The undersigned 65 companies respectfully request your help for the $25 million appropriation

Monday, December 28, 2020

The undersigned 65 companies respectfully request your help for the $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 the $25 million appropriation to finance this new York State Community developing standard bank Fund (NYS CDFI Fund). In 2007, ny State established a CDFI Fund in line with the effective CDFI that is federal Fund offer funds and investments to New York CDFIs, which serve New Yorkers and smaller businesses in economically troubled communities through the entire state. Brand brand New York’s ended up being the very first state based CDFI Fund in the united kingdom. Regrettably, the NYS CDFI Fund has yet to get any financing through the state. Help for CDFIs is a for sure strategy for building strong neighborhood and local economies and ensuring use of sound and affordable economic solutions throughout ny State.

While you understand, traditional banking institutions aren’t acceptably fulfilling the monetary solutions requirements of New York’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, ‘Not at all,’ compared to simply 13% of white New Yorkers with this specific reaction. 1 over time, payday lenders as well as other high expense economic solutions businesses have desired to exploit this space, including by pushing ny to legalize usurious financing.

New York is certainly one of 16 states, plus Washington, D.C., that effectively prohibits payday financing. In states where predatory payday financing is permitted, low income folks of color constitute a disproportionately big portion of borrowers. And older grownups, including Social protection recipients who will be prime goals for payday loan providers, are a particularly fast growing section of pay day loan borrowers. Notwithstanding extensive litigation and enforcement actions by the nyc State Attorney General and Department of Financial solutions to split straight straight down on unlawful payday lending and despite vehement, ongoing pushback by labor, civil liberties, community, faith based, and customer teams the industry has persisted in its flagrant effort.

Meanwhile, brand New York’s CDFIs, including Community Development Credit Unions (CDCUs), are supplying affordable monetary solutions and making equitable opportunities in low earnings and immigrant communities and communities of color through the state.

With 82 CDFIs serving every county within the state, nyc has got the 2nd concentration that is highest of CDFIs in the united kingdom. brand New York’s CDFIs offer equitable economic solutions in areas maybe perhaps perhaps not offered by main-stream banking institutions, helping low earnings New Yorkers establish savings and credit, and build wide range. Additionally they help brand New York’s smaller businesses the commercial lifeblood of several low earnings and immigrant communities and areas of color providing vital loans, opportunities, economic solutions, and economic guidance.

Community Development Credit Unions (CDCUs), in particular, assist low income families develop assets by giving cost cost cost savings cars, credit, and house mortgages. Because CDCUs are community based monetary cooperatives, they add to neighborhood economic security and protect cash and resources within the communities they provide, specially low earnings 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, among others. CDFIs offer tremendous bang for money: Because CDFIs leverage every dollar that is public 12 additional bucks off their sources, >the proposed $25 million budget allocation would leverage significantly more than $300 million in direct financing and solutions to New York’s underserved communities. Strengthening brand brand brand New York’s CDFIs is really a main plank of this NYS Community Equity Agenda, a platform that is affirmative advancing economic justice and financial democracy throughout NYS and represents a crucial counterweight to current efforts to legalize predatory payday as well as other high price lending in New York.

For all your reasons stated above, we strongly urge one to support a $25 million allocation into 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 Black 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 lifestyle 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 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 nyc Habitat for Humanity new york Community Fund Housing and Family Services of better ny, Inc. Inclusiv (previously The National 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. longer Island Progressive Coalition Lower East Side People’s FCU Mobilization for Justice, Inc. Neighborhood Trust Financial Partners brand New Economy venture 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 Responsible Lending NY performing 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 South Bronx Unite Teamsters Local 237 Tompkins County Workers’ Center Ujima Co., Inc. Jobless Action Center Urban Homesteading Assistance Board The WASH Venture Westchester Household Opportunities, Inc. Western New York 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 Business Committee The Honorable James Sanders, Jr., Seat, NYS Senate Banks Committee The Honorable Kevin Thomas, Seat, NYS Senate Consumer Protection Committee