New Jersey Banks Support Disability & Non-Profit Micro Loan Fund

State Commerce Commissioner Gualberto Medina encouraged more than 12 New Jersey banks to support the state's Disability & Non-Profit Micro Loan Fund, a program that provides loans to businesses run by individuals with disabilities or employing disabled people. The meeting was hosted by The Bank of New York NA at its West Paterson headquarters, where Commissioner Medina emphasized the importance of using free market strategies to achieve social goals. He highlighted that people with disabilities make up 10% of New Jersey's population but less than 5% of entrepreneurs, stressing the need for a broader public-private partnership to support the Micro Loan Fund.

Key Takeaways:

• The Micro Loan Fund (MLF) is a non-profit organization that provides loans to entrepreneurs with disabilities or employing disabled people, aiming to increase employment opportunities and reduce dependence on government programs.
• The Bank of New York NA was the first financial institution to support the Micro Loan Fund, making a below-prime loan of $100,000 and a grant to the loan fund.
• Commissioner Medina highlighted the potential economic benefits of the Micro Loan Fund, citing that putting 15% of the disabled population in the labor force would result in significant savings for state and federal governments, new revenues for the state, and major earnings and cash entering the economy.
• The Micro Loan Fund received a $100,000 grant from The Dole Foundation, which was matched by a $200,000 grant from the New Jersey Economic Development Authority (NJEDA).
• The fund has assisted individuals and businesses with little or no collateral or credit history, providing a commercially accepted financing process that incorporates traditional lending and economic development organizations.

Statistics:

• Approximately 360,000 people with a disability in the 18-64 age range are not in the labor force.
• A 15% increase in employment opportunities for the disabled population could result in significant savings ($X) for state and federal governments, new revenues ($Y) for the state, and major earnings and cash entering the economy ($Z).
• The Bank of New York NA has 105 branches throughout New Jersey with assets of $4.2 billion as of September 30, 1994.
• The Bank's parent company, The Bank of New York Company Inc., has $50 billion in assets as of September 30, 1994.

Sources:

• "Meeting Encourages Banks To Help Fund for Disabled Entrepreneurs"

(Business Wire, December 19, 1994)

• New Jersey Commerce Commissioner Gualberto Medina
• Bank of New York NA Chairman and President F. James Hutchinson
• The Dole Foundation Program Officer Randy Davis
• Acting Director of the Micro Loan Fund Renee Franklin