Is Personal Insurance Federation of California Lobbying Against COIN Transparency?

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Earlier today, 18 prominent California nonprofits called on the Personal Insurance Federation of California to support transparency in a key insurance reinvestment program- the California Organized Investment Network.

Similar to the Community Reinvestment Act for banks, COIN is an avenue for insurance companies (who collect over $250 billion in premiums from California consumers every year) to invest in California communities- especially low income communities.

COIN was created in 1996 as an alternative to legislation that would have mandated a CRA type requirement on insurance companies.  However, the program is set to expire in January 2017.

AB 2728, (Atkins) would reauthorize COIN, however, the current version of the bill doesn’t include the “data call” which is the mechanism requiring insurers to report on their investments in California communities (or lack thereof).

In response, 18 organizations sent a letter to Speaker Emeritus Atkins, urging her to include the data call in AB 2728.

You can read more about COIN and the data call here: Nonprofit Leaders Call on Insurance Lobbying Group to Support Transparency in COIN Reinvestment Program

You can also read an OpEd about COIN and the importance of the data call here: Insurance Industry Happy to Receive, But Not to Give

 

 

 

Small Business Lending in California: Banks Still Aren’t Lending, Esp. to Minority and Women Small Biz Owners

CRC recently released its fourth report focused on small business lending, entitled: Small Business Access to Credit- The Little Engine that Could: If Banks Would Help.

Why does CRC care if the largest banks are lending to small businesses, especially those owned by women, Latinos, and African-Americans?

Beyond CRC’s mission of promoting equal and fair access to credit for low income communities and communities of color, and beyond the fact that demographics are changing rapidly in California, there are other reasons why access to small business loans is particularly important:

  • Minority-owned and women-owned businesses are more likely to hire people from their local communities;
  • Small businesses are a wealth-building tool;
  • Strong small businesses help strengthen local business districts; and
  • Small businesses are estimated to create two out of every three new jobs in the U.S.

To review a few figures from our December 2013 report, visit our press release:  New Report Finds 60% Drop in Small Business Lending

You can read CRC’s previous 3 reports looking at this issue here:

2010: Small Business Access to Credit

2007: Small Business Access to Credit

2003: Small Business Access to Credit