The programs – the NYC LMI Storefront Loan, the Interest Rate Reduction Grant, and the Strategic Impact COVID-19 Commercial District Support Grant – will provide critical resources for small businesses to help them rebuild and grow beyond the pandemic of coronavirus.
“Our fight against COVID-19 has been costly for the small businesses that anchor New York City neighborhoods,” de Blasio said. “We are proud to offer real relief to help these business owners keep their teams together and continue to serve their communities for years to come. “
COVID-19 has had a disproportionate impact on minority communities, and more than 60,000 businesses in these communities – restaurants, retail stores, salons, daycares, etc. – have historically been prevented from accessing capital and face a higher risk of closure.
The Racial Inclusion and Equity Task Force worked with small business services to address these issues in neighborhoods with a high percentage of other socio-economic and health disparities.
“Now more than ever, black, Latin and Asian companies are struggling to access capital,” Doris said. “Launching these programs is a targeted approach to delivering relief to communities that need it most. The city is committed to ensuring that all small businesses have the resources they need to get back on their feet in these extraordinary times.
The programs work as follows:
NYC LMI storefront loan
The Department of Small Business Services has partnered with the New York City Economic Development Corporation and Pursuit BDC for this $ 35 million loan vehicle. Storefront businesses with two or more but fewer than 100 employees and located in low-income neighborhoods will be able to apply for a zero-interest loan up to $ 100,000. The loan can be used to help businesses restart or continue operations after encountering difficulties related to COVID-19.
Companies wishing to apply for the loan must:
–Be a showcase company located in an LMI postal code
–Have commercial activities since or before January 1, 2018
– Employ between two and 99 employees
Businesses can learn more about the NYC LMI Storefront Loan and eligibility criteria at NYC.gov/storefrontloan. Applications for this loan open on November 30.
Reduce corporate debt
The Interest Rate Reduction Grant will help reduce interest expense owed on an existing loan from some community development finance institutions, which focus on serving businesses that cannot easily access capital and creating opportunities. that have a positive impact on the communities they serve. SBS has partnered with 11 CDFIs who work primarily with Asian, Black, Latin American and immigrant business owners. The grant will free up cash flow for businesses that can be reallocated to help restart or maintain operations. Businesses must have an existing loan from the CDFIs listed below and should contact their CDFI to confirm if they are eligible.
–Accompany Capital (formerly Business Center for New Americans)
–Ascendus (formerly Accion Est)
–Great Jamaica Development Corporation (GJDC)
–Harlem Entrepreneurial Fund
–Renaissance Economic Development Corporation
–The Bronx Comprehensive Economic Development Corporation (BOEDC)
–TruFund Financial Services
– Upper Manhattan Empowerment Zone Development Corporation (UMEZ)
–Washington Heights and Inwood Development Corporation (WHIDC)
–The World of Work DBA Seed Commons
The above list of CDFIs is also available on NYC.gov/cdfigrant.
COVID-19 Strategic Impact Business District Support Grant
The Strategic Impact COVID-19 Commercial District Support grant will provide funding to community development organizations to implement local COVID-19 recovery support for small businesses. The funds will be used to conduct outreach activities, provide technical assistance to connect small businesses, increase awareness and understanding of new city and state rules and regulations, and strengthen relationships with traders to foster collaboration and increased local organization. Officials say $ 700,000 will be available over the next six months for local communities.
Eligible applicants must serve one or more of the following 39 LMI neighborhoods and communities of color:
–Bronx: Crotona, East Tremont, Highbridge, Hunts Point, Jerome Park, Longwood, Melrose, Morris Heights, Morrisania, Mott Haven, Soundview, Soundview Bruckner, Van Cortlandt Park
–Brooklyn: Bedford-Stuyvesant, Brighton Beach, Brownsville, Bushwick, Canarsie, East Flatbush, East New York, Starrett City, Sunset Park and Coney Island
–Manhattan: Central Harlem, Chinatown, East Harlem, Hamilton Heights, Inwood, Lower East Side, Morningside Heights, Washington Heights
–Queens: Briarwood, Corona, Jamaica, Queensbridge, Rockaways
–Staten Island: St. George, Stapleton
Eligible applicants include nonprofit community development organizations that serve a single neighborhood, CBDOs that serve multiple neighborhoods or a borough, and organizations that can provide technical and organizational assistance to neighborhood organizations across the city. Organizations interested in applying should visit NYC.gov/strategicimpactgrant.
MORE CORONAVIRUS COVID-19 COVERAGE
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