Philadelphia Loans – OHCD Phila http://ohcdphila.org/ Fri, 14 Jan 2022 00:01:01 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://ohcdphila.org/wp-content/uploads/2021/06/icon-5-150x150.png Philadelphia Loans – OHCD Phila http://ohcdphila.org/ 32 32 Student loan processor Navient agrees to $1.8 billion deal with states over predatory practices https://ohcdphila.org/student-loan-processor-navient-agrees-to-1-8-billion-deal-with-states-over-predatory-practices/ Fri, 14 Jan 2022 00:01:01 +0000 https://ohcdphila.org/student-loan-processor-navient-agrees-to-1-8-billion-deal-with-states-over-predatory-practices/ Thirty-nine state attorneys general, including Josh Shapiro in Pennsylvania and Andrew J. Bruck in New Jersey, have reached a $1.85 billion settlement with student loan processor Navient over allegations that he allegedly directed borrowers to loans they could not repay and did not offer a lawyer. on more affordable repayment plans, officials said Thursday. Under […]]]>

Thirty-nine state attorneys general, including Josh Shapiro in Pennsylvania and Andrew J. Bruck in New Jersey, have reached a $1.85 billion settlement with student loan processor Navient over allegations that he allegedly directed borrowers to loans they could not repay and did not offer a lawyer. on more affordable repayment plans, officials said Thursday.

Under the terms of the regulation released Thursday, Wilmington-based Navient will write off the remaining balance on nearly $1.7 billion in subprime private student loan balances owed by more than 65,000 borrowers nationwide. This is debt that has likely hurt borrowers’ credit scores for years. And collectively, cancellation represents the greatest benefit to consumers in the agreement.

And an additional $95 million will be paid in restitution to approximately 350,000 federal student borrowers whose loans have been suspended for two consecutive years, resulting in higher loan balances. That equates to about $260 per borrower, attorneys general said.

According to Shapiro, Navient allegedly created risky predatory private loans to students attending for-profit schools and colleges, even though its executives knew many borrowers would be unable to repay the loans. Shapiro called the practice similar to how lenders in the subprime mortgage crisis offered homebuyers loans they couldn’t repay, leading to foreclosures and the 2008 financial collapse. .

Navient said in a statement that the allegations were without merit, he did not admit wrongdoing and he managed to save legal costs. “The agreements include an express denial of claims and of any harm caused to the borrower by the company,” Navient said.

“These lawsuits began more than eight years ago, but we are still years away from our day in court,” Navient officials added. “We made this decision to avoid the burden, expense, time and distraction it would take to resolve these claims through litigation and state-by-state investigations.”

Last year, Navient waived its student loan processing contract with the US Department of Education. More than five million borrower accounts will soon be transferred to Maxim, a competing government loan servicing company.

Federal student loan borrowers are expected to resume payments in May 2022 after a hiatus due to the pandemic.

Neither Navient nor state attorneys general can cancel federal student loans. But as part of the agreement announced Thursday, Navient will cancel certain eligible private loan balances for borrowers who have been in default.

Almost all of these private loans were issued between 2002 and 2010 by Sallie Mae, which spun off its student loan services by creating Navient in 2014, the company said. Borrowers do not have to do anything to qualify for the relief. Navient or the settlement administrator will send a letter by July 2022 to each eligible private borrower, according to a press release outlining the settlement and attorneys general who participated in a nationwide press conference on Zoom.

The 45-page settlement with multiple provisions is the latest action to reduce the country’s nearly $1.8 trillion student loan debt, which experts say has forced young adults to put off buying a car. house or even to get married. In many cases, this debt has complicated the retirement plans of older Americans, who are returning to school or have enlisted as loan co-signers. The Trump and Biden administrations have delayed federal student loan repayments due to the pandemic, but borrowers have been pushing for a more permanent solution.

“We see steps in the right direction,” said Fred Amrein, managing director of PayFORED, a student loan solutions provider in Newtown Square. But he said the Navient settlement “doesn’t even reach 1%” of the $1.8 trillion student loan debt.

In a statement, Shapiro said that “Navient repeatedly and deliberately put profits ahead of its borrowers – it engaged in deceptive and abusive practices, targeted students it knew would struggle to repay their loans and placed an unfair burden on people trying to improve their lives through education.

He added that the investigation of Navient revealed “Navient’s intention to mislead borrowers, which prevented them from repaying their loan principal and led many of them to accumulate more debt and to pay endless interest”. These are students who have taken out federal student loans.

In Pennsylvania, the deal’s big debt forgiveness looks like this: 2,467 Pennsylvanians will receive $67 million in private debt forgiveness, an average of $27,158 per borrower, according to the attorney general’s office.

In addition, 13,000 Pennsylvania student borrowers will receive $3.5 million in forbearance restitution payments, or about $260 on average.

New Jersey Acting Attorney General Bruck said New Jersey student borrowers would receive more than $60 million in debt forgiveness as part of a settlement with Navient that resolves a 2020 issue. trial filed by the state. The lawsuit alleged that Navient engaged in deceptive conduct and misrepresentation when servicing thousands of student loans to New Jersey consumers over the past decade – boosting the company’s profits at the expense of borrowers by difficulty.

The New Jersey portion includes approximately $57.2 million in debt forgiveness and $3.1 million in restitution payments to borrowers, as well as a $3 million payment to the state.

A separate lawsuit against Navient by the Consumer Financial Protection Bureau, a federal agency, is pending, and the claims are similar to lawsuits by state attorneys general.

“We are convinced that we will prevail in the trial against the CFPB. After years of investigations, findings and litigation, the CFPB has failed to produce a single borrower to substantiate its claims because they do not exist,” Navient said in its statement. More information on the CFPB suit is available at navient.com/legalfacts.

In addition to Navient, FedLoan, part of the Pennsylvania Higher Education Assistance Agency (PHEAA) in Harrisburg, will also exit its federal student loan servicing business. It came after US Senator Elizabeth Warren (D., Mass.) lambasted PHEAA CEO James Steeley for allegedly misleading her committee during a hearing in April. In July, FedLoan said it would not renew its federal loan servicing contract when it expires in December.

Mike Pierce, executive director of the Student Borrower Protection Center, welcomed the case:

“Finally, student borrowers who had been forced to bear the burden of dangerous and predatory private student loans made by Sallie Mae and held by Navient will finally be debt free. Today’s action is a clear victory for many of the millions of borrowers whose pain Navient and Sallie Mae has shamelessly turned into profit.

“Borrowers may not be able to take advantage of Navient CEO Jack Remondi’s $8 million salary, his three homes, or his use of the company’s private jet. But they can rest a little easier. knowing that a measure of justice has been served,” he said.

Alexis Miller, 37, graduated in 2007 from Drexel with a nursing degree and about $61,000 in school loans.

“I funded my entire degree with loans, and many, many nurses do the same,” Miller said at a press conference with Shapiro and John Fry, president of Drexel University, Thursday after- midday.

She said Navient moved her away from income-driven repayment plans and instead into forbearance, where her payments were suspended and her debt soared to more than $80,000. “I knew in my gut that it wasn’t right. Then they started harassing me, calling my bosses at work. It was embarrassing.”

Under the settlement with Navient, its debt will be forgiven from June. To find out if you are eligible for the settlement agreement, see the terms described at navientagsettlement.com.

Borrowers with Navient debt should not stop making payments until it is determined that their debt is eligible for settlement, experts warn.

All payments made between June 30, 2021 and cancellation will be refunded,” said Anna Helhoski, student loan expert at NerdWallet. Federal student loan borrowers eligible to receive restitution should update their contact information at studentaid.gov to make sure they get more information this spring.

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Council Connection ”The Bronx Tragedy Shows Why Workers Must Fight For Safe, High Quality And Affordable Housing For All https://ohcdphila.org/council-connection-the-bronx-tragedy-shows-why-workers-must-fight-for-safe-high-quality-and-affordable-housing-for-all/ Tue, 11 Jan 2022 22:03:53 +0000 https://ohcdphila.org/council-connection-the-bronx-tragedy-shows-why-workers-must-fight-for-safe-high-quality-and-affordable-housing-for-all/ At least 17 people have died, including eight children, after a Bronx apartment building caught fire in New York’s deadliest blaze in decades on Sunday. It comes just days after a fire in a overcrowded row house in philadelphia killed 12. Socialist Alternative and I extend our deepest condolences and solidarity to the families and […]]]>

At least 17 people have died, including eight children, after a Bronx apartment building caught fire in New York’s deadliest blaze in decades on Sunday. It comes just days after a fire in a overcrowded row house in philadelphia killed 12.

Socialist Alternative and I extend our deepest condolences and solidarity to the families and individuals who have suffered unimaginable losses.

These tenants deserved safe, quality and affordable housing. Far from being inevitable, these tragedies – like the Grenfell building fire in 2017 in London – are the result of the deep and endemic housing injustice facing workers and the poor under global capitalism. .

The Bronx building, called Twin Parks North West, is home to some of New York’s poorest working-class residents, many of whom are African immigrant families who depend on Section 8 housing vouchers and aid. to rent. A faulty radiator in one of the apartments was the apparent source of the fire. As the family fled, the door to their apartment did not close and thick smoke filled the hallways as other residents attempted to escape. This apartment door was supposed to close automatically, according to a New York City law passed in 2018 requiring all building doors closing automatically by July 2021.

Records show that tenants at Twin Parks North West have repeatedly reported over the months and years that their the apartments had no heating, and that they had faulty radiators and broken ventilation systems. Many residents reported that fire alarms were often heard five or six times a day, so they were often ignored. Building had no fire escapes or sprinklers – according to Fire Marshal Daniel Nigro, the building “was potentially constructed outside of New York City’s fire code.” There have been more than two dozen violations and complaints filed by residents, including complaints of cockroaches, rats and mice, water leaks and multiple cases of non-functional elevators. Problems in the building were ongoing despite previous owners receiving $ 25 million in state loans for building repairs in 2013.

New York Mayor Eric Adams said his takeaway of the Bronx fire was to “close the door”, which seems to imply that the family of eight who fled for their lives are at fault for not closing a door that should have been automatically closed by law. new York City. Mayor Adams has launched an “educational campaign” to teach children to keep doors closed. This patently absurd and dishonest insistence on this human tragedy exposes Adams’ real political agenda. Adams ran for office on a platform that promised to build more overcrowded “micro-units” and also pledged to convert 25,000 hotel rooms into apartments which experts say would not be able to meet zoning or conversion requirements.

The North West Twin Parks the building was acquired in 2020 by LIHC Investment Group, Belveron Partners and Camber Property Group in a $ 166 million deal for eight rent-regulated buildings in the Bronx. They bought the building from an international real estate group led by Rubin Schron, a real estate mogul with a net worth of over $ 3 billion. Camber Property Group co-founders are Rick Gropper, a member of New York Mayor Eric Adams’ transition team for housing issues, and Andrew Moelis, son of Ron Moelis, an affordable housing developer and donor to Democrats. Camber Property Group is promoting itself as a provider of ‘quality’ affordable housing, but rather than making desperately needed repairs to decades-old buildings like Twin Parks North West, Gropper and Moelis have spent over $ 260 million in 2021 to add affordable housing buildings to their business. investment portfolio.

A few days before the Bronx fire, Andrew Gerdon of LIHC Investment Group, another of the owners, said naked in an interview, “There are very few asset classes with more proven resilience and endurance than affordable housing and competition for offers in the five boroughs remains extremely high. This is the sickening reality of the capitalist system. The few affordable apartment buildings that still exist in major cities are being sold off by corporate politicians (most often from the Democratic Party) to wealthy investors, whose very intention is to keep the housing as cheap as possible. , by cutting as many corners as underfunded. , weakened government oversight will allow it. The lives of struggling, low-income tenants are reduced to mere stock market assets generating additional profits for the ultra-rich.

Housing will never be high quality or affordable for most of us as long as it exists to line the pockets of the rich. The tragedy of the Bronx fire should remind us of how urgently we must organize to fight back. It’s also a reminder that working people just can’t kid themselves about the Democratic Party and political friends of big business and the rich. The only way forward is to create strong, independent, mass movements of tenants, unions and ordinary workers to demand safe, high quality and affordable housing for all at all times.

Mass tenant movements can and should demand that their buildings, and the parasitic investment companies that own them, be taken into public ownership where tenants can exercise democratic control over their homes and communities. We need to tax the richest corporations to rapidly develop affordable, high-quality public housing on a permanent basis, and to update all existing affordable housing to meet the highest safety standards. On top of that, tenants around the world need seamless universal rent control, such as the bill that my council office introduced and is organizing to win alongside simple popular tenants.

the brave struggle of hundreds of low income tenants, Black and brown seniors and immigrant families at Rainier Court Apartments in Seattle show what is possible. These tenants, alongside my Council office and community supporters, including Socialist Alternative, forced their landlord (SEED) to reverse the huge 2021 rent increases for the four buildings – a massive victory. My office has been organizing alongside Rainier Court tenants for almost four months now, and they still face many of the same issues of infestations, widespread and longstanding lack of repairs, and shockingly substandard conditions reported. by tenants of Twin Parks North West.

Despite the enormous odds, the Rainier Court fight, as well as our fight in Seattle alongside hundreds of working class tenants, unions and tenant organizations for tenant rights laws and increased tenant protection, shows that when tenants organize and fight, they can win. The horrific tragedies of Philadelphia and the Bronx make it clear what is at stake for working people every day under capitalism, and why we must fight to win a socialist world.

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New year, new financial goals https://ohcdphila.org/new-year-new-financial-goals/ Fri, 07 Jan 2022 19:15:28 +0000 https://ohcdphila.org/new-year-new-financial-goals/ Now that we’re in a new year, it’s time to start thinking about how we can improve for the future and do things differently. One of the best ways to prepare for success in 2022 (and beyond) is to explore ways to put your finances in the best possible shape. In one new study On […]]]>

Now that we’re in a new year, it’s time to start thinking about how we can improve for the future and do things differently. One of the best ways to prepare for success in 2022 (and beyond) is to explore ways to put your finances in the best possible shape. In one new study On adult spending habits in PA, NJ, DE and MD, residents are looking for a financial reset. Of those polled, 56% say they are likely or extremely likely to make financial resolutions in 2022.

Budgeting is the number one financial resolution in 2022

As goals and resolutions come and go, a New Year means a new opportunity to take control of your finances by taking action.

In the recent study, residents were asked to choose their top 3 financial resolutions as the New Year approaches. Setting and sticking to a monthly budget was the most popular response among residents, selected by 39%, followed by paying off 37% credit card debt and limiting spending on non-essential activities, like eating. in the restaurant, which was a priority for 33%.

Budgeting was a higher priority for women in the region than for men, with 44% of women choosing it among their top 3 resolutions, compared to 32% of men. Meanwhile, paying off credit card debt and limiting non-essential spending were higher priorities for men than women (40% vs. 35% and 36% vs. 30%, respectively).

Limited - PFCU - New Years Chart

Philadelphia Federal Credit Union: Vacation Spending and Saving Habits Among Metro Philadelphia Residents, November 2021

3 tips to put your finances on the path to success in 2022

If you’re starting the New Year with a list of resolutions, consider adding these financial tasks:

1. Review and update your annual budget
New year, new budget. By performing an annual review, you can create and / or reassess your overall financial goals. This annual review is different from your more frequent weekly financial checks because you are able to set long-term goals for the next 12 months. If you’ve never set financial goals, just think of them as what you hope to get out of your money each year. These goals can be as simple as paying your bills on time each month, or as complex as creating a savings plan to help you buy your dream home. Your annual budget review should also compare what you hoped to spend, how much you actually spent, and / or if there are any areas of your budget that you can reduce.

You should also use your annual budget audit as an opportunity to assess and allocate your finances for future big events, such as a wedding, home renovations, or if you are planning on expanding your family. January is also the time when many companies begin open registrations for health and dental / optical, 401K, and retirement benefits, which you can choose to participate in.

While financial goals can be different from person to person, no matter what they are, they will hopefully end up with the same result: helping you understand why you are spending your money a certain way.

2. Start the year off right with savings
Now that you’ve reviewed your budget, looked for ways to cut out the things you don’t need, and have a better understanding of your new financial priorities, you can start thinking about a savings plan. By saving early in the year, you are creating a positive habit. Once you start putting money aside, you won’t stop. Here are some helpful tips for starting a savings account / emergency fund:

  1. Calculate a dollar amount or percentage of your income each month that you can afford to put into savings.

  2. Take that amount from your paycheck each month and deposit it straight into your savings account, or put it out of sight but somewhere you’ll remember its location.

  3. Don’t think of these funds as extra money lying around that can be used for anything.

  4. Do not use your savings fund unless it is a real emergency, or for the reason you opened the savings account in the first place.

Starting the year saving will hopefully put you on the right track to securing your finances in 2022.

3. Create a suite of personal finance resources to reference in the blink of an eye
Make sure you have easy access to the financial information that will come in handy when you need it most. You need to have a set of resources that will help you answer all of your personal finance questions quickly and easily. In the Education section From the PFCU website, you can find a wealth of resources to help answer many of your most pressing financial questions, including:

  1. Credit reports

    and advice to make sure your credit is in the right place and / or how to get there.

  2. The Clarifi information library
    can help you on the path to creating a healthy financial life.
  3. Calculators
    to accurately calculate your taxes, mortgages and real estate, investment and retirement, etc.
  4. Webinars, you can either attend or watch a

    registration

    de, which offer detailed information on various financial topics, such as: saving and planning for your children, money management and school fees.

  5. Moneyline Blog, which has articles that can give you advice on a number of topics including: budgeting for a wedding, paying for college, how not to break the bank on vacation meals and shopping, and more.

These resources can also be physical files that you have printed and stored somewhere to be removed when you need them. It’s a good idea to have them on hand so you can have peace of mind knowing that if a complicated financial question were to arise, you would be able to easily find the answer. PFCU also offers additional resources and information to its members, and will work with them to achieve their financial goals. For more information visit pfcu.com.

By using these tips, we hope that you will establish and maintain good financial habits that will accompany you in all aspects of your life.

To see the full research report, visit the PFCU website.


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Why Trevian Capital when everyone’s ready? Trevian Capital funds 14 bridging loans in nine states for a total of $ 120,000,000 in the last 45 days of 2021 https://ohcdphila.org/why-trevian-capital-when-everyones-ready-trevian-capital-funds-14-bridging-loans-in-nine-states-for-a-total-of-120000000-in-the-last-45-days-of-2021/ Thu, 06 Jan 2022 19:42:00 +0000 https://ohcdphila.org/why-trevian-capital-when-everyones-ready-trevian-capital-funds-14-bridging-loans-in-nine-states-for-a-total-of-120000000-in-the-last-45-days-of-2021/ Why Trevian Capital when everyone’s ready? Tweet this Gainesville, Georgia – $ 4,850,000 – Acquisition, Multifamily with added value Nashville, Tennessee – $ 10,875,000 – Time-sensitive, multi-family, value-added acquisition Phoenix, Arizona – $ 39,975,000 –Partner buyout, Capex completion, value-added multifamily Philadelphia, Pennsylvania – $ 4,445,000 – Acquisition, multi-family rental Miami, Florida – $ 2,725,000 – […]]]>

Gainesville, Georgia$ 4,850,000 Acquisition, Multifamily with added value

Nashville, Tennessee$ 10,875,000Time-sensitive, multi-family, value-added acquisition

Phoenix, Arizona$ 39,975,000Partner buyout, Capex completion, value-added multifamily

Philadelphia, Pennsylvania$ 4,445,000 – Acquisition, multi-family rental

Miami, Florida$ 2,725,000 – Acquisition, Multifamily with added value

Oklahoma City, alright$ 4,900,000 – Refinancing, recapitalization, Capex completion, value-added multi-family

Vero Beach, Florida$ 1,475,000 – Self-service, time-sensitive, acquisition and value-added storage

Miami, Florida$ 2,700,000 – Acquisition, Multifamily with added value

Miami, Florida$ 3,200,000 – Acquisition, Multifamily with added value

Hagerstown, Maryland$ 3,300,000Refinancing, Capex Plan, Multifamily with added value

Girard, Ohio$ 1,870,000 – Refinancing, partner buyout, value-added multifamily investment plan

Nashville, Tennessee$ 16,500,000 – Time-sensitive acquisition, value-added retail

Kingston, New York State$ 6,050,000 – Time sensitive acquisition, investment plan, multi-family with added value

Capital of Treviso (www.treviancap.com) is a balance sheet lender providing first mortgage bridging loans on commercial real estate nationwide, with an emphasis on ease of use, flexibility, limited structure, and reasonable and timely communication . Trevian Capital specializes in short-term, value-added multi-family and commercial real estate financing where expertise, attention to special circumstances, certainty of execution and quality service are essential.

Contact: Michael hoffenberg (212) 376-5636; [email protected]

SOURCE Trevian Capital


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Dispatch and OAR tour 2022: Where to buy tickets, times, locations https://ohcdphila.org/dispatch-and-oar-tour-2022-where-to-buy-tickets-times-locations/ Sun, 02 Jan 2022 16:30:00 +0000 https://ohcdphila.org/dispatch-and-oar-tour-2022-where-to-buy-tickets-times-locations/ Mail and RAME are teaming up for a national tour this summer. The two groups have each given sold-out concerts at Madison Square Garden, and will now be joined by the Music by Robert Randolph and G. Love on some shows. Although Dispatch and OAR have shared stages before, this summer tour will be the […]]]>

Mail and RAME are teaming up for a national tour this summer.

The two groups have each given sold-out concerts at Madison Square Garden, and will now be joined by the Music by Robert Randolph and G. Love on some shows.

Although Dispatch and OAR have shared stages before, this summer tour will be the first time the two roots rock groups have embarked on a full-fledged tour together. It includes concerts in Philadelphia (August 18) and in New Jersey (August 28).

Now here’s what you need to know to see Dispatch and OAR live in the summer of 2022.

Where can I buy tickets for OAR and Dispatch?

Tickets to see the co-headliners on their summer tour can be found at all verified ticketing sites.

For the best prices, we suggest you review StubHub, Lively seats, Ticketmaster, SeatGeek and MegaSeats.

Where do OAR and Dispatch play on tour?

The two groups begin their summer tour July 15 in Mesa, Arizona. Following their inaugural show, they will perform nationwide, extending the summer season through September, where they will end on September 10 in Irving, TX.

If you’re looking for the show that’s closest to you, we’ve listed them all with dates, locations, and information on where to buy tickets below.

New music from OAR and Dispatch

Both groups recently released new tracks to add to their epic set lists this summer.

OAR dropped reggae-inspired single “Living” in November. They are currently working on their next album.

Their touring counterparts, Dispatch, released their new album “Break Our Fall” last May. The uplifting title song can be heard here.

RELATED STORIES ABOUT LIVE EVENTS:

Foo Fighters Concert Tickets Now On Sale: Where To Buy, Prices, 2022 Tour Schedule

What is Vivid Seats? Is it legitimate? Do they have fees? Here is everything you need to know

Robert Plant & Alison Krauss Announce 2022 Tour: Where To Buy Tickets, Dates, Schedule, New Album

Please subscribe now and support the local journalism YOU rely on and trust.

Matt Levy covers the live entertainment industry, writing about upcoming concerts, festivals, shows and events. He can be contacted at mlevy@njadvancemedia.com.



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Councilmember Derek Green hopes to create a public bank for Philadelphia. Here is how it might work. https://ohcdphila.org/councilmember-derek-green-hopes-to-create-a-public-bank-for-philadelphia-here-is-how-it-might-work/ Fri, 31 Dec 2021 10:00:54 +0000 https://ohcdphila.org/councilmember-derek-green-hopes-to-create-a-public-bank-for-philadelphia-here-is-how-it-might-work/ City Council Member Derek S. Green has worked for more than four years to establish a public bank in Philadelphia, with the goal of helping underprivileged businesses access credit and manage the city’s money in the city. public interest. Thanks in part to limitations in state law, the proposal has progressed in spurts. Green’s latest […]]]>

City Council Member Derek S. Green has worked for more than four years to establish a public bank in Philadelphia, with the goal of helping underprivileged businesses access credit and manage the city’s money in the city. public interest.

Thanks in part to limitations in state law, the proposal has progressed in spurts. Green’s latest plan, which gained committee approval in December, would first establish a Philadelphia public finance authority that could help underserved businesses immediately seek loans from private lenders and later help establish a separate public bank to hold city deposits.

Philadelphia has long struggled to increase the participation of minority and women-owned businesses in public projects, and Green said it was essential to put in place the financial authority before funding for the Federal Bill on the $ 1 trillion infrastructure adopted this year will only be distributed locally. .

“Even if a company gets a contract, it will need to have access to credit in order to be able to hire more employees and have additional cash flow,” he said in an interview. “And without having access to credit, they won’t be able to do the job. “

Green is hoping to cross the legislative finish line on his bill before Mayor Jim Kenney unveils his budget proposal in March. The bill is awaiting final approval by the entire Council, but could be amended before going ahead.

Here’s what you need to know about Green’s plan and how public banks work in Philly:

A public bank is a taxpayer-owned financial institution that holds and lends city money instead of a private bank. Proponents say they make it easier for taxpayers to use their own money to invest in their communities and point out that private banks have a well-documented history of racial discrimination. Critics say public banks are expensive to start up and could open taxpayer funds to tax mismanagement caused by political influence.

For Green, one of the main benefits would be having a financial institution that helps “hard-to-lend” businesses in low-income neighborhoods access credit, thereby reducing racial disparities in business ownership. Although 43% of Philadelphians are black, only 6% of the city’s businesses with employees are black. Likewise, the city’s population is 15% Latinos, but only 4% of businesses in Philadelphia with employees are Latino-owned.

“Many small businesses, especially black and brown businesses, don’t have friends or family who can say, ‘Hey, here’s X amount to help you start your business’ or,’ I’ll be a co-signer. “,” Green said in an interview.

Since the 19th century, public banks have been scarce in the United States, with the Bank of North Dakota, established in 1919, and the five-year-old Bank of America Samoa, the only major public banks currently in operation.

California recently passed a law allowing state municipalities to create public banks, and San Francisco has taken steps to become the first major US city to create one – if Philly doesn’t beat them.

Unlike California, Pennsylvania does not have legislation allowing cities to directly establish public banks, but Green’s proposal offers a potential workaround.

First, the city would create the Philadelphia Public Finance Authority, a city-controlled quasi-government entity that could issue letters of credit to secure loans to qualified businesses borrowing from private banks.

Later, Green said the city and the financial authority would work together to create a third entity that could directly receive and manage city funds. While state law does not allow cities to establish public banks, it does allow city-related organizations like the proposed Financial Authority to create new entities as special projects, and Green hopes that this will be the way forward for a future public bank.

The bank’s mission could be much broader than helping underserved businesses. The Bank of North Dakota, for example, provides student loans at attractive rates for state residents and for out-of-state natives attending school in North Dakota.

Under Green’s proposal, which is still subject to change, the authority would be overseen by a nine-member board of directors appointed by the mayor.

The board would then select a separate nine-member board that would lead the authority and manage all lending decisions.

Green would also subject the authority to the rules and regulations of the city’s ethics board, which otherwise would not have jurisdiction over the authority as it is a separate entity from the city. This, Green hopes, will avoid conflicts of interest and political influence.

The city can finance the authority in several ways, such as a direct injection of money from the general fund or the issuance of bonds.

And once the authority is funded, it will have options on how to manage its money. With a $ 50 million bond injection, for example, it could hold $ 25 million in reserves while using the remaining $ 25 million to support letters of credit for businesses.

Alternatively, the authority could seek an insurance policy to cover the risk of the credit it grants to businesses that would cost only a fraction of its portfolio, freeing up more of its money to help businesses.


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Scottsdale docs offer scholarships to medical students | neighbors https://ohcdphila.org/scottsdale-docs-offer-scholarships-to-medical-students-neighbors/ Thu, 30 Dec 2021 08:00:00 +0000 https://ohcdphila.org/scottsdale-docs-offer-scholarships-to-medical-students-neighbors/ Like many doctors, Dr Alyx Porter Umphrey and Dr Gregory Umphrey found themselves in huge debt after their medical school studies. “When we were done, we went to dinner and talked about it and we were like, what just happened to us? How did we get into this position? ‘ “Said Alyx. The Doctors of […]]]>

Like many doctors, Dr Alyx Porter Umphrey and Dr Gregory Umphrey found themselves in huge debt after their medical school studies.

“When we were done, we went to dinner and talked about it and we were like, what just happened to us? How did we get into this position? ‘ “Said Alyx.

The Doctors of Scottsdale have decided to do something to help future generations of doctors.

“After a lot of thought and hard work, we created ElevateMeD, something we wished we had,” says Alex. “We offer scholarships, mentoring, leadership development and financial wellness education to under-represented students. This is what we could have used as medical students and this is what we are giving to this next generation.

The average medical school debt per student is $ 269,000. The figure is higher in the specialty areas.

“Where the disparity really widens is when you start thinking about specialist care, because the residences are longer,” Alyx explained. “So the earning potential is further delayed as interest continues to accrue on that $ 269,000. You could talk eight years later before you can afford to make a payment.

She said that students from underrepresented backgrounds have higher debt rates when leaving undergraduate school and it’s even higher after medical school.

“The definition of underrepresented that we use provided by the National Institute of Health is one that identifies as Black, African American, Latino, Hispanic, Native or Native,” Alyx explained. “Specialties with shorter residences tend to attract more black and brown students because of the debt load.

“And many of these specialties – like family medicine and internal medicine – have programs that are out there where there are loan repayment options. So if you get into these specialties and practice in underserved areas, then they can help you pay off your debt. These programs disappear once you start looking for specialties. Already, in medicine at all levels, there are fewer under-represented physicians than what we see in the population.

Alyx said it was shocking to realize the number of students living below the poverty line in medical schools and the amount of credit card debt.

She said some doctors take 30 years to pay off their medical school debt. It took the Umphrey about eight years.

“We got great financial advice and that’s what got us to pay off the debt,” Alyx said. “A lot of doctors from under-represented backgrounds don’t have a parent, parent or doctor before them, they may ask, ‘How are you dealing with this? “What are you doing about it?” This is why this financial part is such an important part of our program.

The couple launched ElevateMeD in May 2019 and awarded the top 10 students $ 10,000 each in scholarships a year later. Their non-profit organization provides financial advice to beneficiaries.

“What I think is the most valuable part of our program is student access to executive coaching which includes financial planning and mentoring,” said Alyx. “That you can’t put a price.

“We’ve been able to grow because of generous donors and some pretty amazing business partners and grants,” Alyx said.

Their employers – Mayo Clinic and Barrow Brain and Spine – have been great sponsors, she said.

ElevateMeD is also the only nonprofit in Arizona to receive the Chick-Fil-A Inspiration Award which included $ 100,000.

“With what we received, we were able to grow in 2021, awarding $ 150,000 in scholarships,” said Alyx. “And we funded five returning scholars who had yet to graduate an additional year, adjusted our event in early October and awarded an additional $ 50,000 scholarship to a deserving student.

“To date, we’re at about $ 300,000 in terms of the amount of support we’ve provided over the past two years to a total of 20 students. “

ElevateMeD is made up of all volunteers. A careful selection process is followed to ensure that quality and integrity are used in the selection of fellows.

“We have deliberately chosen the schools that we have partnered with so that we can offer our scholarship program,” said Alyx. “We started with 10 schools based on board member alma maters and personal connections. In 2021, we have expanded to a total of 15 partner schools. In 2022, we will be able to develop further.

Applicants must be nominated by one of ElevateMeD’s partner schools and be a third or fourth year medical student who identifies as being from an under-represented background in medicine.

“You have to have a good academic record,” Alyx explained. “And then we have a video app that a student submits with a letter of recommendation from a faculty member. Thus, the students who are nominated in each of these individual schools compete with other students in their school. They are not necessarily competing nationally.

The goal is to eventually give full scholarships.

Alyx was born and raised in Scottsdale and attended Temple University School of Medicine in Philadelphia. She had a full undergraduate scholarship.

Greg is originally from Albuquerque, New Mexico, and is the middle child of two siblings. He started gymnastics at the age of 7 and received a full scholarship to UCLA where he competed in national and international competitions until 1996. He attended Howard University College of Medicine.

“Until I entered medical school, I had no debt,” said Greg. “I had to take loans from the government because my parents didn’t have the funds and I didn’t have the funds to pay for my medical education.

“So we pretty much had to withdraw the maximum amount. Over time, over the course of the four years, it builds up and builds up so that when I started my residency I had a significant amount. I did three years of orthopedic surgery at the Mayo Clinic and finally moved on to physical medicine, rehabilitation.

“Greg and I met during our residency at the Mayo Clinic in Minnesota,” Alyx said. “When we shared our stories and experiences, we learned that we both came from families that supported us emotionally but less financially. When it was time to enter medical school, we were both so grateful that we entered.

“For me, on the very first day, I separated from those who had financial support and those who didn’t. That day I had to make a very difficult decision and that decision was to take out a combination of private and federal loans. In the end, Greg chose the same.

“When we finally met, we got together, had these difficult discussions of what it would be like to combine households, we realized that together we owed over $ 500,000 in loans for medical schools. As a married couple, every decision we made we made with our debt in mind. And we have worked very hard to pay off that debt as quickly as possible. “

Today, Alyx is a neuro-oncologist treating brain cancer at the Mayo Clinic. Greg cares for spine patients and those with neck, back, joint and muscle skeleton problems. He also does sports medicine.

Their advice for students considering entering medicine?

“I just want to reassure them that there is a way to do it and to do it well and that there are organizations like ElevateMeD that are there to support them,” said Alyx.

“I echo that,” Greg said. “I think it’s important to pursue your dreams, to push and there are definitely the resources there. You just have to find them. We are one of those resources for these third and fourth year medical students. If we can garner enough support, financial aid and donations for our program, then we can help more students. Keep on going. Keep moving.

Information: elevatemed.org, info@elevatemed.org, or 480-269-5774


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Former Philly prison guard accused of smuggling phones and drugs to inmates now faces pandemic relief fund fraud charges https://ohcdphila.org/former-philly-prison-guard-accused-of-smuggling-phones-and-drugs-to-inmates-now-faces-pandemic-relief-fund-fraud-charges/ Tue, 28 Dec 2021 17:45:30 +0000 https://ohcdphila.org/former-philly-prison-guard-accused-of-smuggling-phones-and-drugs-to-inmates-now-faces-pandemic-relief-fund-fraud-charges/ A former Philadelphia prison officer accused earlier this year of smuggling inmates amid the city’s coronavirus lockdown faces new charges alleging he defrauded a pandemic relief program designed to help people small businesses in difficulty. Federal prosecutors said Haneef Lawton, 33, told the US Small Business Administration that he ran a farming business from his […]]]>

A former Philadelphia prison officer accused earlier this year of smuggling inmates amid the city’s coronavirus lockdown faces new charges alleging he defrauded a pandemic relief program designed to help people small businesses in difficulty.

Federal prosecutors said Haneef Lawton, 33, told the US Small Business Administration that he ran a farming business from his East Mount Airy home that employed more than 50 people and had an annual turnover of ‘approximately $ 145,000. His grant application under the SBA’s Economic Disaster Loan program earned him $ 10,000 in federal aid in June 2020.

Lawton allegedly submitted the grant with the help of another person, whom prosecutors have not publicly identified, months before his alleged involvement in the jail smuggling program, court records in both cases show.

In this case, Lawton – a 13-year veteran of the Department of Corrections who had been assigned to the Philadelphia Industrial Correctional Center on State Road – was charged with helping bring in nearly $ 70,000 in cell phones and narcotics. in the establishment between September 2020 and April of this year.

Investigators accused Lawton of accepting a total of $ 11,500 in bribes from an inmate who organized the contraband pipeline and his girlfriend who delivered the illicit cell phones and doses of Suboxone – a drug used to treat withdrawal from heroin which can also be used as an opioid itself. .

When the Corrections Department confronted him with the charges in May, Lawton opted to resign his post and forfeit his annual salary of $ 51,000, a city department spokesperson said. He was charged a few days later.

Lawton’s two co-defendants in that case pleaded guilty to conspiring to commit bribery and drug offenses, among other charges. Lawton is also expected to plead guilty in the case next week, according to Federal Court records.

The pandemic fraud charges against him were filed Monday through a criminal brief instead of an indictment – usually a sign that a defendant has already agreed to plead guilty. He could face up to an additional 10 years in prison if he did so.

Since the onset of the coronavirus, the federal government has approved $ 2.2 trillion in economic stimulus payments to individuals and business owners negatively affected by the pandemic.

But lawmakers have repeatedly raised concerns about fraud in these programs, especially those run by the SBA. Last month, the agency’s inspector general concluded in a report that it had distributed more than $ 3.1 billion in loans and $ 550 million in grants to potentially ineligible recipients between March and November of last year.

The study largely blamed a lack of scrutiny in examining candidates for help.

Court documents filed in the Lawton case highlight several red flags that may have raised concerns.

For example, in addition to claiming that he ran a farming business from his home in northwest Philadelphia, prosecutors said Lawton put his personal social security number on a section of his application that asked for a number. federal tax identification and requested that the grant money be deposited into a personal bank account.

He received the $ 10,000 he requested a day after submitting the request, according to the documents.

Lawton’s attorney, Andrew Montroy, did not immediately respond to calls for comment on Tuesday.


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Pretty Ricky’s Baby Blue Sentenced to 20 Months for COVID Scam https://ohcdphila.org/pretty-rickys-baby-blue-sentenced-to-20-months-for-covid-scam/ Thu, 23 Dec 2021 04:41:38 +0000 https://ohcdphila.org/pretty-rickys-baby-blue-sentenced-to-20-months-for-covid-scam/ The cute Ricky Baby rapper Blue Whoaaa received his spell for participating in a COVID-19 loan scam last year. According to court documents obtained by XXL On Wednesday (December 22), the South Florida rhymer, born Diamond Blue Smith, was sentenced to 20 months in prison on December 16 on one count of conspiracy to commit […]]]>

The cute Ricky Baby rapper Blue Whoaaa received his spell for participating in a COVID-19 loan scam last year.

According to court documents obtained by XXL On Wednesday (December 22), the South Florida rhymer, born Diamond Blue Smith, was sentenced to 20 months in prison on December 16 on one count of conspiracy to commit wire fraud. Baby Blue’s conviction comes more than a year after he was accused in October 2020 of filing bogus loan applications to obtain funds specifically allocated to small businesses under the Paycheck Protection Program (PPP) of United States via the Coronavirus Aid, Relief, and Economic Safety Act (CARES). Baby Blue has received over $ 24 million.

In addition, he must pay $ 1,111,345.23 in restitution and an assessment fee of $ 100.

Baby Blue Whoaaa, ​​who previously said he risked life in prison for the crime, was ordered to go “to the facility designated by the Bureau of Prisons or to the United States Marshal for that district” – “in the Southern District of Florida or a facility closest to Atlanta, Georgia” —by 2:00 pm on February 7, 2022.

As previously reported, Baby Blue appeared in court last October after being charged with federal charges. He was also about to use false documents to receive a PPP loan of $ 426,717 for his company Throwbackjersey.com LLC. An additional loan using forged documents was obtained for his company Blue Star Records, LLC in the amount of $ 708,065.

The rapper, who rose to popularity in the mid-2000s with his band Pretty Ricky and recently embarked on the Millennium Tour with his band mates Bow Wow, Ashanti and more, is said to have withdrawn $ 271,805 in loan funds. . He also reportedly purchased a $ 96,000 Ferrari, which was seized when taken into custody, along with the other lavish items he purchased with the loan funds.

Baby Blue Whoaaa didn’t work out on its own, however. A man by the name of Tonye C. Johnson has also been accused of participating in the scheme. Johnson is said to have obtained a PPP loan in the amount of $ 389,627 for his company Synergy Towing & Transport LLC. Forged documents were also used to obtain these funds.

The wire fraud scheme reportedly involved at least 90 fraudulent claims, most of which were submitted.

The federal government also claimed that Baby Blue recruited accomplices to apply for loans, which would allow him to receive illegal payments as compensation for the service. Eleven people were involved in the case.

The IRS Criminal Investigation (IRS-CI) in Miami and Cincinnati, the FBI in Miami and Cleveland, and the Office of the Inspector General of the Small Business Association (SBA-OIG) have completed the investigations of Baby Blue and Tonye C. Johnson.

See 22 police raids linked to hip-hop

These rappers have been in serious trouble with the police.


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8 Ways Small Businesses Can Save Taxes Before Year End https://ohcdphila.org/8-ways-small-businesses-can-save-taxes-before-year-end/ Mon, 20 Dec 2021 13:57:53 +0000 https://ohcdphila.org/8-ways-small-businesses-can-save-taxes-before-year-end/ If you run a small business, taxes are probably one of your biggest expenses. So while it’s important to be proactive and implement good tax planning strategies throughout the year, you can still take action now to save your business money before the end of the day. end of 2021. Here are eight. Accelerated depreciation […]]]>

If you run a small business, taxes are probably one of your biggest expenses. So while it’s important to be proactive and implement good tax planning strategies throughout the year, you can still take action now to save your business money before the end of the day. end of 2021. Here are eight.

Accelerated depreciation rules allow you to buy machinery, vehicles, computers, software, furniture and other types of capital goods, and instead of having to write off those expenses over time , you can immediately deduct up to $ 1,050,000 this year. And remember: you don’t even have to pay for this stuff right away. Even if you fund the acquisition, the rules allow you to claim the deduction as long as the item is put into service before the end of the year.

READ MORE: Small Businesses Have Until End of Year to Get $ 100 Billion in Expiring SBA Funds

Thanks to previous COVID-19 stimulus bills, you can personally take a $ 300 deduction ($ 600 for those filing jointly) on your tax return in addition to the standard deduction this year and your business can deduct up to. to 25% of its income for charitable contributions. After 2021, the additional personal deduction disappears and the business deduction reverts to 10% of your business income. Not only is this a great way to save money on your taxes, but, if you’re active with a charity, it can also remind potential donors to give before that benefit wears off.

Admit it: those long overdue debts likely won’t get paid. And that “good deal” you got five years ago is still in your warehouse picking up dust. Use those next two weeks to throw away the old inventory and remove those old bad debts from your books. By ceding and then writing off these assets, you can benefit from a tax deduction.

Depending on the amount of your employees’ contributions, you can set aside up to $ 58,000 in your 401 (k) pension plan this year. But be sure to speak to your benefits advisor to see how much you can contribute, as there are limits for “high paid” people. Depending on eligibility, you can also contribute up to $ 6,000 to a personal IRA. The good news is that you can wait until you have filed your business and personal income tax returns to make these decisions, so you still have a little bit of time left. And don’t forget the Roth After-Tax IRAs and even 529 plans, to which you can make after-tax contributions and grow them tax-free as long as the funds are used for higher education, private school, or college. religious school expenses.

Speaking of education, and thanks to COVID-related legislation, employers can now take deductions of up to $ 5,250 each year per employee until 2025 when they help pay off student loans and employees don’t. will not be imposed. Considering the huge student loan debt many young workers carry, a special payment or bonus for them before the end of the year would be very helpful – and could be a good perk to consider in order to attract new ones. workers.

While this credit expired for most employers at the end of September this year, you can still go back and change your 2020 and 2021 federal payroll tax returns if you think you qualify. To be eligible, you must prove that you have been totally or partially closed due to COVID or that you have experienced decreases in income of 50% (for the last three quarters of 2020 compared to the corresponding quarters in 2019) or 20 % (for the first three quarters of 2021 compared to the corresponding quarters of 2019). If you’re eligible, the credit is huge – up to $ 7,000 per employee per quarter in 2021, for example – and if the credit is more than the payroll taxes you paid then you can get the refund. Many payroll services offer assistance in calculating this credit.

READ MORE: How Philly Area Small Businesses Can Find The Most Valuable Resource: Employees

This additional credit has been extended until 2025 and can reduce your taxes by up to $ 9,600 per employee per year if you hire someone who is typically either out of the military, off welfare, out of jail. or unemployed for more than six years. months (there are other eligibility requirements). If you calculate the credit before hiring a new employee – as some of my clients do – you can also share the tax savings in the form of a hiring bonus, which could make the difference in attracting this great new talent.

Employers can still claim a tax credit for compensation paid to employees (up to a maximum of $ 511 per day) for time missed to get vaccinated, including extra time in the event of reactions. The presidential mandates of November 2021 now require employers to give this leave, but at least you can get reimbursed.

The good news is that some of these tax benefits extend beyond 2021. That’s why it’s important that you meet with your account at least twice a year, say in the spring and fall, to make sure you both stay one step ahead of the rules. and make the right decisions that will reduce your tax liability in the long run.

Gene Marks is a Chartered Accountant and owner of Marks Group, a technology and financial management consulting firm in Bala Cynwyd.


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