Brightpoint Receives Funding From JPMorgan Chase & Co. To Grow Consumer Loan Program

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 almost $1 million in financing from JPMorgan Chase & Co. to grow its customer loan system. Brightpoint received this honor as an element of a $5.1 million grant to your Community Loan Center Coalition of Texas and Indiana.

“The reason for this grant is always to spend money on an employer-based, small-dollar loan system which will offer an option to payday lending,” reported Brightpoint President/CEO Steve Hoffman. “Thanks towards the nice financing from JPMorgan Chase, Brightpoint should be able to help to keep more dollars within the pouches of families inside our community.”

In Indiana, payday lenders cost customers over $70 million in charges 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 whom are making use of these services. In accordance with the customer Financial Protection Bureau, the income that is median of borrowers is $22,476, but one fourth of all of the borrowers make $33,876 or higher.

“The challenges facing our communities need solutions tailored for their needs that are specific” said Jim Cook, unit supervisor for Chase’s Commercial Bank. “Brightpoint is developing innovative approaches for the requirements of Fort Wayne area families that may link them to greater financial possibilities and prosperity.”

The city Loan Center was created in Texas and it is now expanding into Indiana. The Indiana Association for Community Economic Development (IACED) will behave 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 customers while enabling companies a way to give you an employee benefit that is valuable.

Companies spend no direct price to give you this advantage for their workers and it will 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 inexpensive 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 are going to be reported to credit bureaus (something payday lenders don’t do) assisting to build the credit rating regarding the debtor.

Often times payday loans are useful for specific things like medical emergencies, automobile repairs, or even get caught through to bills. While supplying low-cost customer loans for these requirements, Brightpoint may also link borrowers to another services the agency provides such as for example assistance searching for medical health insurance, help with energy and youngster care expenses, and linking all of them with other resources in the neighborhood.

“We are excited to begin with providing this brand new solution that can help relieve monetary anxiety to get more families and produce a brighter future for the community,” 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 a lot more than 35,000 people across northeast Indiana. Via a range that is wide of, Brightpoint helps communities, families, and people take away the factors and conditions of poverty. All Brightpoint solutions are offered without respect to battle, age, color, religion, intercourse, intimate orientation, impairment, nationwide beginning, ancestry, or status being a veteran.

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