More Small Businesses Could Bid for MTA Contracts Thanks to Carver Federal Savings Bank Loans
Westfair Communications
(9-30-13)

Empire State Development Corp., a New York State economic development agency, has partnered with the Metropolitan Transportation Authority (MTA) and Manhattan-based Carver Federal Savings Bank to make it easier for small businesses to bid on construction projects with the MTA. The state’s aim is to increase the availability of funds for the MTA’s high-capital projects through its Small Business Mentoring Program, which provides businesses with mentoring, training, surety bonding services and access to loan capital. The maximum amount of loans Carver Federal Savings Bank will provide has increased to $900,000, up from $150,000. This increase in the amount of lending through the bank is intended to help small businesses grow, create jobs, provide more competitive prices for MTA construction contracts, and save the state money, MTA CEO Thomas F. Prendergast said. 

City First Foundation Presents Finance Summit
City First Foundation
(11-7-13)

The City First Family of Companies will be holding its inaugural finance summit, "The Resurgence of Neighborhoods: Fueling D.C.'s Economic Growth" on November 7, 2013 at the Omni Shoreham Hotel in Washington. The summit will focus on how small businesses, new housing options, increased transportation options and innovative financing are changing neighborhood dynamics, contributing to Washington's population growth and building the city's economic vitality. Speakers will discuss how the success of Washington's highly desirable neighborhoods can be replicated in underserved neighborhoods while avoiding gentrification that jeopardizes equity and cultural diversification. Attendees are encouraged to register here.

 

In Banking, Should There Be a ‘Public Option’?
New York Times
(10-1-13)

In an New York Times editorial debate, banking industry experts put forward their views on the potential value of state-run banks. Only one U.S. state, North Dakota, currently owns a bank. But that bank has been so successful – and the financial systems elsewhere have been so problematic – that 22 other legislatures have considered starting similar state banks. Debaters were posed the following questions: would government-owned banks distort the free market, or complement private lending? If states or the federal government set up banks, should they lend directly to consumers and businesses? "By providing inexpensive, accessible financing to the free enterprise sector of the economy, public banks make commerce more vital and stable," writes Ellen Brown, president of the Public Banking Institute. But Hester Peirce of George Mason University's Mercatus Center recommends caution: "imagine the anti-government sentiment that would be stirred up by a wave of foreclosures by the state bank, widespread write-downs on taxpayer-financed mortgages, or the revelation of sweetheart loans made by state banks to powerful politicians’ cronies. Free markets offer healthy discipline for borrower and lender alike." 

Tribes Lose Battle to Shield Payday Sites From New York State Crackdown
New York Times
(10-1-13)

A federal judge has denied a request by two American Indian tribes to stop New York State’s top financial regulator from cracking down on their online payday lending businesses. The two plaintiffs in the case are the Otoe Missouria Tribe, in Red Rock, Okla., and the Lac Vieux Desert Band of Lake Superior Chippewa Indians, in Watersmeet, Mich. The tribes had argued that Benjamin M. Lawsky, superintendent of the state’s Department of Financial Services, overstepped his jurisdictional bounds in trying to regulate business activity taking place on Indian reservations in Oklahoma and Michigan. The Federal District Court in Manhattan issued a ruling dismissing the Indians’ claims. According to the decision, when tribal businesses use the Internet to reach consumers beyond their reservations’ borders, they lose their federally protected rights as sovereign nations. Attorney David Bernick, who is representing the tribes, suggested he would seek to appeal the case. This is the second recent decision that has gone against the Indian tribes. Last week, the Consumer Financial Protection Bureau rebuffed a bid by three Indian online lenders to halt the federal agency from investigating whether their business practices violated federal laws.

Business and the Shutdown: Banks Prepare for Tricky Times
Wall Street Journal
(9-30-13)

The government shutdown could create headaches for some lenders and borrowers. Issues might arise when agencies such as the Small Business Administration, Federal Housing Administration and Department of Veterans Affairs are involved, or in requests of tax transcripts from the IRS. Customers could also experience delays in loan approvals which require employment verification, as for government employees. For big banks that handle and process many payments, this could mean major challenges. The government-operated food stamp program distributes payments through debit cards loaded up by big banks. Bank executives will need to decide whether to trust that the government will continue to make payments for such cards – and thus whether to keep loading them up with funds and sending them out. Similar questions may be asked of government-guaranteed loans to small businesses. The shutdown may result in processing delays and uncertainty across the banking sector. 

Staying Alive: Weak Banks Hang On
Wall Street Journal
(9-29-13)

Bank-failure data show that weak banks are hanging around much longer than they have in the past. The risk, some banking-industry observers say, is that regulators' go-slow approach can prompt bank management to take extreme risks to survive and can lead to bigger price tags for the government if they ultimately fail. 13 of the 22 banks that failed in 2013, or 59%, were deemed "significantly undercapitalized" for at least a year before they failed. That compares with just 20% of the bank failures in 2012. The Treasury Department's Inspector General's Office, which examines bank failures, has criticized banking regulators for their inaction. Of 56 failed-bank reviews from 2008 through 2012, 48 have been critical of regulators, saying they often didn't take strong, quick action to address risky practices that helped lead to the banks' failures. A 2011 Government Accountability Office report said that although regulators identified failing banks' problems early and could have addressed them sooner, "they did not consistently do so." 

Treasury's Lapse in Appropriations Contingency Plan
U.S. Department of the Treasury
(9-27-13)

The U.S. Treasury department describes its shutdown contingency plan. Operations of the following bureaus are funded from sources other than annual Congressional appropriations and would operate normally if a government shutdown were to occur: the Office of the Comptroller of the Currency, the United States Mint, and the Bureau of Engraving and Printing. Additionally, Public Debt functions of the Fiscal Service are authorized to continue in the absence of annual appropriations by the Second Liberty Loan Act. Specific programs within DO and certain bureaus that are funded from other than annual appropriations are addressed within the individual plans. The CDFI plan will use available prior year balances during a short lapse of appropriations. In the event of a longer-term lapse the CDFI plan would re-evaluate based upon a range of factors, including availability of funds. 

From the Margins to the Mainstream: Assessment of the Impact Investment Sector and Opportunities to Engage Mainstream Investors
World Economic Forum Investors Industries
(9-1-13)

An Economic Forum Investors Industries report provides an assessment of the impact investment sector and identifies the factors constraining the acceleration of capital into the field. The authors of the report expect that as enterprises and deal sizes grow, track records develop and perceptions about financial performance are realized, impact investing will become an increasingly attractive option to investors. Among the report's industry recommendation are creating transparent tools to measure social impact, attracting investors with more flexible investment mechanisms, cooperating with philanthropists and foundations and collaborating across the industry to aggregate impact data and connect capital to deals. The report is the product of interviews, workshops and conference calls with 150 mainstream investors, business executives, philanthropic leaders and policy-makers.

 

Community Action, Inc. Seeks Deputy Director (Beloit, Wis.)
The Deputy Director will provide strategic leadership to support the agency's objective of providing strong, effective and culturally relevant services that meet the needs of our local communities. This position will ensure programs are managed effectively, contract and funder requirements are adhered to and that programs are managed efficiently in accordance with strong fiscal standards and approved budgets. The individual will be a core member of the agency leadership team, responsible for integrating strategic objectives within program operations. This position is responsible to the Executive Director.