ™s CDFIs offer equitable economic solutions in neighborhoods maybe perhaps not offered by conventional banking institutions, assisting New that is low-income Yorkers savings and credit, and build wide range. Additionally they help brand brand brand New YorkвЂ™s smaller businesses вЂ“ the commercial lifeblood of several low-income and immigrant communities and areas of color вЂ“ supplying vital loans, opportunities, economic solutions, and economic guidance.
Community Development Credit Unions (CDCUs), in specific, assist low-income families develop assets by giving cost savings automobiles, credit rating, and house mortgages. Because CDCUs are community-based monetary cooperatives, they add to neighborhood security that is economic protect cash and resources when you look at the communities they provide, specially low-income communities of color and immigrant communities.
In 2015 alone, brand New York CDFIs offered $2.5 billion in funding to significantly more than 100,000 New Yorkers, including to people, small businesses, affordable housing designers, yet others. CDFIs provide tremendous bang-for-buck: 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 central plank regarding the 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.