February 2, 2023
Small business companies seeking affordable capital to grow their business should consider the NYC Small Business Opportunity Fund.
The NYC Small Business Opportunity Fund is designed specifically for small businesses and startups that need a quick cash infusion to fuel their growth. The fund, which is backed by the New York City Small Business Services organization, is designed solely for companies that are headquartered in New York City. Since the fund is for small businesses, only companies with fewer than $5 million in annual revenue can apply.
To its credit, New York City Small Business Services is trying to cast as wide a net as possible to attract companies. In an FAQ section on its website, the organization said the fund is available to any company, including startups, recovering businesses, and those owned by BIPOC individuals, women, and immigrants, among others. The fund doesn’t rely solely on credit scores, therefore business owners with poor credit can qualify for a loan.
Following are relevant facts with regard to the Fund.
• Despite its flexibility, those seeking a major capital infusion may not want to consider the NYC Small Business Opportunity Fund. According to the organization, the fund’s loan amounts are limited between $5,000 and $250,000, based on applicant need and their ability to repay the loan.
• Loans provided by the program will carry a 4% interest rate, and borrowers will need to pay back over 60 or 72 months. The shorter term is for loans of $100,000 or less, while the 72-month amortization will accompany loans greater than $100,000. That said, borrowers can repay the loan at any time without risk of a prepayment penalty.
• The proceeds from the NYC Small Business Opportunity Fund can only be used for the following purposes: “Startup, Business Acquisition, Transition Businesses, Refinancing, Equipment, Leasehold Improvements, Working Capital. No real estate (unless part of a business acquisition.)”
• Any business that engages in an activity banned by federal law, and those that cannot provide tax returns, financial data, and bank statements, cannot apply. Not-for-profit organizations are not eligible for these loans.
• Those interested in applying for the fund can start the process online at the NYC Small Business Opportunity Fund site. Once their information is verified and documents are submitted, the funds will be quickly made available, the organization said.
• All loans will be serviced by a network of local lenders, including AscendUs, Pursuit, and others. The New York City Small Business Services was also quick to note that the fund is backed by a variety of other organizations, including MasterCard and the Goldman Sachs One Million Black Women organization.
The NYC Small Business Opportunity Fund is available now to interested companies. And as always, if you’re interested in learning more or getting some advice before you apply, please contact your Perlson professional.
New York State has launched a program that aims at helping you secure the funding you need.