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Community lenders and CDCs press for more state CDFI and microloan funding; warn of predatory receivable‑based loans

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Summary

CDFIs, community development corporations and coalition groups told the committee they need more stable state funding for small business technical assistance and microloans and described predatory point‑of‑sale cash‑advance products and the chilling effect of recent ICE activity on foot traffic.

Representatives of Massachusetts community development corporations (CDCs), community development financial institutions (CDFIs) and coalition groups told the Joint Committee that state‑level investments are required to sustain small business technical assistance (SBTA), microloan programs and CDFI capital as federal funding becomes uncertain.

"We ask the committee to continue supporting the increase of state level funding for the small business technical assistance program... or consider creating a technical assistance stabilization fund to ensure continuity of services in times of federal volatility," Yadi de Jesus, director of economic…

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