Honorable Andrea Stewart Cousins Temporary President and Majority Leader, nyc State Senate 188 State Street area 907, Legislative Office Building Albany, NY 12247
The undersigned 65 companies respectfully request your support for the $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 effective federal CDFI Fund to offer funds and assets to New York CDFIs, which provide New Yorkers and smaller businesses in economically distressed communities through the entire state. brand New YorkвЂ™s had been the very first state based CDFI Fund in the nation. Regrettably, the NYS CDFI Fund has yet to get any money through the state. Help for CDFIs is a fire that is sure for building strong regional and regional economies and ensuring use of sound and affordable monetary solutions throughout nyc State.
While you understand, traditional banking institutions aren’t acceptably fulfilling the monetary services needs of New YorkвЂ™s income that is low immigrant communities and communities of color. Whenever asked just just how banks that are interested in serving their households, about 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 particular reaction. 1 over time, payday lenders as well as other high price monetary 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 lending that is payday. In states where predatory payday financing is allowed, low income folks of color make up a disproportionately big part 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 pay day loan borrowers. Notwithstanding extensive litigation and enforcement actions because of the ny State Attorney General and Department of Financial solutions to split straight straight down on unlawful payday lending and despite vehement, ongoing pushback by work, civil legal rights, community, faith based, and customer teams the industry has persisted with its flagrant work.
Meanwhile, brand New YorkвЂ™s CDFIs, including Community Development Credit Unions (CDCUs), are providing affordable economic 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 kingdom. New YorkвЂ™s CDFIs offer equitable financial solutions in communities maybe maybe not offered by main-stream banking institutions, assisting income that is low Yorkers establish savings and credit, and build wide range. In addition they help brand brand New YorkвЂ™s small enterprises the financial lifeblood of numerous low earnings and immigrant communities and communities of color supplying vital loans, investments, 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, and house mortgages. Because CDCUs are community based monetary cooperatives, they add to neighborhood economic security and preserve cash and resources within the communities they provide, particularly low earnings communities of color and immigrant communities.
In 2015 alone, brand New York CDFIs supplied $2.5 billion in funding to significantly more than 100,000 New Yorkers, including to people, small businesses, affordable housing designers, yet others. CDFIs offer tremendous bang for dollar: 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 New YorkвЂ™s CDFIs is a main plank associated with NYS Community Equity Agenda, a platform that is affirmative advancing economic justice and financial democracy throughout NYS and represents a vital counterweight to present efforts to legalize predatory payday as well as other high expense financing in nyc.
For the good reasons stated above, we strongly urge one to support a $25 million allocation when you look at the FY2020 budget to your 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 lifetime 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 New York 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 nyc Habitat for Humanity new york Community Fund Housing and Family Services of better nyc, 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 Project new york Anti Violence venture new york 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 for the 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 payday loans online in Ohio 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