Loans For Women – Web Eclair http://webeclair.com/ Mon, 21 Jun 2021 17:19:54 +0000 en-US hourly 1 https://wordpress.org/?v=5.7.2 https://webeclair.com/wp-content/uploads/2021/05/web-eclair-icon-150x150.png Loans For Women – Web Eclair http://webeclair.com/ 32 32 Biz2Credit to organize forum with US Senator Jeanne Shaheen https://webeclair.com/biz2credit-to-organize-forum-with-us-senator-jeanne-shaheen/ https://webeclair.com/biz2credit-to-organize-forum-with-us-senator-jeanne-shaheen/#respond Mon, 21 Jun 2021 17:03:10 +0000 https://webeclair.com/biz2credit-to-organize-forum-with-us-senator-jeanne-shaheen/

NEW YORK, June 21, 2021 (GLOBE NEWSWIRE) – Biz2Credit, Paychex, Inc. and CPA.com announced today that they will co-host an online forum featuring U.S. Senator Jeanne Shaheen (D-NH) , one of the US Senate’s mainstream small business owners.

The Paycheque Protection Program – A Look Back and The Way Forward with Jeanne Shaheen The roundtable will include time for the Senator to answer questions from the audience of business owners, including many who have received government-backed funding through the P3 and are now asking for a loan forgiveness.

How vital was PPP to the survival of small businesses? According to Melinda Kaye, owner of tekHouse, a computer consulting company based in Tulsa, Oklahoma, the program has been a lifeline.

“After applying for funds, it took us about 3-4 weeks to get approval and funding. The loan cancellation took about 4 to 5 months, ”Kaye said. “PPP funding saved me. There is no doubt about it. “

The second round of the PPP, which closed on May 28, was a success for millions of small businesses across the country. In total, roughly $ 800 billion has been distributed to small businesses in America through nearly 12 million loans, reaching nearly every community across the country, from New Hampshire to Hawaii and everywhere in between.

This online forum will give business owners the opportunity to hear Senator Shaheen, co-author of the PPP, explain how the federal government and the private sector have partnered to support business owners during the pandemic of COVID-19. She and her fellow sponsoring company panelists will discuss how and why the PPP has been successful in providing a financial lifeline to small businesses that have been negatively affected by the closures and reduced economic activity caused by COVID. -19.

To subscribe to the online forum at Wednesday 23 June, at 11:30 a.m. (EDT) / 8:30 a.m. (PDT), visit the Biz2Credit COVID-19 Webcast Center.

Key topics will include:

  • Understand Congress’ approach to authorizing P3s and the results small businesses are now seeing.
  • Find out about upcoming initiatives the federal government is considering to provide additional support to small business owners.
  • Learn from the American Institute of CPAs (AICPA) the vital role CPAs and accounting firms have played in the success of P3s thus far.
  • Hear the latest data from Paychex | IHS Markit Small Business Employment Watch, an indicator of the resilience of small businesses during COVID-19.
  • Get ready for the sequel with Biz2Credit’s presentation on the future of corporate finance following the Paycheck Protection Program.
  • Question and answer session with Senator Shaheen, who will answer questions from business owners.

“We are honored that Senator Jeanne Shaheen is attending our event and speaking to business owners who are still trying to recover from the huge disruption COVID-19 has had on their businesses,” said Rohit Arora, CEO of Biz2Credit, who organized the event. . “This online forum offers information that will help small business owners better overcome the lingering economic challenges caused by the pandemic. “

Panelists will discuss the recovery process from the devastating economic impact of COVID-19 on small businesses, especially those owned by women and minorities.

  • Senator Jeanne Shaheen is the first woman in American history to be elected both governor and senator. She is a trailblazer with a reputation for working across the aisle to get things done and is known for her thoughtful leadership, hard work and dedication to improving the lives of the middle class. She has served in Washington since 2009 and is a member of the Senate Committee on Small Business and Entrepreneurship and other important committees. Senator Shaheen will speak about government-backed programs for corporate relief in the COVID-19 pandemic and the work she and her colleagues are doing on behalf of American small businesses.
  • Erik Asgeirsson, President and CEO of CPA.com, the business and technology arm of the American Institute of CPAs (AICPA), will discuss AICPA’s work in building a coalition to support PPP implementation and the role CPAs played in advising small business owners during this critical time. He will also speak about the ongoing efforts of the AICPA coalition to help create a common approach to the PPP loan cancellation process, including the development of tools to automate and simplify the steps applicants must take. Erik will be joined by Michelle McVetty, CPA, partner at Cohos Advisors PLLC, based in Lancaster, NH and a member of both AICPA and the New Hampshire Society of CPA. She has helped many small businesses get PPP loans and now advises them through the forgiveness process.
  • Franck Fiorille, Vice President of Risk, Compliance and Data Analytics at Paychex, to Discuss Ideas from the Company’s 680,000 Small and Medium Business Customers and Share Paychex Data | IHS Markit Small Business Employment Watch, an indicator of the resilience of small businesses during COVID-19. It will also detail how Paychex has supported businesses throughout the pandemic with tools, resources, and advice to navigate stimulus programs, HR challenges, and more. The stimulus support provided has helped Paychex clients maximize more than $ 65 billion in PPP loans and $ 2.5 billion in employee retention credits and paid sick leave.
  • Rohit Arora, CEO of Biz2Credit, will detail proprietary data from Biz2Credit’s Small Business Cash Flow Report, which examined the effects of PPP on small business performance during the COVID-19 pandemic. He will also talk about the status of PPP loan cancellation and the important role SBA-approved FinTech companies have played in the success of the Paycheck Protection Program. Rohit will be joined by Steven Pawlyk, owner of Innovative Performance Productions, a music organization based in Windham, NH.

About Biz2Credit
Founded in 2007, Biz2Credit has helped organize over $ 7 billion in financing for small businesses. Through its SBA-approved financing subsidiary, Biz2Credit ranked among the most active PPP providers in 2021, securing more than 170,000 PPP loans for small businesses. The company is extending its cutting-edge technology by providing the Biz2X Platform (www.biz2x.com) digital lending solution to banks and other financial institutions. Visit www.biz2credit.com or Twitter @ Biz2Credit, Facebook and LinkedIn to learn more.

About CPA.com
CPA.com brings innovative solutions to the accounting profession, either in partnership with leading service providers, or directly through its own development. The company has established itself as a thought leader in emerging technologies and as a trusted business advisor to practitioners in the United States with a growing global focus. Our company’s primary mission is to drive the transformation of practice areas, advance the profession’s technological ecosystem, and lead technological research and innovation efforts for practitioners. A subsidiary of the American Institute of CPAs, CPA.com is also part of the Association of International Certified Professional Accountants, the world’s most influential organization representing the profession.

About Paychex
Paychex, Inc. (NASDAQ: PAYX) is a leading provider of integrated human capital management solutions for human resources, payroll, benefits and insurance services. By combining its innovative software as a service technology and mobility platform with personalized and dedicated service, Paychex enables small and medium business owners to focus on growing and managing their business. With over 45 years of industry expertise, Paychex serves approximately 680,000 salaried customers as of May 31, 2020, in over 100 locations in the US and Europe, and pays one in 12 US private sector employees. Visit paychex .com and stay connected on Twitter and LinkedIn.

Media contact: John Mooney, (908) 720-6057, john@overthemoonpr.com


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Women of N’rangpur duped by lakhs on a loan application https://webeclair.com/women-of-nrangpur-duped-by-lakhs-on-a-loan-application/ https://webeclair.com/women-of-nrangpur-duped-by-lakhs-on-a-loan-application/#respond Sun, 20 Jun 2021 18:33:37 +0000 https://webeclair.com/women-of-nrangpur-duped-by-lakhs-on-a-loan-application/

Two months ago, a certain Ravi Narayan Rautaray opened a company called AU Small Finance by renting a room on Medical Road in Umarkote town of Nabarangpur district.

From April 31 to June 5, Ravi introduced himself as a deputy director of the company and assigned four girls and a boy from the Umarkote region to oversee the paperwork and online connection of the group. Ravi Narayan’s job was to bring groups of women together to form new groups to provide them with loans.

He took a deposit of Rs 840 for a loan of Rs 30,000 and Rs 940 for a loan of Rs 40,000 as insurance and processing costs. In this regard, Ravi Narayan asked the innocent women of SHG to submit copies of bank accounts, voter ID cards and Aadhaar card for registration purposes. Sources said about 2,500 women’s groups in Chandahandi, Raighar, Jharigam and Umarkote regions of Nabarangpur district paid thousands of rupees in the name of insurance and treatment fees to obtain a loan. Money was raised from around 2,500 groups.

However, on July 10 at 10 a.m., staff members found the office locked and the office notice board missing. They tried to contact Ravi Narayan by phone but his cell phone was turned off.

Later, they went to Ravi’s house near the office and found the door locked. When questioned, the owner of the house said Ravi had not been in his room since last night. The news spread quickly throughout the region. After seeing the office closed, the women who had paid the money insisted on returning the money. Finally, the employees lodged a written complaint with the Umarkote police station for self-defense. When contacted, Umarkote PS IIC Naresh Pradhan said: “The complaint has been registered and the police have taken steps to apprehend the accused.


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How Sheluded Provides Funding Opportunities for Women Entrepreneurs https://webeclair.com/how-sheluded-provides-funding-opportunities-for-women-entrepreneurs/ https://webeclair.com/how-sheluded-provides-funding-opportunities-for-women-entrepreneurs/#respond Sat, 19 Jun 2021 09:00:57 +0000 https://webeclair.com/how-sheluded-provides-funding-opportunities-for-women-entrepreneurs/

Africa has more female entrepreneurs than any other continent in the world. This should mean that women are the engine of the economy, but in reality they are not. For the most part, women-run businesses remain at the level of petty trading and self-employment, barely growing to the point of either hiring enough labor or having a significant impact on the economy.

One of the reasons for this is that they rarely have access to funding. Sheclused Founder and CEO Ifeoma Udoh was a guest at Nairametrics Business Half Hour, where she pointed out that in four years of working with a company that provided start-up funding to businesses, she had barely seen any women come in search of funding. for their businesses and it piqued his interest.

“It was confusing to see that I have hardly ever seen women come to seek funding for companies, especially since we know that Africa has the largest number of women entrepreneurs. If they are not given the money to start or grow their business then this is something to be concerned about. It just means that the people who run the companies that should stimulate the economy do not have access to finance ”, Udoh explained.

Sheclused was founded in 2019 to provide women with financing opportunities, access to capital and business training to run their businesses. Shecluded started out with a focus on stay-at-home moms, and later on low-income people who wanted to go into business. So far, the company has been able to better define its target market to accommodate more women and intends to do more in the future.

“I started Sheclusd with the main goal of ensuring that women entrepreneurs who can do more have the resources to do more. I learned that capital and access to capital and finance can change people’s lives, so when we started I didn’t want to give 50,000 naira loans to women because I didn’t see it. would have a great impact on them or on the economy. A person cannot evolve with a loan of 50,000 naira and he cannot employ others. I wanted to give them the type of loan that would change their lives, help them engage others and have a visible impact on the economy around them ”, Udoh explained.

Is Shecluded discriminatory? NO!

Shecluded set out to focus on a demographic that had been largely unexplored in terms of financial initiatives and services for entrepreneurial businesses.

It took a lot of funding to do this, but Udoh explained that she refrained from getting funding in the first year because she wanted to firmly set the tone of the business and get everything in place. For the first year of operation (2019) she started with her savings and in the second year (2020) secured $ 100,000 in funding to grow.

The company is already moving towards a kind of digital bank for women, since it now has a savings product based on demand. Sheclused is also currently raising more funds and intends to roll out more products before the end of 2021, and to become the number one resource and financial service for women in Nigeria and Africa in the years to come.

Why women are excluded from funding opportunities

The question of why women entrepreneurs were excluded from funding opportunities in the first place, despite being more numerous, is what Shecluded first set out to answer before proposing any solutions. Some of the reasons Udoh cited were literacy, socio-cultural biases, and the way financial services were communicated to women.

“If you just give a woman a loan, she might turn you down. But when it comes to an asset-based loan, something that would clearly improve one’s business, then you might get a better answer. So I discovered that there had been problems in the way financial services were communicated to women in the past ”, Udoh said.

To address literacy and financial lifestyle issues, Sheluded also launched counseling sessions in 2020 to teach women how to have financial plans, emergency funds, an investment culture, and cut spending. when it comes to lifestyle. There were also trainings on digital skills, self-development, self-promotion and marketing.

“Another thing we found is that female entrepreneurs are primarily motivated by survival. They want to be able to support themselves and take care of their families. I encourage women to look beyond the family and think about how their businesses can help build the nation, especially as they begin to employ others.

Any woman who decides to do something will and will do it well, so we need to broaden her mind to think beyond entrepreneurship to survive and start thinking about how she can do more and be more. This is what I want to see in the next level of entrepreneurship ”, Udoh said.


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Poor women who had taken out loans from MFIs will benefit from relief and incentives: CM https://webeclair.com/poor-women-who-had-taken-out-loans-from-mfis-will-benefit-from-relief-and-incentives-cm/ https://webeclair.com/poor-women-who-had-taken-out-loans-from-mfis-will-benefit-from-relief-and-incentives-cm/#respond Fri, 18 Jun 2021 18:27:56 +0000 https://webeclair.com/poor-women-who-had-taken-out-loans-from-mfis-will-benefit-from-relief-and-incentives-cm/

Assam Chief Minister Himanta Biswa Sarma said on Friday he was determined to keep his election promise to provide relief and incentives to poor women who had taken out loans from various microfinance institutions ( IMF).

The government has had ongoing discussions with MFIs, as a result of which the outstanding loan amount was reduced to Rs 8,250 crore from 12,500 crore and this will benefit 22 lakh poor and destitute women in the state, said the chief minister at a press conference here. .

The outstanding loan has declined as MFIs have flouted the standards set by the Reserve Bank of India (RBI), including granting a loan of over Rs 1.25 lakh to a group or granting several loans to one person or group, he said. .

During the discussions, it was decided that any loan amount over Rs 1.25 lakh would be canceled and if there were four outstanding loans against an individual, the principal and interest amount of the fourth loan would be canceled, Sarma said.

These measures have reduced the outstanding amount and will go a long way in helping poor and needy women.

“I had said in all my election meetings, while I was campaigning for the BJP, that the loan exemption relief will be for poor women and not for the middle class or the rich,” a- he declared.

The state government decided to classify borrowers into three groups, the first being women who regularly repay loans, he said.

“These women should continue to do so so that their CIBIL score is not affected and the government will reward these quick payers with a one-time incentive,” he said.

The second category includes women who are late, that is, those who paid regularly but are now late because they stopped paying after learning that the loans would be canceled.

“I call on this category of women to resume repayment of their loan and the government will pay back the overdue amount,” he said.

In the third category are women who do not intend to take out other loans or engage in other activities and the government will provide them with complete relief.

However, women with full waivers will not be able to take out other loans in the future.

In total, 26 lakh clients with 45 lakh bank accounts took loans from 40 lenders with 53 percent of this amount loaned by banks, 22 percent by non-bank financial corporations (NBFC) and microfinance institutions, 26 percent by small funding banks and 16 percent by mainstream NBFCs.

The chief minister decided to set up a committee to study the financial implications of the cancellation of the loans during the first cabinet meeting of the new Council of Ministers held on May 11 with the Minister of the Development Department of Guwahati, Ashok. Singhal, as President and Principal Secretary of Finance. and Panchayat and Rural Development as members.

The chief minister asked the committee to prepare a package to help the poorest women who had taken out loans and who are facing immense hardship.

It has been decided that only loans taken out before December 31, 2020 and those with a family income of Rs a lakh, paying income tax, owning four-wheeled vehicles or any other RBI directive will be taken into account. will not be taken into account. for forgiveness of loans.

(This story was not edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


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CDFIs should be at the center of a fair post-COVID-19 recovery https://webeclair.com/cdfis-should-be-at-the-center-of-a-fair-post-covid-19-recovery/ https://webeclair.com/cdfis-should-be-at-the-center-of-a-fair-post-covid-19-recovery/#respond Fri, 18 Jun 2021 10:00:18 +0000 https://webeclair.com/cdfis-should-be-at-the-center-of-a-fair-post-covid-19-recovery/

The light at the end of the pandemic tunnel is brightening, but a full small business recovery is going to take time, money and a concerted effort. And if this is a fair recovery that helps underfunded small businesses (those owned by women, entrepreneurs of color, and those in rural communities), we must continue to activate and empower financial institutions in Canada. community development (CDFI) – nonprofit lenders. who did Yeoman’s job during the depths of COVID-19 to distribute federal aid to our nation’s hardest-to-reach small businesses.

The paycheck protection program ended on May 31, leaving a tremendous opportunity for the private sector to step up to fill many gaps that PPP did not address. Businesses can and should work with these nonprofit lenders who have provided so much help to small businesses during the pandemic.

Community development financial institutions have been a crucial lifeline for small businesses across the country during the pandemic and for decades before. These lenders, which number more than 1,100 nationwide, provide affordable loans and technical assistance to businesses, with a mandate to lend at least 60% of their lending volume to underserved borrowers. After the start of the pandemic, a subset of around 300 CDFIs made $ 7.4 billion in PPP loans in the first three months. And when the PPP portal reopened in early 2021, CDFIs were granted a period of exclusive access, recognizing that they are best placed to reach those hardest hit by the health and economic effects of the disease. pandemic. To date, these institutions have deployed nearly $ 15 billion in PPP loans.

It was not just the federal government that recognized the value of CDFIs during the pandemic. Companies have started investing in CDFIs at much higher rates than ever before. As Laurie Spengler, CEO of Courageous Capital Advisors, and George Surgeon, CEO of GSJ Advisors, point out, companies have been “drawn to their mission, their relevance in the context of Covid-19 and their demonstrated ability to have an impact in communities where there are few options for responsible financial institutions, especially for low-income people, while improving their own environmental, social and governance profiles. “

Businesses can – and should – play an ongoing role in helping small businesses rebuild themselves by supporting CDFIs, even after the worst of the pandemic is definitely behind us. Ongoing business investment and partnerships with CDFIs, in the form of loans and outright philanthropy, will help create a more equitable small business sector and a much stronger economy overall.

It is in the interests of businesses to do so. Businesses benefit from a healthy and diverse small business community. Before the pandemic, small businesses employed nearly half of the U.S. workforce and generated two-thirds of new jobs. And history shows that it is small businesses that contribute to economic recovery after major crises. They create the prosperous neighborhoods where the employees of the companies live; they stimulate economic growth which stimulates consumer spending; and many provide goods and services directly to large companies.

And it is the CDFIs that have the potential to provide the capital necessary to maintain the strength of our diverse small business communities. Collectively, they raise $ 16 billion in capital for small businesses each year, with 68% going to businesses owned by people of color and women, as well as those in low-income communities.

Yet CDFI’s assets under management represent less than 1% of total assets under management by banks and credit unions not regulated by CDFI. The CDFI industry has long discussed how to evolve, but we hadn’t seen a wide emergence of solutions or recognition of their contributions until the pandemic devastated small businesses. Over the past year, we’ve seen the rise of innovative new lending models that can make CDFIs more attractive to businesses looking to work with them.

Indeed, some of the most successful small business relief efforts during the crisis were achieved through new public-private partnerships using CDFIs to distribute loans. For example, in the California Rebuilding Fund, Wells Fargo, Bank of America and First Republic Bank joined philanthropic, state and local partners to provide $ 50 million to enable 10 California CDFIs to disburse loans to small businesses. and offer technical assistance. Eighty-six percent of the initial loans went to businesses with 10 or fewer employees, and 79% to businesses that historically lacked access to affordable credit, including businesses in low-income communities and those owned by women and people of color. A similar regional effort, the Southern Opportunity and Resilience Fund, is raising up to $ 100 million in capital for small businesses in 15 states, with support from Capital One, Microsoft, JPMorgan Chase, and more.

As we emerge from a long economic downturn, these partnerships provide us with a model for improving the small business finance landscape in this country. To spur a more efficient and equitable economic recovery, we need American businesses to give small business a boost – and CDFIs are the ideal vehicle to do so. With a new commitment from the private sector to partner with CDFIs to provide them with capital, these lenders can put money in the hands of small business owners who will revitalize our struggling economy and help us rebuild stronger than before.

In short, we need a new era of corporate responsibility, where private companies take on the role of CDFIs that bring market-based solutions to small businesses that drive our country’s prosperity and make entrepreneurship. a viable path for wealth creation in America.


Chris Pilkerton is the General Counsel of Accion Opportunities Fund and the former acting director and general counsel of the US Small Business Administration.


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Student loans canceled for 18,000 former students of the ITT Technical Institute https://webeclair.com/student-loans-canceled-for-18000-former-students-of-the-itt-technical-institute/ https://webeclair.com/student-loans-canceled-for-18000-former-students-of-the-itt-technical-institute/#respond Wed, 16 Jun 2021 17:16:09 +0000 https://webeclair.com/student-loans-canceled-for-18000-former-students-of-the-itt-technical-institute/

(AP) – The U.S. Department of Education said on Wednesday it was wiping out student debt for thousands of borrowers who frequented a for-profit college chain that made exaggerated claims about its graduates’ success in finding jobs.

The Biden administration said it approved 18,000 loan forgiveness requests from former students of the ITT Technical Institute, a chain that closed in 2016 after suffering a series of sanctions from the ITT Technical Institute. Obama administration. The new loan discharges will erase more than $ 500 million in debt.

The move marks a step forward in the Biden administration’s efforts to clear a backlog of claims in the borrower defense program, which grants loan forgiveness to students who have been defrauded by their colleges. Claims piled up during the Trump administration, which blocked the program and only started processing claims after a federal court called for it. There are now over 100,000 pending applications.

In announcing the new action, Education Secretary Miguel Cardona pledged to continue defending students deceived by their schools.

“Our action today will give thousands of borrowers a fresh start and the relief they deserve,” Cardona said in a statement. “Many of these borrowers have been waiting for relief for a long time, and we must work quickly to make decisions for those whose claims are still outstanding. “

This follows another round of loan releases in March, when the Education Department forgave $ 1 billion in federal student debt for 72,000 borrowers. These claims were all from former for-profit college students.

Borrower advocates applauded the new approvals but called for quick relief for the thousands of other students whose applications are still pending, including many who attended ITT Tech.

“It appears the Biden administration really wants to help the people who need to be released,” said Alex Elson, vice president of Student Defense, a Washington law group. “But that makes it all the more baffling that they are so reluctant to use their authority to immediately and automatically help the countless additional borrowers who are still waiting.”

The borrower’s defense is part of several education programs targeted for overhaul by the Biden administration as it seeks to reverse the policies of the Trump era. Cardona is holding a series of hearings this month as his agency considers changes to this policy and others.

The program was rarely used until 2015, when the Department of Education received thousands of requests from alumni of Corinthian Colleges. The for-profit college chain had recently closed after discovering it had lied to students about placement rates.

Following the collapse of Corinthian and other besieged for-profit colleges, the Obama administration decided to facilitate student loan cancellation. But the overhaul was overturned by the Trump administration, which then wrote its own rules, making it harder to get relief. By changing the rules, then Education Secretary Betsy DeVos said it had become too easy to get loans canceled.

Cardona began undermining DeVos’ rules in March when he repealed a formula that allowed the Education Department to only grant partial discharges of loans to students whose applications had been approved. All borrowers receiving relief will now have their loans fully discharged.

Many of ITT Tech’s 18,000 claims were approved after the education department found out the company lied about graduates’ employment prospects. The agency said ITT had made “repeated and significant misrepresentation” about its ability to help students find jobs. In fact, many students said it was more difficult to find a job when they put ITT on their resumes, the department said.

Further claims were approved after the department discovered that ITT had misled students about their ability to transfer course credits to other colleges. Credit was rarely accepted elsewhere, the department said, leaving students with “little or no progress” in their academic careers.

Borrowers will be notified of the approval of their claims in the coming weeks, the agency said.


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CommonWealth Magazine https://webeclair.com/commonwealth-magazine/ https://webeclair.com/commonwealth-magazine/#respond Tue, 15 Jun 2021 21:04:14 +0000 https://webeclair.com/commonwealth-magazine/

ALL STATES social equity programs are worthless if entrepreneurs of color do not have access to the money they need to start a business.

That was the message from marijuana entrepreneurs – and a state regulator – who testified at a Legislative Assembly Joint Committee hearing on cannabis policy on Tuesday.

“You need dollars to open up, and a state mandate to have restorative social justice and empower those who have been hurt by the failed drug war means nothing if there is no dollars, “said Blake Mensing, a cannabis lawyer and entrepreneur.

The hearing mainly focused on several bills that would create some form of state-sponsored fund to help marijuana businesses owned by those disproportionately affected by the war on drugs – primarily racial minorities. – access to capital. But while there was general agreement that a fund would be beneficial, many details remain to be worked out, including how a fund would work and where the money would come from.

The handful of invoices vary in their details, but all would provide some form of assistance to minority entrepreneurs, including technical assistance and training, low interest or no interest loans, or grants. Aid would be funded through a range of possible mechanisms – public funds, money that marijuana companies pay in state taxes or local fees, or voluntary donations from marijuana companies or others. Not all invoices include a source of funding.

Today, state statistics show that the cannabis industry is predominantly white and male-owned.

The Cannabis Control Commission gives some level of licensing priority to applicants for economic empowerment and social equity – people disproportionately affected by the war on drugs.

Commissioner Nurys Camargo said 500 applicants have received benefits or training under these programs, but so far only 10 social equity businesses have been approved to open, and only 19 businesses belonging to women, veterans or minorities have been granted permission to open.

“The numbers are not where they need to be,” Camargo said. “Too many people still face significant barriers to participate in the industry, and they deserve to have access. “

Camargo said the biggest barrier is access to start-up capital. Massachusetts has strict safety and environmental regulations, and Camargo said complying with them doesn’t come cheap. Since marijuana is still federally banned, applicants often cannot get bank loans.

“They need access to a state-run fund that can offer capital to start businesses,” Camargo said, adding that the state government has always offered assistance to small and medium-sized businesses in other sectors.

Representative David Rogers, a Cambridge Democrat and former chairman of the cannabis policy committee that sponsored one of the bills establishing a social equity trust fund, said it costs around $ 1 million to open a retail marijuana store.

“Communities of color, women, others who historically haven’t had as much access to capital really need help,” Rogers said. “It was a barrier to entry.”

Because it is so difficult for entrepreneurs to access capital, lenders – including companies looking to get themselves into the marijuana industry without priority status – have tried to lend money to the people. social equity enterprises on predatory terms.

Lorna McCafferty, an activist for the Massachusetts Cannabis Reform Coalition, said she knew of a company that offered to pay the borrower a six-figure salary, but all of the company’s profits would go to the lender – essentially transforming the owner of the social equity business into an employee. Scholange Smith, a participant in the commission’s social equity program, commented, “While they say we shouldn’t be working with all these predatory lenders, that’s all we need to work with.

Several people who testified feared that passing a bill without a source of funding or with an uncertain source of funding – such as private donations – would be ineffective. “Anyone who works with bills knows that bringing in a bill that provides funding without a source of revenue is irresponsible and a waste of time for this committee,” said Avyl Andrade, a farmer who seeks to grow marijuana.

But some also fear that the sources of funding identified in the bills are not sufficient. For example, a bill proposed to use community impact fees paid by marijuana companies to capitalize a fund – but this money is supposed to only be used to reimburse municipalities for costs generated by marijuana companies.

Meet the author

Journalist, Commonwealth

About Shira Schönberg

Shira Schoenberg is a reporter for CommonWealth magazine. Shira previously worked for over seven years at the Springfield Republican / MassLive.com where she covered state politics and elections, covering topics as diverse as starting the legal marijuana industry, issues with the state foster care system and the elections of US Sen Elizabeth Warren and Governor Charlie Baker. Shira won the 2018 Massachusetts Bar Association Award for Excellence in Legal Journalism and several articles won awards from the New England Newspaper and Press Association. Shira covered the 2012 New Hampshire presidential primary for the Boston Globe. Prior to that, she worked for the Concord (NH) Monitor, where she wrote about state government, city hall, and Barack Obama’s primary campaign in New Hampshire in 2008. Shira is the incumbent. a master’s degree from the Graduate School of Journalism at Columbia University.

About Shira Schönberg

Shira Schoenberg is a reporter for CommonWealth magazine. Shira previously worked for over seven years at the Springfield Republican / MassLive.com where she covered state politics and elections, covering topics as diverse as starting the legal marijuana industry, issues with the state foster care system and the elections of US Sen Elizabeth Warren and Governor Charlie Baker. Shira won the 2018 Massachusetts Bar Association Award for Excellence in Legal Journalism and several articles won awards from the New England Newspaper and Press Association. Shira covered the 2012 New Hampshire presidential primary for the Boston Globe. Prior to that, she worked for the Concord (NH) Monitor, where she wrote about state government, city hall, and Barack Obama’s primary campaign in New Hampshire in 2008. Shira is the incumbent. a master’s degree from the Graduate School of Journalism at Columbia University.

Pierre Bernard, Chairman of the Massachusetts Growers Advocacy Council, appeared to the virtual audience with a Zoom background of a circus. He said unless lawmakers create a fund to give entrepreneurs a financial boost, “we can go to that tent behind us and watch the greatest dog and pony show ever. He explained that the Cannabis Control Commission can develop ways to ensure investors don’t have management control over a business – but lenders will always find ways to issue loans that hamper the ability of the business. owner of the share capital to do business without essentially becoming an employee of the investor. .

Even though a social equity entrepreneur gets priority status, Bernard said, “How does this really help me? If I don’t have the means and the technical support to make it happen, that doesn’t mean much.

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Where $ 947 million in PPP loans went in Greater Lansing https://webeclair.com/where-947-million-in-ppp-loans-went-in-greater-lansing/ https://webeclair.com/where-947-million-in-ppp-loans-went-in-greater-lansing/#respond Tue, 15 Jun 2021 02:00:27 +0000 https://webeclair.com/where-947-million-in-ppp-loans-went-in-greater-lansing/

LANSING – In 14 months, $ 947 million entered Greater Lansing from the Federal Paycheck Protection Program, which aimed to provide relief to businesses during the COVID-19 pandemic.

The federal government, through private lenders, has made loans to 9,482 businesses in Ingham, Eaton and Clinton counties, according to a State Journal analysis of US Small Business Administration data. These loans have preserved 111,631 jobs, according to data from the SBA.

The information in the SBA data was entered by the companies that received the loans and covers the loans issued during the two program cycles.

After:Who Obtained the Paycheck Protection Program Loans?

Here’s how Greater Lansing benefited from the PPP:

  • 6,255 Ingham County businesses received $ 665.3 million in loans and preserved 76,885 jobs
  • 2,171 Eaton County businesses received $ 194.5 million in loans and preserved 23,908 jobs
  • 1,056 Clinton County businesses received $ 87 million in loans and preserved 10,838 jobs

What is PPP?

The program was created in March 2020 during the first months of the COVID-19 pandemic as part of the Coronavirus Aid, Relief, and Economic Security Act. The program was re-authorized and a second round of PPP loans was opened in January 2021.


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Honduras to improve drinking water and sanitation services with IDB support – Honduras https://webeclair.com/honduras-to-improve-drinking-water-and-sanitation-services-with-idb-support-honduras/ https://webeclair.com/honduras-to-improve-drinking-water-and-sanitation-services-with-idb-support-honduras/#respond Fri, 11 Jun 2021 22:10:51 +0000 https://webeclair.com/honduras-to-improve-drinking-water-and-sanitation-services-with-idb-support-honduras/

NEARLY 31,000 HOUSEHOLDS IN RURAL AREAS AND TOWNS OF UP TO 30,000 INHABITANTS WILL HAVE ACCESS TO WATER AND SANITATION SERVICES THROUGH A $ 45 MILLION LOAN APPROVED BY THE IDB.

The Inter-American Development Bank (IDB) approved a $ 45 million loan to finance the drinking water and sanitation program in Honduras, which will benefit nearly 31,000 households in rural areas and 30,000 towns. inhabitants by providing them with new and improved equipment. access to these basic services.

The program aims to improve the living conditions of families in rural and peri-urban areas, historically deprived of access to basic drinking water and sanitation services. It will be executed by the Secretaría de Estado en los Despachos de Desarrollo Comunitario, Agua y Saneamiento (SEDECOAS, the Department of Community Development, Water and Sanitation). The project will also help strengthen water security in Honduras, especially in the most vulnerable communities, improve the management of water services to ensure the sustainability of infrastructure investments and build resilience to the environment. climate change.

The program has two main components. The first component, amounting to $ 38.6 million, will be used to build new drinking water distribution and sanitary sewer systems, individual sanitation solutions, and excreta and water treatment systems. worn. These investments will be designed taking into account the potential risks of natural disasters and the effects of climate change. They will also place a strong emphasis on community participation in the operation, maintenance and administration of the systems and on promoting changes in user behavior for proper use of the infrastructure and facilities built. All social management activities will integrate gender and diversity considerations, promoting the equal participation of men and women, especially in training and decision-making.

The second component, amounting to $ 3.21 million, will be used for pre-investment plans and for sector strengthening activities at the level of national, departmental and municipal entities in priority areas in order to strengthen their capacities to planning, monitoring and techniques so that they can better contribute to the sustainability of the system. .

IDB funding comes from two sources: 65% of the ordinary ordinary capital of the Bank, for a term of 25 years, with a grace period of 5.5 years and an interest rate based on LIBOR, and Remaining 35% of concessional funds, which have an amortization period of 40 years, 40 years of grace and 0.25% interest.

About the IDB

the Inter-American Development Bank is one of the main sources of long-term financing of economic, social and institutional projects in Latin America and the Caribbean. In addition to loans, grants and guarantees, the IDB conducts cutting-edge research to offer innovative and sustainable solutions to the most pressing challenges in our region. Founded in 1959 to help accelerate progress in its developing member countries, the IDB continues to work every day to improve lives.


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Rs 12,500 crore of outstanding microfinance loans in Assam: https://webeclair.com/rs-12500-crore-of-outstanding-microfinance-loans-in-assam/ https://webeclair.com/rs-12500-crore-of-outstanding-microfinance-loans-in-assam/#respond Fri, 11 Jun 2021 17:23:55 +0000 https://webeclair.com/rs-12500-crore-of-outstanding-microfinance-loans-in-assam/

A total of Rs 12,500 crore of microfinance loans, comprising both principal and interest, are outstanding in Assam until March 31, Minister Ashok Singhal said on Friday.

Twenty-six lakh clients with 45 lakh bank accounts have taken out loans from 40 lenders, Singhal said at a press conference here.

Singhal said 53% of the outstanding Rs 12,500 crore was loaned by banks, 22% by non-bank financial corporations (NBFC) and microfinance institutions, 26% by small financial banks and 16% by regular NBFCs.

The Minister of Irrigation and Urban Development heads a committee formed to assess the financial situation to keep the BJP’s election promise to forgo microfinance loans.

Chief Minister Himanta Biswa Sarma had decided to set up the panel during the first cabinet meeting on May 11 with Singhal as chairman and senior secretaries of finance and panchayat and rural development departments as members.

“The chief minister asked us to prepare a package to come to the aid of the poorest women who had taken out loans and who are facing immense miseries,” Singhal said.

The committee organized three rounds of meetings with stakeholders including banks, NBFCs, small cooperatives, microfinance institutions and RBI.

We had requested the data they provided, but realized that more data mining was needed and that it will soon be provided by stakeholders. Discussions will continue and we hope to resolve the issue as soon as possible, ” he said.

Certain criteria must be followed according to RBI guidelines when granting loans to borrowers, but it is certain that the standards have been flouted, which has created problems for poor female borrowers, he said. .

The basic standards to follow are that a woman cannot be a member of more than one self-help group (SHG) and no more than two NBFCs should lend to the same borrower.

According to the data made available, 19.10 lakhs of clients borrowed from one lender, 5.08 lakhs from two lenders, 1.54 lakhs from three lenders and 60,000 from more than three lenders.

The minister said action will be taken against lenders who have flouted the norms of the legal framework, as most of the women who have taken out loans are uneducated and do not know the terms and conditions.

He said that discussions were underway on the relief provisions and that only loans taken out before December 31, 2020 will be taken into account.

He said people with a family income of Rs a lakh, paying income taxes, owning four-wheeled vehicles or any other RBI directive would not be considered for loan forgiveness.

(This story was not edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


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