NYC Gazette

June 8, 2023

Watch the video here at https://www.youtube.com/watch?v=sw6291TbJuM

Opportunity Fund Has Provided $50 Million in Capital to Small Businesses, 75 Percent to Minority-and-Women-Owned Businesses

Largest Public-Private Loan Fund for Small Business in New York City History Breaks Down Historic Barriers to Financing

Partnership with Goldman Sachs, Mastercard, CDFIs Delivers on Key Pillar of Mayor Adams’ “Blueprint for Economic Recovery”

NEW YORK – New York City Mayor Eric Adams and New York City Department of Small Business Services (SBS) Commissioner Kevin D. Kim today announced that more than 600 small businesses have been served by the landmark NYC Small Business Opportunity Fund —the largest public-private loan fund directed at small businesses in the city’s history — so far this year. Since its launch in January, the Opportunity Fund has awarded 601 businesses a total of $50.5 million in capital, 75 percent of which went to minority or women-owned business enterprises. Additionally, more than half of the funds awarded went to businesses in low-to-moderate income (LMI) communities. The fund — made possible by a public-private partnership between the city, Goldman Sachs, Mastercard Center for Inclusive Growth, and local community development financial institutions (CDFIs) — fulfills a goal set forth in Mayor Adams’ “Renew, Rebuild, Reinvent: A Blueprint for New York City’s Economic Recovery” plan.

“New York City is where dreams are made and nothing personifies that dream more than being able to open a small business, and watch it grow and expand,” said Mayor Adams. “Our small businesses are driving our economic comeback; they are the backbone of our city, and we must stop breaking their backs so they can flourish and grow in our city. That is exactly what this administration is doing through the Small Business Opportunity Fund, and I am incredibly proud to share that we have helped more than 600 small businesses through the largest public-private loan fund directed to small business in our city’s history. This is what public-private partnership looks like, coming together to invest in our people, especially minority-and-women-owned businesses ­— many of whom did not close during the pandemic’s peak. We are removing red tape and barriers so our small business owners can pursue the American dream, get their businesses up and running, and keep their doors open.”

“The effect that the Small Business Opportunity fund will have on the lives of workers and the vitality of our neighborhoods cannot be overstated,” said Deputy Mayor for Economic and Workforce Development Maria Torres-Springer. “When we provide our local businesses with access to capital, we provide our communities with the resources they need to thrive. These loans will go a long way towards revitalizing the neighborhoods that were most devastated by the pandemic and ensuring that all New Yorkers benefit from our recovery.”

“The Small Business Opportunity Fund is making a real, positive impact on New York's small business owners with the capital they need to grow and thrive,” said SBS Commissioner Kevin D. Kim. “Today, we celebrate the strength and resiliency of our city's small businesses and recognize the impact of our public-private partnerships. This milestone demonstrates our commitment to making New York into the ‘City of Yes’ for small businesses.”

“The Opportunity Fund is standing proof that when government works with our city’s rich network of private sector partners and community development financial institutions, great things are achievable,” said New York City Chief Business Diversity Officer Michael J. Garner.  “The $50 million in capital that have gone to our small businesses via this fund, 75 percent of which are Minority & Women-Owned firms, is a meaningful investment in what makes our great city unique — the tens of thousands of diverse small businesses that allow us to function as the most dynamic city in the world. This is also an investment in the local communities of color who stood resilient during COVID-19, and that have strongly contributed to New York City’s post pandemic economic recovery. I salute the effective leadership of Mayor Adams and SBS Commissioner Kevin Kim in eliminating this historical barrier to entry that most New York City certified M/WBEs encounter when entering the industry.” 

The NYC Small Business Opportunity Fund launched on January 23, 2023. The fund offers loans of up to $250,000 to eligible small businesses with a market-leading interest rate of four percent. Applications for the Opportunity Fund closed on February 13, 2023.

The Opportunity Fund is designed with flexible terms, including low barriers to application, such as no credit score requirement or application fee, provisions to enable businesses to use loans to pay off high-interest debt accumulated during the pandemic, and no required years-in-business — enabling the fund to serve start-up and growth-stage businesses that otherwise face high obstacles to financing. Moreover, the fund is powered by an innovative partnership with eight CDFIs, leveraging the deep roots of local organizations to reach businesses in Black, Indigenous, People of Color (BIPOC) and immigrant communities.

New York City continues to experience a massive economic boomerang, with the city having recovered 99 percent of pre-pandemic private sector jobs — a comeback once predicted to take until 2025 or later — according to the New York State Department of Labor. A 100 percent recovery will mark a record for the highest number of private sector jobs across the five boroughs in New York City’s history.

From corner retail stores to professional consulting firms, small businesses help power New York City’s economy and have been a major driver of the city’s recent recovery. They contribute to the city’s dynamism — making neighborhoods unique and providing income to New Yorkers across the five boroughs. According to a recent report from the New York City Economic Development Corporation, small businesses with fewer than 50 employees accounted for 45 percent of New York City’s overall employment growth from the first quarter of 2021 to the second quarter of 2022, contributing $3.2 billion in direct economic output to the city.

“We are excited to see that the Opportunity Fund has made such a strong impact in such a short period of time within the community,” said Asahi Pompey, global head of corporate engagement, Goldman Sachs. “This milestone would not have been possible without the partnership with the City of New York, and we look forward to continuing to aide in the economic empowerment of small business owners and the overall growth of the city.”

“This milestone is both an affirmation of an approach and a learning opportunity for the future,” said Shamina Singh, founder and president, Mastercard Center for Inclusive Growth. “Through this public-private collaboration, we’ve been able to identify a need within the small business community in New York City, and then quickly meet that need in a targeted and impactful way. We’re proud to support the Opportunity Fund, and we look forward to building on this early success to help New York City small businesses continue to flourish.”

“Providing small businesses with the resources they need is vital to growing economic opportunities in New York City neighborhoods,” said U.S. Senator Kirsten Gillibrand. “I am proud to support efforts by Mayor Adams to provide New York City’s small businesses with the capital they need to succeed and will continue to work with him to expand opportunities for all business owners.”

“Small businesses are the beating heart of New York—and I’m pleased to see the NYC Small Business Opportunity Fund’s success in serving over 600 small businesses, a majority of which are Minority-and-Women-Owned Businesses. I look forward to the Fund’s continued success as the City invests in these economic engines that power our neighborhoods,” said Congressman Jerrold Nadler.

“I commend New York Mayor Adams and SBS Commissioner Kim on today’s announcement to deliver this historic level of funding to support small businesses in New York City, including in my district,” said Congressman Adriano Espaillat (NY-13). “Small businesses are the lifeblood of our communities and drive our economy while helping our neighborhoods thrive. This public-private collaboration serves as a model for future growth, especially within historically underserved communities, and will be instrumental towards New York City's continued growth, prosperity, and equity for all.”

"New York's small businesses are the backbone of our economy and helping them bounce back from the effects of the COVID-19 pandemic is critical," Congressman Dan Goldman said. "I applaud Mayor Adams and his administration for prioritizing small business recovery through the opportunity fund. These investments in small businesses, especially those that are women or minority-owned, will ensure that New York grows stronger together."

“I commend Mayor Adams and Commissioner Kim for launching the largest public-private loan fund in our city’s history,” said New York State Assemblymember Jenifer Rajkumar. “Small businesses give our neighborhoods their character and employ half the city’s workforce. In under six months, the Small Business Opportunity Fund has invested $50 million in 601 of our small businesses. The user-friendly application allowed the fund to uplift many M/WBEs, immigrant-owned businesses, and businesses in low-to-moderate income communities. These businesses can be a path to the American dream, and the Small Business Opportunity Fund may have been their only way to access capital. It has bolstered economic health, vibrancy, and equality in our city.”

“Small business is the beating heart of New York City's economy,” said New York City Council Majority Whip Selvena N. Brooks-Powers. “Ensuring access to capital for small businesses – especially minority and women-owned businesses – is crucial for sustainable and equitable economic growth. I look forward to working with the administration to bolster initiatives that strengthen small businesses citywide.”

“Small businesses are the lifeblood of New York City, and I am glad to see so much work being done to help these merchants survive – especially during these difficult economic times,” said New York City Councilmember Joann Ariola. “I hope that more businesses will take advantage of this program, so that we can continue to fast-track New York City’s economic recovery and pave the way to a brighter future for all New Yorkers.”

“Through the NYC Small Business Opportunity Fund, we are breaking down historic barriers to financing and empowering over 600 small businesses to thrive,” said New York City Councilmember Julie Menin. “This landmark initiative, fueled by a public-private partnership, has provided over $50 million in capital, with 75 percent going to minority-and-women-owned business enterprises. By serving the diverse needs of our communities, we are building a stronger, more inclusive New York City economy. Thank you to Mayor Adams and New York City Department of Small Business Services Commissioner Kim for empowering New Yorkers and lending a helping hand to our vital small businesses.”

Original source can be found here.