Brightpoint (previously Community Action of Northeast Indiana or CANI) announced that is has received nearly $1 million in funding from JPMorgan Chase & Co. to expand its consumer loan program today. Brightpoint received this honor included in a $5.1 million grant towards the Community Loan Center Coalition of Texas and Indiana.
вЂњThe function of this grant would be to spend money on an employer-based, small-dollar loan system which will offer a substitute for payday lending,вЂќ reported Brightpoint President/CEO Steve Hoffman. вЂњThanks towards the funding that is generous JPMorgan Chase, Brightpoint should be able to help keep more bucks into the pouches of families within our community.вЂќ
In Indiana, payday lenders cost customers over $70 million in charges yearly.
On the average 14-day loan, payday lenders charge 365% APR. About 7% of low-income families in northeast Indiana use payday lenders regularly. However it is perhaps perhaps not simply low-income households whom are utilizing these services. In line with the customer Financial Protection Bureau, the median earnings of payday borrowers is $22,476, but 25 % of most borrowers make $33,876 or maybe more.
вЂњThe challenges dealing with our communities need solutions tailored for their needs that are specificвЂќ said Jim Cook, unit supervisor for ChaseвЂ™s Commercial Bank. вЂњBrightpoint is developing strategies that are innovative the requirements of Fort Wayne area families that may link them to greater financial possibilities and success.вЂќ
The city Loan Center originated in Texas and it is now expanding into Indiana. The Indiana Association for Community Economic Development (IACED) will work as the statewide coordinator for the city Loan Center franchising in Indiana. Brightpoint will provide northeast Indiana while HomesteadCS will provide the Lafayette market.
Community Loan Centers provide affordable loans to consumers while enabling companies a chance to provide an employee benefit that is valuable. Companies spend no direct expense to supply this advantage for their workers and it may increase efficiency by reducing worker monetary anxiety and workplace morale that is increasing.
Town Loan Center at Brightpoint will offer you a low-cost loan item with an affordable payback plan that is payroll deducted permitting workers to conquer their monetary emergencies. Another advantageous asset of this program is that activity in the loan would be reported to credit bureaus (something payday lenders donвЂ™t do) assisting to build the credit history regarding the debtor.
Often times loans that are payday employed for specific things like medical emergencies, vehicle repairs, or even get through to bills.
The agency provides such as help enrolling in health insurance, assistance with utility and child care costs, and connecting them with other resources in the community while providing low-cost consumer loans for these needs, Brightpoint will also connect borrowers to the other services.
вЂњWe are excited to start providing this service that is new may help relieve economic anxiety to get more families and produce a brighter future for the community,вЂќ concluded Mr. Hoffman. The Consumer Loan Center at Brightpoint is planned to start loans that are making January 2016.
About Brightpoint Brightpoint is just a private, 501(c)(3) nonprofit organization serving significantly more than 35,000 individuals across northeast Indiana. By way of a wide selection of programs, Brightpoint helps communities, families, and folks get rid of the reasons and conditions of poverty. All Brightpoint solutions are given without reference to competition, age, color, faith, intercourse, sexual orientation, impairment, nationwide beginning, ancestry, or status as being a veteran.