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DENVER, CO – The House today passed legislation to help Colorado families get back on their feet and recover from the pandemic.
“For many low-income Coloradans, the pandemic ripped away any savings they may have had and exacerbated long standing barriers that disproportionately prevent Black and Brown Coloradans from accessing banking services and credit,” said Rep. Jennifer Bacon, D-Denver. “Sadly, when there’s nowhere else for people to turn, predatory lenders and payday loan companies can take advantage of them and drive them further into debt and poverty. This bill creates the Colorado Household Financial Recovery Program to increase access to credit and low-interest loans for low-income Coloradans to help them pay for necessities without destroying their financial futures.”
“Access to capital or loans can be out of reach for many of the Coloradans who were also disproportionately impacted by the pandemic,” said Rep. Marc Snyder, D-Manitou Springs. “With the legislation we passed today, we will provide more Coloradans with access to the financial resources they need to overcome economic hardships and provide for their families.”
HB22-1359, sponsored by Representatives Jennifer Bacon and Marc Snyder, passed by a vote of 40-24. It creates the Colorado Household Financial Recovery Program to boost low-income individuals and households impacted by the pandemic or the economic conditions that have followed as a result. The program aims to make low-interest loans and credit more available to low-income families. Funded initially with $5.2 million in one-time funds, the program will partner with financial institutions to facilitate small low-interest loans to individuals and families impacted by the pandemic.
Many individuals do not have access to credit as a result of the financial pressures of the pandemic, while at the same time, many have drained their savings and are struggling to pay for necessities as pandemic induced inflation has led to rising costs for families. The legislation will assist Coloradans who face financial insecurity or a lack of access to financial and banking services obtain affordable loans.