New York City launched a revamped loan program this week aimed at helping small businesses access more affordable capital, with special attention to entrepreneurs who have historically struggled to secure financing.
Mayor Zohran Kwame Mamdani, Deputy Mayor for Economic Justice Julie Su, and Department of Small Business Services Commissioner Kenny Minaya on Tuesday announced the citywide expansion of the NYC Future Fund, which offers loans with lower costs and easier eligibility requirements than the pilot version.
The program prioritizes immigrant-, minority-, and women-owned businesses.
“Many entrepreneurs – especially immigrant and working-class New Yorkers – have been locked out of the affordable capital they need to grow,” Mamdani said. “By lowering costs and expanding access, we are making sure small business owners across the five boroughs have the tools they need to grow and strengthen the communities they serve.”
The city reduced the minimum loan amount from $100,500 to $25,000 and cut interest rates from 9% to 7.5%. Monthly repayment rates now range from 2% to 9.5% of revenue, down from a flat 9.5% rate, depending on loan size and business needs. The program also lowered the minimum annual revenue requirement for eligible businesses from $300,000 to $50,000.
“These city-backed loans are designed to meet the real needs of businesses and expand fair access to the capital they need to grow,” Su said.
The changes came after feedback from a pilot program that distributed $1.2 million to four small businesses. JPMorgan Chase and TD Bank provided funding for the pilot.
The NYC Future Fund operates as a partnership between the city and local Community Development Financial Institutions, including Community Reinvestment Fund, USA, Accompany Capital, Grow America, and Pursuit. The launch includes outreach efforts targeting communities that have faced the greatest barriers to affordable financing.
Applications are available at nyc.gov/futurefund.
NYC just made it easier for small businesses to get affordable loans
