New York City Mayor Eric Adams and New York City Department of Small Business Services (SBS) Commissioner Kevin Kim announced the creation of the $75 million Small Business Opportunity Fund. This will be the most significant public-private loan fund specifically meant for small businesses in NYC’s history and will fulfill a significant commitment in Mayor Adams’ “Rebuild, Renew, Reinvent: A Blueprint for New York City’s Economic Recovery.”
“Small businesses kept us going through the pandemic, and they are leading the way during our economic recovery. Now, we are giving back with the NYC Small Business Opportunity Fund,” said Mayor Adams. “Our efforts to cut red tape and jumpstart our recovery are already delivering results: We saw 13,600 new businesses open in the first half of 2022, including 1,800 new storefronts. This new loan fund will help us build on that progress and represents the next great step forward in our city’s partnership with our entrepreneurs and small business owners.”
The Small Business Opportunity Fund
The Small Business Opportunity Fund will serve up to 1,500 local businesses, offering loans up to $250,000 at a lower than the market interest rate of 4%. Small businesses typically do not receive widespread financial support, more so with the outbreak of COVID-19, and this fund will look to break the various barriers against them.
The Small Business Opportunity Fund will promote a more diverse and inclusive economy as it will allow funding to reach more BIPOC and immigrant communities. Loans will be available in the range of $2,000 to $250,000. The fixed interest rate will sit at 4%, regardless of loan size. Start-up businesses will only pay interest for the first six months, regardless of loan size.
The loans are meant to grow the business, hire new employees, and finance existing debt. Business owners will have access to free long-term support through SBS. Small businesses eligible for a loan must have an annual revenue of less than $5 million and be located in the city. Applications opened online on January 23.
“To reach a full and equitable recovery, New York City’s small businesses need a boost — and with the launch of the historic NYC Small Business Opportunity Fund, SBS is delivering,” said SBS Commissioner Kim. “This loan fund will unlock opportunities for businesses hit hardest by the pandemic by offering flexible and affordable financing to help businesses recover and grow. Our team and dedicated partners are committed to ensuring local small businesses, particularly those too often excluded from pandemic-era relief, use this fund to propel themselves forward.”
Strength in Numbers
The Small Business Opportunity Fund will be implemented by the partnership between the City of New York, Goldman Sachs, Mastercard Center for Inclusive Growth, Community Reinvestment Fund (CRF), and local community development financial institutions (CDFI).
“We’re grateful to work with dedicated CDFI partners to help small business owners in New York City,” said Sherry Wang, co-head of Urban Investment Group, Goldman Sachs Asset Management. “We believe that the NYC Small Business Opportunity Fund will be critical to increasing access to capital for businesses disproportionately impacted by the pandemic and will contribute to an equitable recovery across our city.”
CDFI partners such as Accompany Capital, Harlem Entrepreneurial Fund, and others will offer free advice and assistance in the application process for the Small Business Opportunity Fund. They will engage with local businesses to reach those in urgent need. CDFIs that wish to partner on the fund may apply to do so. In order to spread knowledge of the Small Business Opportunity Fund and its possible impact, SBS will carry out a door-to-door campaign in hard-hit communities.
Small businesses are an essential part of New York City. “Small businesses are the engines of our economy, and the NYC Small Business Opportunity Fund will give business owners across the five boroughs the fuel they need to thrive,” said Deputy Mayor for Economic and Workforce Development Maria Torres-Springer.
