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OP-ED: Reform Alternative Business Lending Practices to Protect Small-Business Owners

NNPA NEWSWIRE — Lenders have been requiring their small business borrowers, as a condition of receiving any short-term loans from them, to sign confessions of judgement that waive borrowers’ legal rights in any dispute with the lenders. Small business borrowers in other states have no right of notice if their assets are seized in New York under confessions of judgement and may not even realize if a New York judgement has been entered against them until their banks have seized their assets.

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Rep. Edolphus Towns is a board member of World Business Lenders. He represented the 10th and 11th congressional districts in New York from 1983-2013.

By Rep. Edolphus Towns

In my three decades representing parts of New York City in the House of Representatives, expanding economic opportunities for underserved communities was a top priority. That’s why, after I retired from public service, I joined the Board of World Business Lenders, an alternative business lender that provides desperately needed financing for businesses who want to grow or expand, leading to so many ancillary benefits to their local communities.

Unfortunately, not all alternative business lenders are created equal. In an industry that is not regulated, many of them are engaged in predatory practices, preying on the very customers they are committed to serving. Unlike World Business Lenders, which has voluntarily self-regulated by implementing a “best practices” lending program committed to offering fair and transparent loan terms to its borrowers, other alternative business lenders engage in opaque and occasionally destructive behavior that can lead to bankruptcy or worse for their own customers.

A critical tool for these predatory lenders has been the use of our state’s court system to seize the assets of small businesses whether located in New York or in any other state by employing legal instruments called “confessions of judgement.” These lenders have been requiring their small business borrowers, as a condition of receiving any short-term loans from them, to sign confessions of judgement that waive borrowers’ legal rights in any dispute with the lenders. Small business borrowers in other states have no right of notice if their assets are seized in New York under confessions of judgement and may not even realize if a New York judgement has been entered against them until their banks have seized their assets.

Alternative business lenders should make every loan transparent for their borrowers by clearly disclosing repayment terms, including interest rates, prepayment charges and by outlining clear payment schedules. Borrowers must be made aware of all fees and costs associated with their loans. Brokers and employees of alternative business lenders should be subject to background checks and continuing education requirements. Importantly, alternative business lenders should be required to offer each borrower terms not worse than the most favorable loan product for which he or she qualifies.

Alternative business lenders have nothing to fear from additional regulation. World Business Lenders is a successful company that profits even as we voluntarily abide by these terms, which protect customers. Unfortunately, in the political environment in Washington, it is unlikely that Congress will act to prevent predatory lenders from driving small business owners into bankruptcy. In the absence of leadership in Washington, it is time for Albany to act.

Rep. Edolphus Towns is a board member of World Business Lenders. He represented the 10th and 11th congressional districts in New York from 1983-2013.

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LIVE from the NMA Convention Raheem DeVaughn Says The Time Is Now: Let’s End HIV in Our Communities #2

Set against the backdrop of the NMA conference, Executive Officers from the National Medical Association, Grammy Award Winning Artist and Advocate Raheem DeVaughn, and Gilead Sciences experts, are holding today an important conversation on HIV prevention and health equity. Black women continue to be disproportionately impacted by HIV despite advances in prevention options. Today’s event […]

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Set against the backdrop of the NMA conference, Executive Officers from the National Medical Association, Grammy Award Winning Artist and Advocate Raheem DeVaughn, and Gilead Sciences experts, are holding today an important conversation on HIV prevention and health equity.

Black women continue to be disproportionately impacted by HIV despite advances in prevention options. Today’s event is designed to uplift voices, explore barriers to access, and increase awareness and key updates about PrEP, a proven prevention method that remains underutilized among Black women. This timely gathering will feature voices from across health, media, and advocacy as we break stigma and center equity in HIV prevention.

Additional stats and information to know:

Black women continue to be disproportionately affected by HIV, with Black women representing more than 50% of new HIV diagnoses among women in the U.S. in 2022, despite comprising just 13% of women in the U.S.

Women made up only 8% of PrEP users despite representing 19% of all new HIV diagnoses in 2022.

● Gilead Sciences is increasing awareness and addressing stigma by encouraging regular HIV testing and having judgment-free conversations with your healthcare provider about prevention options, including oral PrEP and long-acting injectable PrEP options.

● PrEP is an HIV prevention medication that has been available since 2012.

● Only 1 in 3 people in the U.S. who could benefit from PrEP were prescribed a form of PrEP in 2022.

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TRUMP: “Washington, D.C. is Safe”

BLACKPRESSUSA NEWSWIRE — President Trump, who typically travels with a full contingent of high-level protection, insinuated that he finally felt safe enough to go to dinner in the District of Columbia. “My wife and I went out to dinner last night for the first time in four years,” said the nation’s 47th president.

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Photo: iStockphoto / NNPA.

By Apriil Ryan
BlackPressUSA Washington Bureau Chief and White House Correspondent

“Washington, D.C. is safe,” President Trump declared from the Oval Office today. Those words came while Trump was hosting Ukraine’s President Volodymyr Zelenskyy. During the question-and-answer session, which primarily focused on a peace deal in the Russian-Ukrainian war, Trump explained, “You did that in four days.” He was speaking of how fast the National Guard quelled the violence in what was once called Chocolate City.

The President deployed the National Guard to D.C. a week ago, to a city with reduced crime rates over the previous year. Violent crime dropped by 26%, marking the lowest level in 30 years. Homicides also fell by 11%.

President Trump, who typically travels with a full contingent of high-level protection, insinuated that he finally felt safe enough to go to dinner in the District of Columbia. “My wife and I went out to dinner last night for the first time in four years,” said the nation’s 47th president.

Trump reinforced his claim about the newly acquired safety in D.C. by relaying that a friend’s son is attending dinner in D.C., something he would not have done last year.

After the president finished his comments, a reporter/commentator in the room with close connections to Marjorie Taylor Greene jumped into the high-level conversation to affirm the president’s comments, saying, “I walked around yesterday with MTG. If you can walk around D.C. with MTG and not be attacked, this city is safe.”

That reporter was the same person who chastised President Zelenskyy months ago during his first Oval Office meeting with Trump for not wearing a business suit. Zelenskyy, a wartime President, has been clad in less formal attire to reflect the country’s current war stance against Russia.

Without any sourcing, President Trump also said, “People that haven’t gone out to dinner in Washington, D.C., in two years are going out to dinner, and the restaurants the last two days have been busier than they’ve been in a long time.”

The increase in policing in Washington, D.C. is because a 19-year-old former Doge employee was carjacked in the early hours of the morning recently.

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Rising Energy Costs Weigh Heaviest on Black Households

BLACKPRESSUSA NEWSWIRE — For many African American families, the cost of keeping the lights on and homes heated or cooled is not just a monthly bill — it’s a crushing financial burden.

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Rising Electricity Utility Prices and Energy Demand (Photo by Douglas Rissing)

By Stacy M. Brown
Black Press USA Senior National Correspondent

For many African American families, the cost of keeping the lights on and homes heated or cooled is not just a monthly bill — it’s a crushing financial burden.

A new national study from Binghamton University and California State University, San Bernardino, finds that Black households spend a far larger share of their income on energy compared to white households, even when income levels are the same. “We often say that African Americans suffer more, but we often blame it just on income. And the reality is, there is something more there,” study author George Homsy, associate professor at Binghamton University, wrote. “It’s not just because they tend to be poor. There is something that’s putting them at a disadvantage. I think what happened is it happens to be where they live.” The study, published in Energy Research & Social Science, analyzed 65,000 census tracts across the United States. It found that while the average American household spends about 3.2% of income on energy bills, households in the majority African American census tracts spend an average of 5.1%.

Homsy and researcher Ki Eun Kang point to the age and condition of housing stock, along with lower homeownership rates, as key drivers. Their research concludes that “energy burden is not simply a matter of income or energy cost but also race, which might be driven by place.” Older, less energy-efficient housing and high rental rates in Black communities mean residents often cannot make upgrades like improved insulation or new appliances, locking families into higher bills.

Tradeoffs and Health Risks

The consequences go beyond money. Families forced to spend 10% or more of their income on energy — what experts classify as “unmanageable” — may cut back on food, medicine, or other essentials. More than 12 million U.S. households report leaving their homes at unsafe temperatures to reduce costs, while millions more fall behind on utility bills. The health effects are severe. High energy burdens increase risks of asthma, depression, poor sleep, pneumonia, and even premature death. The issue is especially acute for African Americans, who are disproportionately exposed to housing and environmental conditions that amplify these risks.

Washington, D.C.: A Case Study

In Washington, D.C., the problem is particularly stark. A recent analysis by the Chesapeake Climate Action Network (CCAN) shows that SNAP-eligible households spend more than 20% of their income on energy bills. Across the metro area, nearly two-thirds of low-income households devote over 6% of their income to energy, and 40% face what researchers call a “severe financial strain,” paying more than 10%. Pepco, the District’s primary electricity provider, has implemented three consecutive annual rate hikes, pushing the average household bill to $114 per month as of January 2025. Shutoffs have followed — nearly 12,000 customers lost service in 2024, with disconnections doubling after a summer rate hike. Washington Gas has also sought a 12% rate increase and pushed a controversial $215 million pipeline replacement project, rebranded as “District SAFE.” The plan could ultimately cost D.C. households an additional $45,000 each over several decades, or nearly $1,000 annually added to bills.

Historical Roots

Researchers argue that these inequities are not accidental but rooted in history. The ScienceDirect study reveals that African American communities living in formerly redlined neighborhoods continue to face disadvantages today — from poor housing quality to higher climate risks. Homsy says policymakers must make targeted efforts. “It is harder to get to rental units where a lot of poor people live,” he noted. “We need to work harder to get into these communities of color.”

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