Sen. Schumer Briefs NYS CDFIS
On May 7, U.S. Senator Chuck Schumer hosted an online briefing for CDFIs in New York State. More than 90 people were on the call, but we’ve posted a recap for anyone who missed it.
We've pasted an excerpt below, with a link to the full text on our website.
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Senator Schumer said that while it was nice to have been able to spend more time with his family, the other good outcome of this crisis is that it has put a “magnifying glass – this crisis – on what’s wrong with the American economy … Minority communities, underserved communities – rural as well – impoverished communities, are just let down.” He hopes that we can use the crisis to make changes that will improve life for all of us in the long term.
He closed by thanking CDFIs again for the “great work that you do to make people’s lives better … We’ve got to get to some level of equality – we are one of the most unequal societies even though we’re among the wealthiest. We’ll work together to make that happen.”
Click here to read the call notes.
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Grand Street Settlement offers youth programming and activities at Community Centers, partner school sites, and other neighborhood locations.
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#KeepCDFIsStrong
CDFIs are all in this together, and we're ALL IN for the communities we serve.
NYS CDFIs responded immediately to the COVID-19 pandemic to inform, support, and facilitate small business access to valuable resources and economic support systems.
CDFI Coalition member Spring Bank got right to work as soon as the SBA Paycheck Protection Program launched, reaching out to its small business customers and nonprofit community partners.
One of the organizations at the top of their list was Grand St. Settlement in New York's Lower East Side. When it opened its doors in 1916, Grand St. Settlement created a community that would transcend place and time. What began as neighbors helping neighbors became a family.
For more than 100 years, they have connected New Yorkers to opportunities that inspire, services that keep families strong, and programs that bring communities closer. Together, they have led bold charges for change, worked to overcome obstacles like isolation and exclusion, and fought to dismantle injustices and broken systems.
Thanks to Spring Bank and the PPP, Grand St. Settlement will be able to make payroll for the next 2 months so their staff can continue to focus on the needs and health of the families and communities they serve.
To date Spring Bank has already disbursed an impressive 325 PPP loans, totaling nearly $90 million. Share your story and help us #KeepCDFIsStrong!
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Check out this short video - Banking for Good: Grand St. Settlement and Spring Bank.
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SBA - PPP Guidance re: Safe Harbor
 A new IFR was released on Friday, May 8 regarding “Extension of Limited Safe Harbor with Respect to Certification Concerning Need for PPP Loan Request.” Read it here.
Change to the Safe Harbor Date:
On April 24, 2020, SBA posted on its website an interim final rule (the Fourth PPP Interim Final Rule), which also was published in the Federal Register on April 28, 2020 (85 FR 23450), to provide relief to PPP borrowers who applied for and received PPP loans based on a misunderstanding or misapplication of the required certification standard. The Fourth PPP Interim Final Rule provides that any borrower that applied for a PPP loan and repays the loan in full by May 7, 2020, will be deemed by SBA to have made the required certification in good faith. SBA, in consultation with the Department of the Treasury, will issue additional guidance before May 14, 2020 concerning how SBA will review the required certification to help PPP borrowers evaluate whether they may have misunderstood or misapplied the statutory certification standard. Based on this upcoming guidance, SBA, in consultation with the Department of the Treasury, determined that it is necessary and appropriate to extend the safe harbor deadline for repaying PPP loans from May 7, 2020 to May 14, 2020.
Because of the extension of the safe harbor deadline, SBA is also extending the deadline for the submission of the initial SBA Form 1502 from May 18, 2020 to May 22, 2020.
Be sure to visit our COVID-19 Resources Page for the most up-to-date guidance from Federal, State and Local agencies.
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Now Hiring
 Across New York State, companies are staffing up to Build Back Better. Please follow the links for more information.
President, TrustPlus
Headquartered in NYC, TrustPlus is a social enterprise delivering a package of phone- and mobile-based financial coaching and products tailored to workers, with diverse customers including employers, benefits providers, fintechs, labor organizations and worker networks.
Managing Director
Community Development Corporation of Long Island (CDCLI)
Centereach, New York
CDCLI is a chartered member of NeighborWorks® and is committed to making dreams of long-term economic stability come true. CDCLI invests in the housing and economic aspirations of individuals and families by providing solutions that foster and maintain vibrant, equitable, and sustainable communities.
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Ask Your NYS Senator to Support the NY Small Business Truth in Lending Act
 The NYS CDFI Coalition is supporting legislation that will bring common-sense transparency standards to small business financing in the State of New York at a time when it’s needed most.
We're sending a letter to the members of the NYS Senate Banks Committee, and hope that if one of these lawmakers is from your service area, you'll do the same!
Here's an excerpt of the letter, posted in full here.
To solve the small business financing transparency problem, Senator Thomas introduced S. 5470, the New York Small Business Truth in Lending Act. Importantly, he amended S. 5470 in March 2020 to clarify that APR or estimated APR must be disclosed for all small business financing products on the market. As a community development nonprofit working to help New York’s small businesses grow and thrive in normal economic times, and to survive in times of great uncertainty like we are facing now, we urge you to support S. 5470 in its current (March 2020) form.
Business owners have long deserved the transparency that universal disclosure standards would bring, including APR for all products, and will need this transparency even more as they seek to rebuild from the crisis. In this difficult time, we ask the Banks Committee to support the needs of New York’s business owners and not cave to the preferences of high-cost lenders who ask for special treatment in future amendments.
Click here to endorse the NYS Small Business Truth in Lending Act.
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