New York City Economic Development Corporation Hosts 2nd Annual Food Manufacturers Business Expo and Announces Funds Available for Food Manufacturers
Over 200 Businesses Attend Expo This Year, Learning from Industry Experts How to Grow Their Businesses, and Networking With Brokers, Buyers, and Distributors
Goldman Sachs 10,000 Small Businesses NYCEDC Food Manufacturers Fund To Support Financing for Jobs and Growth in Food Manufacturing Industry
NYCEDC Announces Summer Fancy Food Contest – Four Winning Companies Will Receive All Expenses Paid Booth at 2013 Summer Fancy Food Show
The New York City Economic Development Corporation today hosted the second annual New York City Food Manufacturers Business Expo. Featuring an estimated 200 businesses from around New York City, the Expo provided local food manufacturers the opportunity to meet brokers, buyers, distributors, suppliers and industry experts and aims to help food manufacturers gain a competitive advantage and grow their businesses. NYCEDC and Goldman Sachs today announced that the 10,000 Small Businesses NYCEDC Food Manufacturers Fund, a $10 million fund, is now available to the City’s small food manufacturers to expand their businesses and create jobs. The loans, which can be applied for immediately, will range from $50,000 to $750,000. This fund, which will lend to New York City-based food manufacturers unable to obtain traditional financing, represents a significant public-private partnership and a unique opportunity to expand the City’s economy. NYCEDC is also announcing the launch of the 2013 Summer Fancy Food Show Contest, designed to help address challenges faced by local food manufacturers, including limited resources to plan for growth; difficulty in fully accessing local, regional, and national markets; and access to technical assistance services.
“It’s inspiring to see all the different kinds of creative—and delicious—products being created here,” said NYCEDC Executive Director Kyle Kimball. “The industrial sector remains a key source of economic activity in New York City, accounting for over 15% of private sector employment. That’s why helping manufacturing companies modernize their business models has been a central tenet of our strategy to grow NYC’s economy. It is also why at today’s second annual New York City Food Manufacturers Business Expo we have a wide range of resources available to support the growing food manufacturing industry.”
“Through our 10,000 Small Businesses program we have seen that access to capital is a big factor in helping small businesses grow their revenues and create jobs,” said Alicia Glen, head of the Urban Investment Group at Goldman Sachs. “We are pleased to partner with NYCEDC to help small businesses in the food manufacturing sector expand and ultimately benefit the broader New York City economy.”
“Interest in locally produced products made by passionate food entrepreneurs is driving the specialty food industry today. Through our Summer Fancy Food Show and year-round education programs, we aim to help companies advance in the marketplace,” said Ron Tanner, Vice President of Communications and Education for the National Association for the Specialty Food Trade.
Food manufacturers are a key component of the City’s economy and one of the City’s industrial success stories. The sector has been a source of steady growth in the local economy since the recession; in 2011, the sector generated an estimated $2.9 billion in sales. New York City’s approximately 1,000 food manufacturing businesses employ over 14,000 individuals, often in jobs that offer well-paying opportunities to low-skilled workers.
The Second Annual Food Manufacturers Expo aims to help food manufacturers gain a competitive advantage and grow their businesses. The event featured NYCEDC Executive Director Kyle Kimball, the National Association for the Specialty Food Trade (NASFT), NYC-based food manufacturers, and food brokers, buyers and distributors. Last year over 100 businesses participated in the event, and over 200 attended this year.
Through competitive public procurement, NYCEDC and Goldman Sachs selected the New York Business Development Corporation to administer the 10,000 Small Businesses NYCEDC Food Manufacturers Fund, making and servicing loans to qualifying food manufacturers in the City. New York Business Development Corporation (NYBDC) is a private corporation created by an act of the New York State Legislature in 1955. Its mandate includes promoting employment and economic development throughout New York State through long-term loans to creditworthy small businesses. NYBDC complements conventional banking with the use of SBA guarantees, flexible amortization and long-term payouts. Through NYBDC, businesses in New York City have the opportunity to obtain financing that may not be available through conventional means.
Up to $10 million in loans will be made during a two year period, with loans ranging from $50,000 to $750,000. To be eligible, a business must meet the following qualifications:
- Engage in the business of Food Manufacturing as defined by North American Industry Classification System code 311, transforming livestock and agricultural products into products for consumption, which are then sold to wholesalers, retailers or sold by the business itself, but not for immediate consumption.
- Demonstrate difficulty obtaining credit from traditional sources.
- Be located in the City as its main place of business and business operations, and also have been formed under the laws of New York State or have qualification to do business in New York State.
- Employ 4 to 100 persons, have annual revenues of $150,000 to $7,000,000 in the most recent financial year, and have been in operation for at least two years.
Goldman Sachs 10,000 Small Businesses is a $500 million program that will unlock the growth and job-creation potential of 10,000 small businesses across the United States through greater access to business education, financial capital and business support services. The program is based on the broadly held view of leading experts that greater access to this combination of education, capital and support services best addresses barriers to growth for small businesses. The program is currently operating in Chicago, Cleveland, Houston, Long Beach, Los Angeles, New Orleans, New York, Philadelphia and Salt Lake City and will continue to expand to communities across the country.
At the expo, NYCEDC is announcing the 2013 Summer Fancy Food Show Contest, designed to help address challenges faced by local food manufacturers, including limited resources to plan for growth; difficulty in fully accessing local, regional, and national markets; and access to technical assistance services. In preparation for the international trade event at the Jacob K. Javits Convention Center, the four winning companies will receive promotional services as well as expert marketing and technical assistance to help them refine their pitch, display, and business plan to successfully obtain and fulfill larger contracts. Last year, twenty seven companies participated in the competition. Four winners were selected to exhibit at the 2012 Summer Fancy Food Show where they made connections that have increased new accounts and access to new national markets. The 2nd annual contest aims to build upon the success of the first year’s competition by expanding this opportunity for an additional four NYC companies.
The 10,000 Small Businesses NYCEDC Food Manufacturers Fund and the 2013 Summer Fancy Food Show Contest will help small companies overcome growth barriers and serve to support the City’s burgeoning food manufacturing industry. The small businesses aided in these programs provide the momentum New York City needs to maintain its role as a global economic leader and sustain a healthy, diverse economy.
New York City Economic Development Corporation is the City's primary vehicle for promoting economic growth in each of the five boroughs. NYCEDC's mission is to stimulate growth through expansion and redevelopment programs that encourage investment, generate prosperity and strengthen the City's competitive position. NYCEDC serves as an advocate to the business community by building relationships with companies that allow them to take advantage of New York City's many opportunities. Find us on Facebook or follow us on Twitter, or visit our blog to learn more about NYCEDC projects and initiatives.
The NASFT celebrated its 60th anniversary in 2012. It is a not-for-profit trade association established in 1952 in New York City to foster commerce and interest in the specialty food industry. Today there are more than 3,075 members in the U.S. and abroad. The NASFT's website for consumers, foodspring.com, provides an insider's look at specialty foods and the companies, food entrepreneurs and artisans behind them. The NASFT operates the Summer and Winter Fancy Food Shows. For more information on the NASFT, go to specialtyfood.com.