Brightpoint (formerly 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 as an element of a $5.1 million grant to your Community Loan Center Coalition of Texas and Indiana.
вЂњThe reason for this grant would be to purchase an employer-based, small-dollar loan system which will offer an substitute for payday lending,вЂќ reported Brightpoint President/CEO Steve Hoffman. вЂњThanks to your large money from JPMorgan Chase, Brightpoint should be able to help to keep more bucks into the pockets 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 payday lenders regularly. However it is perhaps perhaps maybe not just low-income households whom are utilizing these solutions. In line with the Consumer Financial Protection Bureau, the median earnings of payday borrowers is $22,476, but one fourth of all of the borrowers make $33,876 or higher.
вЂњThe challenges dealing with our communities need solutions tailored for their needs that are specificвЂќ said Jim Cook, unit supervisor for ChaseвЂ™s Commercial Bank. вЂњBrightpoint is developing revolutionary approaches for the requirements of Fort Wayne area families that may link them to greater economic opportunities and success.вЂќ