More than $11 Million Approved for Small Businesses Through City's Emergency Loan Fund
NYC Department of Small Business Services and NYCEDC recently announced more than $11 million in loans approved for small businesses through the City’s Emergency Loan Fund, which was made available just days after Hurricane Sandy. Did you know:
- More than $1.5 million in matching grants have also been distributed to businesses approved for the City’s Emergency Loan.
- A total of $15 million was made available in the fall through the Emergency Loan Fund by the New York City Economic Development Corporation, Goldman Sachs, and the New York Bankers Association.
- Additionally, $5.5 million was immediately made available in matching grants, through a $5 million contribution from the Mayor’s Fund to Advance New York City, and $500,000 from the Partnership Fund for New York City.
- The City and the New York Bankers Association yesterday also announced an additional $5 million, raising the total amount available in the City’s Emergency Loan Fund to $20 million.
“Providing New York City businesses with these additional tools is an essential part of our ongoing recovery efforts in the wake of Hurricane Sandy," said NYC Deputy Mayor Robert K. Steel. "Since the days immediately following the storm, the Bloomberg Administration has been committed to helping impacted small businesses with loans, grants, and other forms of assistance, ensuring that they are able to reopen and New Yorkers are able to get back to work as soon as possible.”
The original contribution of $10 million to the Emergency Loan Fund was made by the New York City Economic Development Corporation and Goldman Sachs in the days immediately following the storm. Goldman Sachs, through its Urban Investment Group, matched the City’s $5 million contribution, doubling the amount that had previously been available.
How It Works
The City’s Emergency Loan Fund provides up to $25,000 to small businesses that experienced direct damage through flooding or power outages with capital to cover working capital, repairs and equipment replacement, among other things. Loans are interest free for the first six months and 1% interest for up to 24 months. Businesses that are approved for the City’s Emergency Loan Fund can also receive a matching grant of up to $10,000. The New York Business Development Corporation (NYBDC) is administering both the loan and matching grant for the City.
Small businesses who do not qualify for the City’s Emergency Loan Fund can also apply for alternative financing options. NYC Business Solutions has relationships with more than 40 alternative lenders who may be able to help. For more information, or to apply for the City’s Emergency Loan Fund, call 311 or visit www.nyc.gov/nycbusiness. NYC Business Solutions Centers are also located in all five boroughs and can help with the loan application and other needs.
To hear from small businesses rebuilding after Sandy, go to nycedc.com/gettingbacktobusiness.