Governor Kathy Hochul announced the expanded $55.5 million Small Business Revolving Loan Fund 2 is available to provide shorter term microloans and regular loans to address inequitable capital access by bridging the financing gaps facing new companies, under-banked communities and small businesses.
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Part of New York’s broader State Small Business Credit Initiative efforts led by Empire State Development, this expanded program will leverage financial loan capital to drive economic activity by expanding access to short-term loan capital for small, micro and socially and economically disadvantaged individual-owned businesses that have faced historical barriers to obtaining credit or adequate loan terms.
This builds on the success of the first round of the Small Business Revolving Loan Fund that launched in 2010 with $25 million in funding that achieved nearly $280 million in loans issued to small businesses.
Small businesses may apply for lending through a participating Community Development Financial Institution (CDFI).
Program lenders use the capital from the program along with matching capital from other resources to further enhance available funding for small businesses. Typical uses of funds are working capital, acquisition and/or improvement of real property, acquisition of machinery and equipment, and in some cases refinancing of debt obligations.
Microloans (loans between $500 and $25,000); and regular loans (typically as large as $250,000 or more depending upon the lender) are available with terms based upon each lender’s individual offerings.
Program lenders are the primary point of contact for borrowers, and each have their own loan application process and loan products. Competitive interest rates, terms and fees are determined by the individual program lenders. Lenders are responsible for applications and credit decisions.
Participating lenders for this program are:
Adirondack Economic Development Corporation: $1,000,000
Service Area: Essex, Franklin, Hamilton, Jefferson, Lewis, St. Lawrence, Fulton, Herkimer, Oneida, Oswego, Saratoga, Warren, Washington counties
BOC Capital Corp.: $2,000,000
Service Area: Queens, Kings, Richmond, New York, Bronx, Westchester, Suffolk and Nassau counties
Harlem Entrepreneurial Fund: $1,500,000
Service Area: Queens, Kings, New York and Bronx counties
NYBDC (dba Pursuit Lending): $3,000,000
Service Area: Statewide – all counties
NYBDC Local Development Corporation (dba Pursuit Lending): $3,000,000
Service Area: Statewide – all counties
Renaissance Economic Development Corporation: $4,000,000
Service Area: Bronx, Kings, New York, Queens, Richmond, Nassau, Suffolk
Dutchess, Orange, Putnam, Rockland, Sullivan, Ulster, and Westchester counties
Syracuse Cooperative Federal Credit Union: $500,000
Service Area: Cayuga, Cortland, Madison, Onondaga and Oswego counties
TruFund Financial Services: $3,000,000
Service Area: Queens, Kings, Richmond, New York, Bronx, Westchester, Suffolk, Nassau counties
Washington Heights and Inwood Development Corporation: $100,000
Service Area: Northern Manhattan which includes Washington Heights, Inwood, and Western Bronx in New York and Bronx counties. ■