New York offers financial aid to small businesses to survive

$ 37 million will be available to businesses in the hardest hit communities.

Bill De Blasio, Mayor of New York City, and Jonnel Doris, Commissioner of the New York City Department of Small Business Services (SBS), announced the implementation of three financial assistance programs for businesses in low to moderate income communities (LMI).

The NYC LMI Business Loan, (NYC LMI Storefront Loan), the Interest Rate Reduction Subsidy, (Rate Reduction Grant) and the COVID-19 Strategic Impact Business District Support Grant, (Strategic Impact COVID-19 Commercial District Support Grant), are the programs created to provide resources to small girls during the pandemic.

For this, the city will allocate a budget of 37 million dollars, and small businesses in vulnerable communities will be able to apply as of November 30.

The mayor assured that he is proud of the future implementation of the programs, “Our fight against COVID-19 has been costly for small businesses. 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. “

James Patchett, president and CEO of the New York City Economic Development Corporation, said these programs can make a difference.

“Moving toward a strong recovery means providing communities hardest hit by COVID-19 with the resources they need to rebuild. Our minority businesses were disproportionately affected by the pandemic and its resurgence is key to the city’s long-term success. These funds will provide a critical lifeline that will help these businesses recover and continue to enrich and strengthen their communities for years to come. “.

It may interest you: New York small businesses facing “uncertain future” due to new closure

The NYC Business Loan will help businesses continue or restart activities during the pandemic.

For this program the Department of Small Business Services partnered with the New York City Economic Development Corporation and Pursuit BDC and make $ 35 million available to businesses with fewer than 100 employees who need to request a loan of up to 100,000 dollars without interest.

However, it is important that in order to apply, small businesses in addition to being located in areas with LMI neighborhood zip codes and have between 2 and 99 employees, have started their operations on or before January 1, 2018.

The Interest Rate Reduction Grant will primarily help Asian, Black, Latino, and immigrant business owners.

It is intended to support businesses that cannot easily access capital to grow and expand, for this the SBS partnered with 11 Community Development Financial Institutions (CDFI) that work mainly with Asian, black, Latino and immigrant entrepreneurs.

The grant will free up cash flow for companies, they must have an existing loan with a CDFI, therefore they must contact yours to confirm if they are eligible to apply.

“Now more than ever, African-American, Hispanic, and Asian-owned businesses are struggling for capital. The launch of these programs is a specific approach to providing help in the communities that need it most. The city is committed to ensuring that all small businesses have the resources they need to recover during these extraordinary times. ” Jonnel Doris said.

The COVID-19 Strategic Impact Business District Support Grant will call for strengthening business relationships.

This program will provide funds to Community Development Organizations (CBO) to implement the local COVID-19 recovery support through outreach activities, technical assistance to connect small businesses, increase awareness and understanding of new City and State rules and regulations, and strengthen business relationships to foster collaboration and greater local organization.

Applicants must serve one or more of the following 39 LMI neighborhoods and communities of color to apply, with at least $ 700,000 available for the next 6 months.

You can also read: 90% of Americans don’t believe in economic recovery

–