Brightpoint Receives Funding From JPMorgan Chase & Co. To Grow Consumer Loan Program
Brightpoint (previously Community Action of Northeast Indiana or CANI) announced today this is certainly has gotten nearly $1 million in money from JPMorgan Chase & Co. to grow its customer loan system. Brightpoint received this prize included in a $5.1 million grant towards the grouped Community Loan Center Coalition of Texas and Indiana.
вЂњThe reason for this grant is always to invest in an employer-based, small-dollar loan system that may offer an substitute for payday lending,вЂќ reported Brightpoint President/CEO Steve Hoffman. вЂњThanks towards the ample capital from JPMorgan Chase, Brightpoint should be able to help to keep more bucks when you look at the pouches of families within our community.вЂќ
In Indiana, payday lenders cost customers over $70 million in charges yearly.
On the average loan that is 14-day payday loan providers charge 365% APR. About 7% of low-income families in northeast Indiana use payday lenders regularly. However it is maybe perhaps maybe not simply low-income households whom are making use of these solutions. In line with the customer Financial Protection Bureau, the median earnings of payday borrowers is $22,476, but one fourth of most borrowers payday loans East Chicago make $33,876 or maybe more.
вЂњThe challenges dealing with our communities need solutions tailored with 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 which will link them to greater financial possibilities and success.вЂќ
The city Loan Center was created in Texas and it is now expanding into Indiana. The Indiana Association for Community Economic Development (IACED) will work as the coordinator that is statewide 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 customers while permitting companies a chance to give you an invaluable worker advantage.
Companies spend no direct expense to produce this advantage for their workers and it will increase efficiency by reducing worker monetary anxiety and increasing workplace morale.
Town Loan Center at Brightpoint will offer a loan that is low-cost with an inexpensive payback plan that is payroll deducted permitting workers to conquer their economic emergencies. Another advantage of this program is that activity in the loan is supposed to be reported to credit bureaus (something payday lenders donвЂ™t do) assisting to build the credit history associated with the debtor.
Several times loans that are payday useful for things like medical emergencies, automobile repairs, or even get caught through to bills. While supplying low-cost consumer loans of these requirements, Brightpoint may also link borrowers to another solutions the agency provides such as for example assistance signing up for medical insurance, help with energy and kid care expenses, and connecting these with other resources in the neighborhood.
вЂњWe are excited to start providing this service that is new may help relieve economic stress 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()( that is c) nonprofit organization serving significantly more than 35,000 people across northeast Indiana. Through a range that is wide of, Brightpoint helps communities, families, and people eliminate the factors and conditions of poverty. All Brightpoint services are offered without reference to competition, age, color, faith, sex, intimate orientation, impairment, nationwide beginning, ancestry, or status as a veteran.