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

Brightpoint (previously Community Action of Northeast Indiana or CANI) announced that is has received nearly $1 million in funding from JPMorgan Chase & Co. to expand its online payday advance Chambersburg consumer loan program today. Brightpoint received this prize included in a $5.1 million grant towards the grouped Community Loan Center Coalition of Texas and Indiana.

“The reason for this grant is to spend money on an employer-based, small-dollar loan system that may offer an substitute for payday lending,” reported Brightpoint President/CEO Steve Hoffman. “Thanks towards the funding that is generous 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 the average 14-day loan, payday loan providers charge 365% APR. About 7% of low-income families in northeast Indiana use payday lenders regularly. But it is maybe maybe not simply low-income households whom are making use of these solutions. In line 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 require solutions tailored with 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 which will link them to greater financial possibilities and success.”

Town Loan Center was created in Texas and is now expanding into Indiana. The Indiana Association for Community Economic Development (IACED) will behave as the coordinator that is statewide 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 consumers while permitting companies an chance to provide an invaluable worker advantage.

Companies spend no direct price to produce this advantage with their workers and it will increase efficiency by reducing worker economic anxiety and increasing workplace morale.

Town Loan Center at Brightpoint will offer you a low-cost loan item with an inexpensive payback plan that is payroll deducted enabling employees to conquer their economic emergencies. Another benefit of this program is that activity on the loan would be reported to credit bureaus (something payday lenders don’t do) assisting to build the credit rating of this debtor.

Several times loans that are payday useful for specific things like medical emergencies, car repairs, or even to get caught up on bills. While supplying low-cost customer loans of these requirements, Brightpoint may also link borrowers to another solutions 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 for more families and produce a brighter future for the community,” concluded Mr. Hoffman. The Consumer Loan Center at Brightpoint is planned to start making loans in January 2016.

About Brightpoint Brightpoint is really a private, 501()( that is c) nonprofit organization serving significantly more than 35,000 individuals across northeast Indiana. Through a range that is wide of, Brightpoint helps communities, families, and people eliminate the factors and conditions of poverty. All Brightpoint solutions are supplied without respect to competition, age, color, faith, intercourse, sexual orientation, impairment, nationwide beginning, ancestry, or status as being a veteran.