New York has approved credit unions' participation in the
The new option grants members access to reduced-rate financing on loans and qualification for increased funding.
"Small businesses have long been the backbone of our state's economy," Governor Kathy Hochul said in a press release. "This legislation is yet another sign of our commitment to boosting Main Street businesses and fostering New Yorkers' unparalleled entrepreneurial spirit."
Per the specifications of the program, the state will place a deposit at the participating credit union providing the loan equal to the amount borrowed but at a lower interest rate, allowing the credit union to offer the interest savings to the borrower. When the four-year term of the assistance ends, the credit union will refund the deposit to the state.
"For far too long too many places in [New York state] were banking deserts, longing for proper attention to help them grow," said James Sanders Jr., a Democratic state senator in New York, in the release. "By signing this bill, the governor is unleashing the power of credit unions to aid the unbanked.”
