New York City Mayor, Eric Adams, recently announced a new partnership with Goldman Sachs Group Inc. and Mastercard Inc. to create the biggest public-private loan fund for small enterprises in the city’s history. – This is a first-of-its-kind $75 million NYC Small Business Opportunity Fund, and the city is hoping to help with it by offering businesses loans to develop.
The loans will range from $2,000 to $250,000 at a fixed below-market interest rate of 4%, irrespective of the loan size.
The main purpose of the loan
The mayor said the program, which will serve roughly 1,500 participants, will offer remarkable resources at a critical time in the city’s economic recovery.
According to SBS (Small Business Services) Commissioner Kevin D. Kim, this loan aims to unlock chances for businesses hit hardest by the pandemic by offering adaptable and affordable financing to help them recover and develop.
Adams also noted that their efforts to cut red tape and jumpstart recovery in this city are already providing results, and this new loan fund will help build on that growth and represents the next great step forward in the city’s partnership with its entrepreneurs and small business owners.
Eligibility for the loan
This loan is available to New York City businesses with less than $5 million in annual revenues. Applications for it are open now. To learn more about the program, you can call the hotline at “(888) SBS-4NYC”. New York City will also offer webinars to explain the application process. The webinars will be offered weekly, starting on, Jan. 24.
There are also flexible terms in place to address historic barriers to ensure vast access to the fund by eliminating credit score minimums, not imposing application fees, serving start-up and growth-stage businesses, and leveraging the deep roots of provincial organizations to reach businesses in BIPOC (Black, Indigenous, and People of Color) and immigrant communities.
New New York businesses that receive assistance from the Opportunity Fund will pay interest only for the first six months, irrespective of loan size, and longer-term businesses can use the loan to refinance standing high-interest debt, broaden their customer base, hire new employees, and more.
North Shore Councilwoman Kamillah Hanks said this NYC Small Business Opportunity Fund is an important step in the right direction for small businesses in the city. And it will provide essential financial support and access to resources to help small businesses recover and grow.
This Opportunity Fund is part of the mayor’s “Blueprint for Economic Recovery” and “Small Business Forward” endeavors, which identified over 100 reforms to reduce pandemic-related fines, expand cure periods, and eradicate violations for small business owners. So it’s safe to assume this is just the beginning.
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