Brightpoint Receives Funding From JPMorgan Chase & Co. To Grow Consumer Loan Program
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 into the grouped Community Loan Center Coalition of Texas and Indiana.
вЂњThe purpose of this grant is always to spend money on an employer-based, small-dollar loan system that may offer a substitute for payday lending,вЂќ reported Brightpoint President/CEO Steve Hoffman. вЂњThanks to your good financing from JPMorgan Chase, Brightpoint should be able to help to keep more bucks into the pockets of families within our community.вЂќ
In Indiana, payday lenders cost customers over $70 million in costs yearly.
On a typical 14-day loan, payday loan providers charge 365% APR. About 7% of low-income families in northeast Indiana use payday lenders regularly. However it is perhaps not simply low-income households who are making use of these services. Based on the customer Financial Protection Bureau, the income that is median of borrowers is $22,476, but 25 % of most borrowers make $33,876 or maybe more.
вЂњThe challenges dealing with our communities need solutions tailored with their certain requirements,вЂќ 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
Town Loan Center was created in Texas and 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 provide an invaluable worker advantage.
Companies spend no direct price to present this advantage with their workers and it will increase productivity by reducing worker monetary anxiety and workplace morale that is increasing.
Town Loan Center at Brightpoint will offer you a low-cost loan product with an inexpensive payback plan that is payroll deducted enabling workers to conquer their economic emergencies. Another good thing about this program is that activity in the loan should be reported to credit bureaus (something lenders that are payday do) assisting to build the credit history associated with the debtor.
Often times pay day loans are useful for things like medical emergencies, automobile repairs, or even get caught 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 begin with providing this service that is new may help alleviate monetary anxiety for lots more families and produce a brighter future for the community,вЂќ concluded Mr. Hoffman. The Consumer Loan Center at Brightpoint is planned to begin with loans that are making January 2016.
About Brightpoint Brightpoint is a private, 501()( that is c) nonprofit organization serving significantly more than 35,000 individuals across northeast Indiana. By way of a range that is wide of, Brightpoint helps communities, families, and people take away the factors and conditions of poverty. All Brightpoint services Schererville payday loans are given without reference to battle, age, color, faith, intercourse, intimate orientation, impairment, nationwide beginning, ancestry, or status as a veteran.