2023-08-09 23:18:46
What you should know
Governor Kathy Hochul announced Monday that the Small Business Revolving Loan Fund 2 of $55.5 million is now available to provide short-term microloans and regular loans to address unequal access to capital.Microloans (loans between $500 and $25,000); and regular loans (typically as large as $250,000 or more depending on the lender) are available with terms based on individual lender offers. This builds on the success of the first round of the Small Business Revolving Loan Fund that launched in 2010 with $25 million in financing that resulted in nearly $280 million in loans to small businesses.
NEW YORK — This is good news for small businesses in New York.
Governor Kathy Hochul announced Monday that the Small Business Revolving Loan Fund 2 of $55.5 million is now available to provide short-term microloans and regular loans to address unequal access to capital. This is because the loans help close the financing gaps faced by startups, underbanked communities, and small businesses.
This program, which is part of the efforts of the New York State Small Business Credit Initiative directed by Empire State Developmentwill leverage financial loan capital to boost economic activity by expanding access to short-term loan capital for socially and economically disadvantaged small, micro, and sole proprietorships that have faced historical barriers to obtaining credit or loan terms suitable.
“Ninety-eight percent of New York businesses have fewer than 100 employees and they are a key driver of our economic growth,” Governor Hochul said. “The Small Business Revolving Loan Fund 2 will boost these small businesses, especially our minority and women entrepreneurs, and help build the economy of the future.”
Small businesses can apply for loans through a participating Community Development Financial Institution (CDFI). Program lenders use program capital along with matching capital from other resources to further enhance the funds available to small businesses. Typical uses of the funds are working capital, acquisition and/or improvement of real estate, acquisition of machinery and equipment and, in some cases, refinancing of debt obligations.
Microcredits (loans between $500 and $25,000); and regular loans (typically as large as $250,000 or more depending on the lender) are available with terms based on individual lender offers.
Program lenders are the primary point of contact for borrowers, and each has its own loan application process and loan products. Interest rates, terms and competitive fees are determined by individual program lenders. Lenders are responsible for credit applications and decisions.
This builds on the success of the first round of the Small Business Revolving Loan Fund that launched in 2010 with $25 million in financing that resulted in nearly $280 million in loans to small businesses.
What is the Small Business Loan Revolving Fund 2
The New York State Small Business Revolving Loan Fund Round 2 (“SBRLF2” or the “Program”) will utilize $55,583,258 in State Small Business Credit Initiative (SSBCI) funds allocated by the federal government for short-term financing needs and will address unequal access to capital with loans that address the financing gaps faced by startups, unbanked communities, and small businesses that are more likely to be owned by minorities. Alternative financial loan capital will be used to create economic activity by providing increased access to short-term loan capital to small, micro, and socially and economically disadvantaged (“SEDI”) businesses that historically cannot obtain adequate credit or adequate terms for such credit. A SEDI business owner includes, but is not limited to, minority- and women-owned business businesses, disabled veteran-owned service businesses, and veteran-owned businesses located in economically distressed communities.
Who qualifies
A “Qualifying Business” is: a business enterprise that resides and is authorized to do business in the State of New York; independently owned and operated; not dominant in its field; and employs 100 or fewer people full-time.
how much are the loans
CBLO loans to Qualified Businesses will be microloans (loans between $500 and $25,000); and regular loans (with a principal amount greater than $25,000 but not more than $20,000,000). Program funds used by the CBLO to finance a qualifying business loan will not exceed fifty percent of the principal amount of such loan and will not exceed $125,000.
Loan terms to qualifying businesses will be based on individual CBLO offers but will generally not exceed 10 years.
Interest rates and approval terms set by individual lenders.
Where can I find more information about the program?
For more information go here.
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