CDFIs like Westminster Economic Development Initiative (WEDI) in Buffalo often help businesses get out from under crushing debt traps set by predatory lenders.
“In Buffalo, one of our clients, A1 Express, a minority-owned non-emergency Medicaid transportation company, needed cash to secure additional vehicles and drivers to help his company keep up with demand. He borrowed money from an online source, secured by future anticipated income, but didn’t understand what this really meant. He borrowed $20,000 then saw that the daily repayment withdrawals from his bank account were much higher than he agreed to — which nearly cost him his business. In fact, overall interest on the loan was in the triple digits.
“That’s when WEDI and Pursuit Lending stepped in. We gave our client a better understanding of the terms of his previous agreement, and he decided to apply to us for loans with clear repayment terms. These CDFI loans paid off the high-interest loan and provided capital for him to purchase additional vehicles to expand his company. These affordable loans allow him to keep his business going, support his employees and serve the transportation needs of the community.”
Click here to read the full article in the Buffalo News.