Mayor Bill de Blasio and the City’s Small Business Services (SBS) commissioner, Jonnel Doris, announced on Nov. 25 three financial assistance programs available to small businesses in low-to-moderate income (LMI) neighborhoods. The NYC LMI storefront loan, interest rate reduction grant, and strategic impact COVID-19 commercial district support grant will provide critical resources to small businesses to help them build back and grow beyond the pandemic.

 

“Our fight against COVID-19 has been costly for the small businesses that anchor New York City’s neighborhoods. We’re proud to offer real relief to help these business owners keep their teams together and continue serving their communities for years to come,” said de Blasio.

 

The move was welcomed by J. Phillip Thompson, deputy mayor for strategic policy initiatives and co-chair of the City’s racial inclusion and equity task force. “This crisis has brought devastating consequences to our local economy and impacted our most vulnerable communities. To achieve economic democracy, we must respond quickly with resources and capacity,” he said. “These robust financial programs will aid small businesses to help them build back stronger than before.”

 

Meanwhile, Doris, who, as reported by Norwood News, was appointed to his latest position on May 11, said, “Now more than ever, Black, Latinx, and Asian businesses are struggling with access to capital. The launch of these programs is a targeted approach to provide relief efforts in communities that need it most.” Doris added, “The City is committed to making sure all small businesses have the resources they need to get them back on their feet during these extraordinary times.”

 

The COVID-19 pandemic has disproportionately impacted minority communities. Over 60,000 businesses in these communities, including restaurants, retail stores, salons, daycares, and more, have been historically blocked from accessing capital – and face a higher risk of closing. The taskforce on racial inclusion and equity has worked with SBS to address these issues in neighborhoods with a high percentage of other health and socioeconomic disparities.

 

NYC LMI Storefront Loan

SBS has partnered with the New York City Economic Development Corporation and Pursuit BDC on a $35 million loan vehicle.

 

Storefront businesses with at least two but fewer than 100 employees who are located in LMI neighborhoods will be eligible to apply for a zero-interest loan up to $100K. The loan can be used to help businesses restart or continue operations after experiencing challenges from COVID-19.

 

Businesses who would like to apply for the loan must:

 

• Be a storefront business located within an LMI zip code
• Have business operations since or before Jan. 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 open for this loan on Monday, Nov. 30.

 

Reducing Business Debt

The Interest Rate Reduction Grant will help reduce the interest expense owed on an existing loan with select Community Development Financial Institutions (CDFI). CDFIs focus on serving businesses that cannot easily access capital and creating opportunities that positively impact the communities they serve. SBS has partnered with 11 CDFIs who work primarily with Asian, Black, Latinx, and immigrant business owners.

 

The grant will free up cash flow for businesses that can be repurposed to help restart or maintain operations. Businesses must have an existing loan with CDFIs listed below, and should contact their CDFI to confirm if they are eligible to apply.

 

• Accompany Capital (previously Business Center for New Americans)
• Ascendus (previously Accion East)
• BOC Capital
• Greater Jamaica Development Corporation (GJDC)
• Harlem Entrepreneurial Fund
• Renaissance Economic Development Corporation
• The Bronx Overall Economic Development Corporation (BOEDC)
• TruFund Financial Services
• Upper Manhattan Empowerment Zone Development Corporation (UMEZ)
• Washington Heights and Inwood Development Corporation (WHIDC)
• The Working World DBA Seed Commons

 

The list of CDFIs mentioned above can also be found at www.nyc.gov/cdfigrant.

 

Strategic Impact COVID-19 Commercial District Support Grant

The Strategic Impact COVID-19 Commercial District Support grant will provide funding to community-based development organizations (CBDOs) to implement local COVID-19 recovery support to small businesses. The funds will be used to conduct outreach, provide technical assistance to connect small businesses, increase awareness and comprehension of new City and State rules and regulations, and strengthen merchant relationships to foster collaboration and increased local organizing. 

 

$700,000 will be available over the next six months to 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-based development organizations that serve a single-neighborhood, CBDOs that serve multiple neighborhoods or a borough, and organizations that can provide organizing and technical assistance to neighborhood-serving organizations across the city. Organizations interested in applying should visit www.nyc.gov/strategicimpactgrant.

 

News of the new assistance was welcomed by Bronx officials.

 

“Programs that bring access to financial and technical assistance to the businesses hardest hit by this pandemic is much needed good news right before the holidays,” said Lisa Sorin, President, Bronx Chamber of Commerce. “We thank the Mayor and City agencies that are working toward helping our low income, minority owned, mom & pop stores stay open for business. The Bronx Chamber of Commerce stands ready to get this information into the hands of our businesses to make sure they access this help to sustain and/or reopen their businesses.”

 

“We’re grateful to the City for acknowledging the devastating impact COVID-19 has had on low income communities and communities of color,” said Anthony Ramirez II of The Bronx Beer Hall and Small Business Sector Advisory Council. “We believe the introduction of these small business supports will provide business owners some relief during the ongoing pandemic. We look forward to continuing our work with the Advisory Council as the City develops new ways to provide and improve access to capital for businesses in our communities.”