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Addressing high interest payments by nonprofits due to late city payments
2:05:36
·
111 sec
Council Member Brewer raises concerns about nonprofits paying high monthly interest due to late city payments. City officials discuss the availability of a fund to help organizations facing cash flow issues and express willingness to work with affected nonprofits.
- Some organizations are paying up to $28,000 a month in interest
- City officials mention the existence of an interest-free and service-free fund for nonprofits
- There's a lack of awareness among some nonprofits about available financial assistance options
Gale A. Brewer
2:05:36
Number two, a lot of organizations pay like $28,000 a month in interest because of they're not getting paid.
2:05:45
So my question is, I guess some of them know about your grant, your fund, your 30,000,000.
2:05:50
Some don't.
2:05:50
Some may not be eligible.
2:05:52
Do you have a list either through the fund for the city of New York or banks as of the number of nonprofit human services that are paying all this interest?
2:06:01
Like, do you know who's doing all this and can you help them maybe go to your fund?
Kim Yu
2:06:07
I to my knowledge, I don't know of a list but we do have, we are here and we are, make ourselves available.
Gale A. Brewer
2:06:18
Okay.
2:06:18
Just so you know, someone will pay $28,000 a month in interest.
2:06:22
7% at the bank.
2:06:24
I don't know what the fund charges.
2:06:26
It's a lot of money and it's all going for naught basically.
2:06:31
Alright.
2:06:31
Something to think If
Michael Sedillo
2:06:32
you don't mind, council member
Gale A. Brewer
2:06:34
And mostly in the room here behind you.
Michael Sedillo
2:06:36
I'm sorry?
Gale A. Brewer
2:06:37
The people who are paying all this interest Yes.
2:06:40
They're right sitting behind you.
Michael Sedillo
2:06:41
We I hear from them often.
Gale A. Brewer
2:06:42
They're all writing me notes every two minutes.
Michael Sedillo
2:06:44
I I figured.
2:06:47
I'm happy to work in partnership with them.
2:06:49
I would say maybe not the folks that have your number aren't aware of this.
Gale A. Brewer
2:06:53
They all have my number.
Michael Sedillo
2:06:54
But I'm okay.
2:06:55
Great.
2:06:57
I I it is shocking to me when I meet established nonprofit organizations that don't either know that it is interest and service free, don't know that it exists, or there's a perception that there's not funds there.
2:07:08
So like
Gale A. Brewer
2:07:09
We'll make sure.
Michael Sedillo
2:07:10
Well, I'm sorry?
Gale A. Brewer
2:07:11
I can help make sure that they know
Michael Sedillo
2:07:12
about And also work with their chief nonprofit officers because I've also seen other situations where you go to an agency and say there's cash flow issues.
2:07:20
There are other options that agencies can do, including mid year advances.
2:07:23
So the chief nonprofit officers by EO are supposed to be those creative problem solvers.