Brightpoint (formerly Community Action of Northeast Indiana or CANI) announced today this is certainly has gotten almost $1 million in capital from JPMorgan Chase & Co. to enhance its customer loan system. Brightpoint received this prize as an element of a $5.1 million grant to your grouped Community Loan Center Coalition of Texas and Indiana.
вЂњThe reason for this grant would be to spend money on an employer-based, small-dollar loan program which will provide a substitute for payday lending,вЂќ reported Brightpoint President/CEO Steve Hoffman. вЂњThanks to your substantial money from JPMorgan Chase, Brightpoint should be able to help to keep more bucks into the pouches of families inside our community.вЂќ
In Indiana, payday lenders cost customers over $70 million in charges yearly.
On a typical loan that is 14-day payday loan providers charge 365% APR. About 7% of low-income families in northeast Indiana use lenders that are payday. But it is perhaps perhaps maybe not simply low-income households whom are making use of these solutions. In accordance with 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 for their specific 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
The city Loan Center originated in Texas and it is now expanding into Indiana.