Bloomberg Law recently posted an article titled “Community Development Lenders Push for Larger Role in Virus Aid.”
Archana Pokhrel, owner of Lenox Spa and Nails in Manhattan, doesn’t know when customers will return for the hands-on beauty treatments that stopped when the Covid-19 pandemic struck earlier this year.Bloomberg Law: June 4, 2020
NYS CDFI Coalition board member Yanki Tshering is the Executive Director of the Business Center for New Americans, which provided a $27,000 PPP loan to Ms. Pokhrel.
According to Tschering, “CDFIs are perfectly poised to work with micro and small businesses in low income neighborhoods and communities of color. We see our role as one which compliments the financial services provided by banks. But CDFIs in New York – and across the country – are in desperate need of an infusion of capital so we can continue to serve members of our community, like Archana. In fact, once our lending resources were tapped out, we had to secure a bridge loan from OFN [Opportunity Finance Network] to continue to provide PPP loans.”
The NYS CDFI Coalition urges Congress to approve $1 billion for the CDFI Fund, which provides grants and other public funding to finance our lending and operations. The COVID-19 pandemic and resulting economic downtown illustrates the need for a significant increase in support for CDFIs, which received a $262 million appropriation in FY 2020.
Sign the petition here.