Announces Proposal to Partner with CDFIs to Deliver $150 Million to Small Businesses Most in Need Upon Federal Approval of Plan
Holds Financial Empowerment Roundtable to Support Black and Brown Communities with Dr. Hazel Dukes, NAACP New York State Conference President
Governor Kathy Hochul today hosted a roundtable in the Bronx focused on how New York State can spur economic recovery in Black and brown communities with NAACP President Dr. Hazel Dukes, and announced new efforts to fight structural racism embedded in the financial system and support innovative community lending programs and economic development services focused on reaching communities of color. The event brought together community leaders, Community Development Financial Institutions, Minority Depository Institutions, Credit Unions and small business owners.
“The pandemic has impacted communities of color disproportionately, expanding the racial wealth gap and exposing the structural racism embedded in our financial system that has prevented New Yorkers from achieving economic prosperity,” Governor Hochul said. “It is critical that we open lines of communication, lift up the organizations on the frontlines of this work, and work together to find the most effective solutions. My administration is committed to supporting community lender institutions that bring financial tools and services to underserved communities, and this new advisory council will help ensure our economic recovery from the pandemic is fair and equitable for all New Yorkers."
CDFIs and MDIs are mission-driven financial institutions that play a critical role in delivering access to financial services and products to historically underserved and underbanked communities, particularly communities of color.
At the event, Governor Hochul announced her plan for the State to partner with CDFIs to deliver more than $150 million of funding to small businesses most in need, upon federal approval of the State's plan. This is part of the Governor Hochul's FY2023 budget which proposed an unprecedented assistance package for small businesses that includes over $500M to New York State through the federal State Small Business Credit Initiative over the next several years. Reaching those small businesses most in need will require working closely with our partners on the ground, including CDFIs, MDIs, and credit unions. Empire State Development Acting Commissioner and President and CEO-designate Hope Knight will work with community leaders to administer these funds upon federal approval of the State's plan.
Governor Hochul also announced a new advisory council of New York State-chartered CDFIs and MDIs to be led by DFS Superintendent Adrienne Harris. This new council will elevate the specific concerns of New York CDFIs and MDIs to support communities of color and ensure their needs are met. As a working and active forum, the new council will discuss ways to modernize regulations and support these institutions to better serve their communities.
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