Brightpoint Receives Funding From JPMorgan Chase & Co. To Enhance 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 expand its customer loan system. Brightpoint received this honor as an element of a $5.1 million grant towards the grouped Community Loan Center Coalition of Texas and Indiana.

“The reason for this grant would be to purchase an employer-based, small-dollar loan system which will offer a substitute for 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 bucks within the pockets of families inside our community.”

In Indiana, payday lenders cost customers over $70 million in costs yearly.

On the average 14-day loan, payday lenders charge 365% APR. About 7% of low-income families in northeast Indiana use lenders that are payday. However it is maybe not just low-income households whom are making use of these services. According to the customer Financial Protection Bureau, the income that is median of borrowers is $22,476, but 25 % of all of the borrowers make $33,876 or even more.

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

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 serve the Lafayette market.

Community Loan Centers offer affordable loans to customers while enabling companies a chance to give you a very important worker advantage.

Companies pay no direct price to give you this advantage with their workers and it may increase efficiency by reducing employee monetary anxiety and workplace morale that is increasing.

Town Loan Center at Brightpoint will offer you a loan that is low-cost with an affordable payback plan that is payroll deducted permitting workers to conquer their economic emergencies. Another good thing about this program is that activity in the loan will soon be reported to credit bureaus (something payday lenders don’t do) assisting to build the credit history of this debtor.

Often times loans that are payday useful for things like medical emergencies, automobile repairs, or even to 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.

“We are excited to begin with providing this brand new solution that can help relieve economic anxiety to get more families and create a brighter future for the community,” concluded Mr. Hoffman. The Consumer Loan Center at Brightpoint is planned to begin with making loans in January 2016.

About Brightpoint Brightpoint is really a private, 501()( that is c) nonprofit organization serving a lot more than 35,000 individuals across northeast Indiana. Via a wide array of programs, Brightpoint helps communities, families, and people get rid of the factors and conditions of poverty. All Brightpoint solutions are offered without respect to competition, age, color, faith, intercourse, intimate orientation, disability, nationwide beginning, ancestry, or status as a veteran.

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