Small Business Resource Guide
Content
ResouRces for small Businesses in need of cRedit
The Council of the City of New York Christine C. Quinn, Speaker Domenic M. Recchia, Jr. Chair, Committee on Finance
New York Bankers Association Michael P. Smith, President and CEO
New York Business Development Corporation Patrick Mackrell, President and CEO NYC Department of Small Business Services Robert Walsh, Commissioner
Diana Reyna Chair, Committee on Small Business
www.council.nyc.gov
t
his guide was produced by the new York city council, in collaboration with the new York Bankers association, the new York Business development corporation, the new York city department of small Business services, and alternative lenders, to aid small businesses seeking credit resources.
Resources for small Businesses in need of credit
There are times when traditional financial institutions may not be able to provide your business with the credit that it needs. Your business may be healthy and prepared to borrow but still fall outside current underwriting standards. Start-up or early stage businesses may be new to borrowing and in need of help organizing their accounting, documentation, and planning in a way that shows that the business will be creditworthy. Depending on your needs, there are providers who can assist you. Credit is available. But standards have tightened and small businesses have to prepare carefully and may need to look to alternative sources if they wish to access it. This guide is to assist small businesses seeking credit. Section i lists resources for financial and technical assistance to help prepare small businesses to become creditworthy and to make a successful loan application. Section ii provides a guide to alternative sources of credit for small businesses.
section i: help Getting Ready to Borrow: financial and technical assistance
“Lenders emphasized the need to receive complete and accurate documents from small business loan applicants …” Board of Governors of the Federal Reserve System, July 21, 2010.
nYc Business solutions
The nYC Business Solutions is a set of services offered by the Department of Small Business Services to help businesses start, operate, and expand in new York City. Services are provided at no cost and address the needs of entrepreneurs and businesses of any size and at any stage.
services include:
• • • • • • • • Business Courses Legal Assistance Financing assistance Incentives Navigating Government Recruiting and Training Employees Selling to Government Minority- and Women-Owned Business Enterprise Certification
financing services include:
• • • • • identifying appropriate lenders for a business’ unique situation, including banks, credit unions, microcredit institutions, and other alternative lenders; Addressing application deficiencies; Assisting in loan packaging; Leveraging relationships with lenders to improve chances of a successful award; Exploring credit repair options for customers that do not qualify for a loan.
The nYC Business Solutions Centers are located in all five boroughs. Call 311 and ask for nYC Business Solutions. Visit www.nyc.gov/nycbusiness for more information or call your local Center to make an appointment.
Center Locations
Bronx Center 555 Bergen Avenue Bronx, NY 10455 Phone: 718-732-7590 Brooklyn Center 9 Bond Street, 5th Floor Brooklyn, NY 11201 Phone: 718-875-3400 Lower Manhattan Center 79 John Street New York, NY 10038 Phone: 212-618-8914 Queens Center 168-25 Jamaica Av, 2nd Fl. Jamaica, NY 11432 Phone: 718-577-2148 Staten Island Center 120 Stuyvesant Place, 3rd Fl. Staten Island, NY 10301 Phone: 718-285-8400 Upper Manhattan Center 215 West 125th Street, 6th Fl. New York, NY 10027 Phone: 917-493-724
Washington Heights Center 76 Wadsworth Avenue, 3rd Floor New York, NY 10033 Phone: 212-453-5366
new York state small Business development centers
The new York State Small Business Development Center (SBDC) is a nationally accredited program providing expert management and technical assistance to start-up and existing businesses across the state since 1984. Administered by State University of new York (SUnY), the SBDC’s principal partners are the City University of new York (CUnY) and private institutions (PACE University and Columbia University) in new York City. The SBDC is funded by the U.S. Small Business Administration (SBA), the State of new York, and host higher education institutions. The SBDC works closely with new York State economic development agencies, faculty, staff, and students at host institutions, as well as representatives from private business to focus resources on assisting small business and entrepreneurs. SBDC prioritizes business advisement services to women, veterans, and people with special needs, as well as minority clients. SBDC’s overall focus is on projects that advance the job development, investment, and economic growth priorities of clients in fulfillment of new York State economic stabilization, with an emphasis on manufacturers, exporters, and technology-oriented firms. SBDC has over 3.2 million clients who have invested over $4.2 billion in New York State businesses, creating 1.41 million jobs. Through direct advisement, the SBDC provides a range of management and technical assistance services including: • • • • • • • • • Business plan development capital access accounting financial planning loan packaging Procurement exporting and international trade disaster recovery and business continuity sustainability (energy efficiency)
more information:
SBDC has several locations throughout new York City:
Bronx:
ulas neftci, director
clarence stanley, director
Baruch College, SBDC
Lehman College SBDC
250 Bedford Park Blvd., West oG 007 Bronx, nY 10468-1589 718-960-8806 or 718-960-8697 [email protected]
55 Lexington Avenue room 2-140 new York, nY 10010 646-312-4790 [email protected] Rebecca Rodriguez, director
Brooklyn:
The Columbia-Harlem SBDC Columbia University/SEAS
500 West 120th Street, room 510 new York, nY 10027 Tel. 212-854-6444 fax. 212-864-0104 [email protected]
catalina castano, director
New York City College of Technology SBDC
25 Chapel Street, 11th floor Howard Building Brooklyn, nY 11201 718-797-0187 [email protected]
Queens:
Rosa figueroa, interim director
Brooklyn’s outreach offices:
LaGuardia Community College SBDC
St. Joseph’s College
265 Clinton Ave Brooklyn, nY 11205 Wednesdays 9:00am - 5:00pm Phone: 718-940-5720 sunset Park 5th avenue Bid 5116A 5th Avenue 2nd floor Brooklyn, nY 11220 Tuesday: 9am - 5pm Phone: 718-439-7767
29-10 Thomson Ave., room C916 Long island City, nY 11101 718-482-5303 [email protected] harry Wells, director
York College SBDC
94-50 159th Street Science Building, room 007 Jamaica, nY 11451-9902 718-262-2880 [email protected]
manhattan:
ira davidson, director
staten island:
dean Balsamini, director
Pace University SBDC
163 William Street, 16th floor new York, nY 10038 212-618-6655 [email protected]
College Of Staten Island SBDC
2800 Victory Blvd., Building 2A rm. 300 Staten island, nY 10314-9806 718-982-2560 [email protected]
Women Business centers (WBcs)
The WBCs provide business training, counseling, mentoring and other businessrelated assistance to women and other entrepreneurs. Through the management and technical assistance provided by the WBCs, entrepreneurs, especially women who are economically or socially disadvantaged, are offered comprehensive business training, counseling, mentoring and a vast array of topics in many languages to help them start and grow their own businesses.
the WBcs have locations in the Bronx, Brooklyn and Queens: Bronx Women’s Business Resource center hunts Point economic development corp.
355 food Center Drive Suite C-104 Bronx, new York 10474 director: marcia cameron Phone: 718-842-1717 ext. 225 Email: [email protected] - Website: www.hpwbrc.org
oc Women’s Business center Business outreach center network, inc.
85 South oxford Street, 2nd floor Brooklyn, nY 11217 director: liliana Blanco Phone: 718-624-9115 Email: [email protected] Website: http://www.bocnet.org/boc/boc_services_womens_business_ctr.asp
Women’s Business center local development corporation of east new York
80 Jamaica Avenue, 3rd fl Brooklyn, nY 11207 director: elisa Balabram Phone: 718-385-6700 Email: [email protected] - Website: http://www.ldceny.org/ldceny/women.htm
Queens Women’s Business center Queens economic development corp.
120-55 Queens Blvd., Suite 309 Kew Gardens, nY 11424 director: Johanna maynard Phone: 718-263-0546 Email: [email protected] - Website: www.queensny.org
section ii: small Business lending sources
New York Business Development Corporation / Credit for Success
new York Business Development Corporation (nYBDC) works in conjunction with lending partners to provide loans to small businesses, with products for established businesses and start-up businesses or those in their early stages. funds may be used for working capital, refinancing, business acquisition, purchase of equipment or owner-occupied real estate and improvement to real estate including leaseholds. Basic eligibility Requirements: • • • • no minimum credit score; Borrower must demonstrate sufficient cash flow to service the debt on a historical or reasonably projected basis; Personal guaranty from all owners of 20% or more of the business; Collateral required if available.
Basic loan details size Rates $25,000 to $5.5 million Variable at Prime plus 2.75% (currently 6%); fixed at 5% to 8% terms/costs 3 to 20 years application fee $150-$1,200 depending on the size of the loan, closing costs paid by the borrower from loan proceeds, generally not more than 1% of the loan amount. Required documentation: • • • • Personal history and financial statement from owner; Balance Sheet and income statements dated within 90 days of application; Three years of federal tax returns for existing business or all returns for business less than three years old; Business plan for start-ups and early stage businesses.
more information: www.nybdc.com or 212-785-5642
nYBdc’s credit for success
nYBDC has also created the Credit for Success Program. nYBDC has contracted with many of its member banks to form a regional lending consortium to provide small businesses with an independent “second look” at a loan application that has been declined by the bank of account.
eligibility:
Applications for the Credit for Success program will be accepted from small businesses located in new York State. The small business must first make the loan application to and be declined by its bank of account. Additionally, the small business must agree to seek business counseling from the SBDC serving the region. The counseling must be substantially completed prior to the approval of the loan. Applicants must meet all eligibility requirements of the SBA.
uses of loan funds:
refinance, working capital and equipment purchases.
loan amounts:
Loan amounts shall be not less than $25,000 and not more than $150,000.
sBa Guaranty:
All loans shall be guaranteed by the SBA for at least 85% of the principal balance of the loan. in order to be approved for a loan the borrower must meet all of SBA’s eligibility requirements.
loan application:
Loan applicant must first apply to its current bank of account for the loan and be declined in writing. The applicant must next contact SBDC at www.nyssbdc. org or by telephone at 1-800-732-7232 to request an appointment for business counseling. once contact has been made with the SBDC and a counselor assigned, the applicant or the counselor should contact nYBDC via email at [email protected] or by telephone at 1-800-923-2504.
accion usa
accion usa helps qualified small businesses grow with:
• • • Business loans up to $50,000 for profitable businesses with 6 or more months of operation. Start-up loans up to $30,000 for businesses with more than 6 months of operation, but that are not yet profitable. Transition loans up to $30,000 for the purchase of an existing business or a change in business location.
Basic eligibility Requirements:
• • • • • Credit score of 575 or more. no bankruptcy in the last 12 months and no foreclosure in the last 24 months. Current on home mortgage & business rents over the past 12 months. Current on personal and business bills, with no past-due accounts in excess of $3,000. A cosigner to the loan who is not involved in the business and/or a business plan/marketing study with 12 months of projected financials may be required for transition and start-up business loans.
Basic loan details:
size Rates terms other costs Up to $50,000 8.99% to 15.99% Up to 60 Months Closing Costs of 3% to 5% of loan amount $30 application fee (financed into loan)
Required documentation:
• • • • • financial statements and/or bank statements Verification of non-business income Business certificate including required licenses & corporate resolution Documentation of loan purpose (estimates, supplier, or dealer information) Tax returns for the last 1-2 years (if available)
more information:
www.accionusa.org or 1-800-245-078
Project enterprise
Project Enterprise provides loans, development services, and networking opportunities to entrepreneurs and small business in under-resourced communities in new York City.
• • • Direct loans available to businesses with 3 or more years of operation; Special loan programs for start-up businesses; funds may be used for equipment, inventory, leasehold improvements, and working capital.
Basic eligibility Requirements:
• • • • no minimum credit score no collateral requirement Business cannot be in firearms or sex-related businesses Training classes required for start-up businesses
Basic loan details:
size Rates terms/costs $500 - $12,000 12% 6 to 24 months Application fee up to $350 deducted from disbursement amount
Required documentation:
• • financial statements one year business tax returns
more information:
www.projectenterprise.org or 212-678-6734, ext. 11
seedco financial services
Seedco financial Services provides loans and other services to small businesses and nonprofit organizations that cannot access affordable financing through banks. it offers loans to small businesses with 100 or fewer employees that operate and/or hire most of their employees from economically distressed and traditionally underserved areas or who are minority- or women-owned businesses enterprises. Eligible businesses include those that have been in operation for at least one year with annual revenues of at least $200,000. funds can be used for working capital, inventory, equipment, leasehold improvements, and other approved activities.
Basic eligibility Requirements:
• • • • • • • Employ 100 or fewer employees Minimum credit score of 600 Minimum of one year in operation Minimum annual revenues of $200,000 Maximum loan amount of 25% of annual revenues Personal guaranty required from all principals owning 20% or more no minimum collateral requirement
Other requirements may apply.
Basic loan details:
size $50,000-$250,000 (higher amounts are available subject to restrictions) Rates 8.00% - 10.00% terms 6 to 60 months other costs Application fee $250, closing fee 3% of borrowed amount, transactions costs paid by borrower.
Required documentation:
• • • • • • Completed loan application form Audited financial statements or federal corporate tax returns for three prior years Monthly financial statements for current fiscal year Personal financial statements of principals Existing lease and loan documents Corporate documents www.seedcofinancial.org or [email protected] 877-296-8878
more information:
u.s. small Business administration (sBa)
SBA is the federal small business services administration providing assistance to small businesses. SBA provides financial and technical assistance through its affiliates such as the SBDC and WBCs. SBA itself does not make loans, but it does guarantee loans made to small businesses by private and other institutions. SBA sets the guidelines for the loans, which are then made by its partners (lenders, community development organizations, and micro-lending institutions). SBA guarantees that these loans will be repaid, thus eliminating some of the risk to the lending partners. When a business applies for a SBA loan, it is actually applying for a commercial loan, structured according to SBA requirements with an SBA guaranty. Additionally, the SBA guarantees surety bonds that are required for government contracting. Like the loan programs, SBA does not issue surety bonds; rather, it provides and manages surety bond guarantees for qualified small and emerging businesses through the Surety Bond Guarantee (SBG) Program. SBA reimburses a participating surety (within specified limits) for the losses incurred as a result of a contractor’s default on a bond. The SBG Program was developed to help small and minority contractors who cannot obtain surety bonds through regular commercial channels. Through the program, SBA makes an agreement with a surety guaranteeing that SBA will assume a predetermined percentage of loss in the event the contractor should breach the terms of the contract. SBA’s guarantee gives sureties an incentive to provide bonding for eligible contractors, thereby strengthening a contractor’s ability to obtain bonding and greater access to contracting opportunities. finally, SBA also provides for a number of sources of alternative lending, as outlined in the section below.
micro lenders
The Micro Loan Program was developed to increase the availability of very small loans to prospective small business borrowers. Under the program SBA makes funds available to nonprofit intermediaries, who in turn make loans to eligible borrowers in amounts up to a maximum of $35,000, which, under the new federal Jobs Bill, will increase to $50,000 during fiscal Year 2011.
manhattan
East Harlem Business Capital Corp.
mr. Jose Garza, executive director 2261-63 1st Avenue, 3rd fl. new York, nY 10035 Phone: 212- 427-6590 fax: 212- 427-6537 E-mail: [email protected] E-mail: [email protected] Service Area: East Harlem, Manhattan
Washington Heights & Inwood Development Corp.
Renaissance Economic Development Corp.
mr. dennis c. Reeder, executive director 57 Wadsworth Avenue new York, nY 10036 Phone: 212-795-1600 fax: 212-781-4051 E-mail: [email protected] Service Area: Washington Heights and inwood
mr. Jeremy fine, manager 1 Pike St. new York, nY 10002 Phone: 212- 964-6022 fax: 212- 964-6003 E-mail: [email protected] Service Areas: All 5 Boroughs Serves refugees & immigrants
Center for Community Development for New Americans, Inc.
ms. Yanki tshering, executive director 120 Broadway, Ste 230 new York, nY 10271 Phone: 212-898-4112 fax: 212-898-7821 E-mail: [email protected]
mr. steven Vogel, ceo 1460 Broadway, 14th fl. new York, nY 10036 Phone: 212-735-4043 fax: 212-735-4090 E-mail: [email protected] Service Area: Queens, Brooklyn & Uptown Manhattan
Grameen America Inc.
BRooKlYn
BOC Capital Corp. Angel Fund
mr. hector davis, loan officer 85 South oxford Street Brooklyn, nY 11217 Phone: 718- 624-9115 fax: 718- 246-1881 E-mail: [email protected] E-mail: [email protected] Service Area: All 5 Boroughs ms. Joanne Grazi, director 379 Kings Highway Brooklyn, nY 11223 Phone: 718-787-1400 ext-15 fax: 718-787-0695 E-mail: [email protected] Service Area: Brooklyn & Manhattan
small Business investment companies
SBA provides venture capital through the Small Business investment Company (SBiC) Program, a unique public-private investment partnership. SBA itself does not make direct investments. it works with SBiCs, which are privately owned and managed investment firms licensed by SBA to provide financing to small businesses with private capital they raise and with funds borrowed at favorable rates through SBA. More information can be found at: http://www.sba.gov/financialassistance/borrowers/vc/.
More information:
federal Plaza, ste. 3100 new York, nY 10278 Tel.: 212- 264-4354 fax: 212- 264-4963 TDD: 212- 264-9147 http://www.sba.gov/financialassistance
community development credit unions (cdcu)
The Community Development Credit Unions (CDCU) provide loans to small businesses in low- and moderate-income communities. More than sixty years ago, a small number of credit unions were founded with the specific mission of serving low-income and minority communities beyond the reach of banks and mainstream credit unions. The CDCU serves populations generally considered the hardest to serve, including low-income wage earners, recent immigrants, and people with disabilities.
For more information about CDCU, please contact:
melanie stern senior Program officer National Federation of Community Development Credit Unions 116 John Street, 33rd floor new York, nY 10038 T 212.809.1850 x211 f 212.809.3274 www.cdcu.coop
November 2010
The Council of the City of New York Christine C. Quinn, Speaker Domenic M. Recchia, Jr. Chair, Committee on Finance
New York Bankers Association Michael P. Smith, President and CEO
New York Business Development Corporation Patrick Mackrell, President and CEO NYC Department of Small Business Services Robert Walsh, Commissioner
Diana Reyna Chair, Committee on Small Business
www.council.nyc.gov
t
his guide was produced by the new York city council, in collaboration with the new York Bankers association, the new York Business development corporation, the new York city department of small Business services, and alternative lenders, to aid small businesses seeking credit resources.
Resources for small Businesses in need of credit
There are times when traditional financial institutions may not be able to provide your business with the credit that it needs. Your business may be healthy and prepared to borrow but still fall outside current underwriting standards. Start-up or early stage businesses may be new to borrowing and in need of help organizing their accounting, documentation, and planning in a way that shows that the business will be creditworthy. Depending on your needs, there are providers who can assist you. Credit is available. But standards have tightened and small businesses have to prepare carefully and may need to look to alternative sources if they wish to access it. This guide is to assist small businesses seeking credit. Section i lists resources for financial and technical assistance to help prepare small businesses to become creditworthy and to make a successful loan application. Section ii provides a guide to alternative sources of credit for small businesses.
section i: help Getting Ready to Borrow: financial and technical assistance
“Lenders emphasized the need to receive complete and accurate documents from small business loan applicants …” Board of Governors of the Federal Reserve System, July 21, 2010.
nYc Business solutions
The nYC Business Solutions is a set of services offered by the Department of Small Business Services to help businesses start, operate, and expand in new York City. Services are provided at no cost and address the needs of entrepreneurs and businesses of any size and at any stage.
services include:
• • • • • • • • Business Courses Legal Assistance Financing assistance Incentives Navigating Government Recruiting and Training Employees Selling to Government Minority- and Women-Owned Business Enterprise Certification
financing services include:
• • • • • identifying appropriate lenders for a business’ unique situation, including banks, credit unions, microcredit institutions, and other alternative lenders; Addressing application deficiencies; Assisting in loan packaging; Leveraging relationships with lenders to improve chances of a successful award; Exploring credit repair options for customers that do not qualify for a loan.
The nYC Business Solutions Centers are located in all five boroughs. Call 311 and ask for nYC Business Solutions. Visit www.nyc.gov/nycbusiness for more information or call your local Center to make an appointment.
Center Locations
Bronx Center 555 Bergen Avenue Bronx, NY 10455 Phone: 718-732-7590 Brooklyn Center 9 Bond Street, 5th Floor Brooklyn, NY 11201 Phone: 718-875-3400 Lower Manhattan Center 79 John Street New York, NY 10038 Phone: 212-618-8914 Queens Center 168-25 Jamaica Av, 2nd Fl. Jamaica, NY 11432 Phone: 718-577-2148 Staten Island Center 120 Stuyvesant Place, 3rd Fl. Staten Island, NY 10301 Phone: 718-285-8400 Upper Manhattan Center 215 West 125th Street, 6th Fl. New York, NY 10027 Phone: 917-493-724
Washington Heights Center 76 Wadsworth Avenue, 3rd Floor New York, NY 10033 Phone: 212-453-5366
new York state small Business development centers
The new York State Small Business Development Center (SBDC) is a nationally accredited program providing expert management and technical assistance to start-up and existing businesses across the state since 1984. Administered by State University of new York (SUnY), the SBDC’s principal partners are the City University of new York (CUnY) and private institutions (PACE University and Columbia University) in new York City. The SBDC is funded by the U.S. Small Business Administration (SBA), the State of new York, and host higher education institutions. The SBDC works closely with new York State economic development agencies, faculty, staff, and students at host institutions, as well as representatives from private business to focus resources on assisting small business and entrepreneurs. SBDC prioritizes business advisement services to women, veterans, and people with special needs, as well as minority clients. SBDC’s overall focus is on projects that advance the job development, investment, and economic growth priorities of clients in fulfillment of new York State economic stabilization, with an emphasis on manufacturers, exporters, and technology-oriented firms. SBDC has over 3.2 million clients who have invested over $4.2 billion in New York State businesses, creating 1.41 million jobs. Through direct advisement, the SBDC provides a range of management and technical assistance services including: • • • • • • • • • Business plan development capital access accounting financial planning loan packaging Procurement exporting and international trade disaster recovery and business continuity sustainability (energy efficiency)
more information:
SBDC has several locations throughout new York City:
Bronx:
ulas neftci, director
clarence stanley, director
Baruch College, SBDC
Lehman College SBDC
250 Bedford Park Blvd., West oG 007 Bronx, nY 10468-1589 718-960-8806 or 718-960-8697 [email protected]
55 Lexington Avenue room 2-140 new York, nY 10010 646-312-4790 [email protected] Rebecca Rodriguez, director
Brooklyn:
The Columbia-Harlem SBDC Columbia University/SEAS
500 West 120th Street, room 510 new York, nY 10027 Tel. 212-854-6444 fax. 212-864-0104 [email protected]
catalina castano, director
New York City College of Technology SBDC
25 Chapel Street, 11th floor Howard Building Brooklyn, nY 11201 718-797-0187 [email protected]
Queens:
Rosa figueroa, interim director
Brooklyn’s outreach offices:
LaGuardia Community College SBDC
St. Joseph’s College
265 Clinton Ave Brooklyn, nY 11205 Wednesdays 9:00am - 5:00pm Phone: 718-940-5720 sunset Park 5th avenue Bid 5116A 5th Avenue 2nd floor Brooklyn, nY 11220 Tuesday: 9am - 5pm Phone: 718-439-7767
29-10 Thomson Ave., room C916 Long island City, nY 11101 718-482-5303 [email protected] harry Wells, director
York College SBDC
94-50 159th Street Science Building, room 007 Jamaica, nY 11451-9902 718-262-2880 [email protected]
manhattan:
ira davidson, director
staten island:
dean Balsamini, director
Pace University SBDC
163 William Street, 16th floor new York, nY 10038 212-618-6655 [email protected]
College Of Staten Island SBDC
2800 Victory Blvd., Building 2A rm. 300 Staten island, nY 10314-9806 718-982-2560 [email protected]
Women Business centers (WBcs)
The WBCs provide business training, counseling, mentoring and other businessrelated assistance to women and other entrepreneurs. Through the management and technical assistance provided by the WBCs, entrepreneurs, especially women who are economically or socially disadvantaged, are offered comprehensive business training, counseling, mentoring and a vast array of topics in many languages to help them start and grow their own businesses.
the WBcs have locations in the Bronx, Brooklyn and Queens: Bronx Women’s Business Resource center hunts Point economic development corp.
355 food Center Drive Suite C-104 Bronx, new York 10474 director: marcia cameron Phone: 718-842-1717 ext. 225 Email: [email protected] - Website: www.hpwbrc.org
oc Women’s Business center Business outreach center network, inc.
85 South oxford Street, 2nd floor Brooklyn, nY 11217 director: liliana Blanco Phone: 718-624-9115 Email: [email protected] Website: http://www.bocnet.org/boc/boc_services_womens_business_ctr.asp
Women’s Business center local development corporation of east new York
80 Jamaica Avenue, 3rd fl Brooklyn, nY 11207 director: elisa Balabram Phone: 718-385-6700 Email: [email protected] - Website: http://www.ldceny.org/ldceny/women.htm
Queens Women’s Business center Queens economic development corp.
120-55 Queens Blvd., Suite 309 Kew Gardens, nY 11424 director: Johanna maynard Phone: 718-263-0546 Email: [email protected] - Website: www.queensny.org
section ii: small Business lending sources
New York Business Development Corporation / Credit for Success
new York Business Development Corporation (nYBDC) works in conjunction with lending partners to provide loans to small businesses, with products for established businesses and start-up businesses or those in their early stages. funds may be used for working capital, refinancing, business acquisition, purchase of equipment or owner-occupied real estate and improvement to real estate including leaseholds. Basic eligibility Requirements: • • • • no minimum credit score; Borrower must demonstrate sufficient cash flow to service the debt on a historical or reasonably projected basis; Personal guaranty from all owners of 20% or more of the business; Collateral required if available.
Basic loan details size Rates $25,000 to $5.5 million Variable at Prime plus 2.75% (currently 6%); fixed at 5% to 8% terms/costs 3 to 20 years application fee $150-$1,200 depending on the size of the loan, closing costs paid by the borrower from loan proceeds, generally not more than 1% of the loan amount. Required documentation: • • • • Personal history and financial statement from owner; Balance Sheet and income statements dated within 90 days of application; Three years of federal tax returns for existing business or all returns for business less than three years old; Business plan for start-ups and early stage businesses.
more information: www.nybdc.com or 212-785-5642
nYBdc’s credit for success
nYBDC has also created the Credit for Success Program. nYBDC has contracted with many of its member banks to form a regional lending consortium to provide small businesses with an independent “second look” at a loan application that has been declined by the bank of account.
eligibility:
Applications for the Credit for Success program will be accepted from small businesses located in new York State. The small business must first make the loan application to and be declined by its bank of account. Additionally, the small business must agree to seek business counseling from the SBDC serving the region. The counseling must be substantially completed prior to the approval of the loan. Applicants must meet all eligibility requirements of the SBA.
uses of loan funds:
refinance, working capital and equipment purchases.
loan amounts:
Loan amounts shall be not less than $25,000 and not more than $150,000.
sBa Guaranty:
All loans shall be guaranteed by the SBA for at least 85% of the principal balance of the loan. in order to be approved for a loan the borrower must meet all of SBA’s eligibility requirements.
loan application:
Loan applicant must first apply to its current bank of account for the loan and be declined in writing. The applicant must next contact SBDC at www.nyssbdc. org or by telephone at 1-800-732-7232 to request an appointment for business counseling. once contact has been made with the SBDC and a counselor assigned, the applicant or the counselor should contact nYBDC via email at [email protected] or by telephone at 1-800-923-2504.
accion usa
accion usa helps qualified small businesses grow with:
• • • Business loans up to $50,000 for profitable businesses with 6 or more months of operation. Start-up loans up to $30,000 for businesses with more than 6 months of operation, but that are not yet profitable. Transition loans up to $30,000 for the purchase of an existing business or a change in business location.
Basic eligibility Requirements:
• • • • • Credit score of 575 or more. no bankruptcy in the last 12 months and no foreclosure in the last 24 months. Current on home mortgage & business rents over the past 12 months. Current on personal and business bills, with no past-due accounts in excess of $3,000. A cosigner to the loan who is not involved in the business and/or a business plan/marketing study with 12 months of projected financials may be required for transition and start-up business loans.
Basic loan details:
size Rates terms other costs Up to $50,000 8.99% to 15.99% Up to 60 Months Closing Costs of 3% to 5% of loan amount $30 application fee (financed into loan)
Required documentation:
• • • • • financial statements and/or bank statements Verification of non-business income Business certificate including required licenses & corporate resolution Documentation of loan purpose (estimates, supplier, or dealer information) Tax returns for the last 1-2 years (if available)
more information:
www.accionusa.org or 1-800-245-078
Project enterprise
Project Enterprise provides loans, development services, and networking opportunities to entrepreneurs and small business in under-resourced communities in new York City.
• • • Direct loans available to businesses with 3 or more years of operation; Special loan programs for start-up businesses; funds may be used for equipment, inventory, leasehold improvements, and working capital.
Basic eligibility Requirements:
• • • • no minimum credit score no collateral requirement Business cannot be in firearms or sex-related businesses Training classes required for start-up businesses
Basic loan details:
size Rates terms/costs $500 - $12,000 12% 6 to 24 months Application fee up to $350 deducted from disbursement amount
Required documentation:
• • financial statements one year business tax returns
more information:
www.projectenterprise.org or 212-678-6734, ext. 11
seedco financial services
Seedco financial Services provides loans and other services to small businesses and nonprofit organizations that cannot access affordable financing through banks. it offers loans to small businesses with 100 or fewer employees that operate and/or hire most of their employees from economically distressed and traditionally underserved areas or who are minority- or women-owned businesses enterprises. Eligible businesses include those that have been in operation for at least one year with annual revenues of at least $200,000. funds can be used for working capital, inventory, equipment, leasehold improvements, and other approved activities.
Basic eligibility Requirements:
• • • • • • • Employ 100 or fewer employees Minimum credit score of 600 Minimum of one year in operation Minimum annual revenues of $200,000 Maximum loan amount of 25% of annual revenues Personal guaranty required from all principals owning 20% or more no minimum collateral requirement
Other requirements may apply.
Basic loan details:
size $50,000-$250,000 (higher amounts are available subject to restrictions) Rates 8.00% - 10.00% terms 6 to 60 months other costs Application fee $250, closing fee 3% of borrowed amount, transactions costs paid by borrower.
Required documentation:
• • • • • • Completed loan application form Audited financial statements or federal corporate tax returns for three prior years Monthly financial statements for current fiscal year Personal financial statements of principals Existing lease and loan documents Corporate documents www.seedcofinancial.org or [email protected] 877-296-8878
more information:
u.s. small Business administration (sBa)
SBA is the federal small business services administration providing assistance to small businesses. SBA provides financial and technical assistance through its affiliates such as the SBDC and WBCs. SBA itself does not make loans, but it does guarantee loans made to small businesses by private and other institutions. SBA sets the guidelines for the loans, which are then made by its partners (lenders, community development organizations, and micro-lending institutions). SBA guarantees that these loans will be repaid, thus eliminating some of the risk to the lending partners. When a business applies for a SBA loan, it is actually applying for a commercial loan, structured according to SBA requirements with an SBA guaranty. Additionally, the SBA guarantees surety bonds that are required for government contracting. Like the loan programs, SBA does not issue surety bonds; rather, it provides and manages surety bond guarantees for qualified small and emerging businesses through the Surety Bond Guarantee (SBG) Program. SBA reimburses a participating surety (within specified limits) for the losses incurred as a result of a contractor’s default on a bond. The SBG Program was developed to help small and minority contractors who cannot obtain surety bonds through regular commercial channels. Through the program, SBA makes an agreement with a surety guaranteeing that SBA will assume a predetermined percentage of loss in the event the contractor should breach the terms of the contract. SBA’s guarantee gives sureties an incentive to provide bonding for eligible contractors, thereby strengthening a contractor’s ability to obtain bonding and greater access to contracting opportunities. finally, SBA also provides for a number of sources of alternative lending, as outlined in the section below.
micro lenders
The Micro Loan Program was developed to increase the availability of very small loans to prospective small business borrowers. Under the program SBA makes funds available to nonprofit intermediaries, who in turn make loans to eligible borrowers in amounts up to a maximum of $35,000, which, under the new federal Jobs Bill, will increase to $50,000 during fiscal Year 2011.
manhattan
East Harlem Business Capital Corp.
mr. Jose Garza, executive director 2261-63 1st Avenue, 3rd fl. new York, nY 10035 Phone: 212- 427-6590 fax: 212- 427-6537 E-mail: [email protected] E-mail: [email protected] Service Area: East Harlem, Manhattan
Washington Heights & Inwood Development Corp.
Renaissance Economic Development Corp.
mr. dennis c. Reeder, executive director 57 Wadsworth Avenue new York, nY 10036 Phone: 212-795-1600 fax: 212-781-4051 E-mail: [email protected] Service Area: Washington Heights and inwood
mr. Jeremy fine, manager 1 Pike St. new York, nY 10002 Phone: 212- 964-6022 fax: 212- 964-6003 E-mail: [email protected] Service Areas: All 5 Boroughs Serves refugees & immigrants
Center for Community Development for New Americans, Inc.
ms. Yanki tshering, executive director 120 Broadway, Ste 230 new York, nY 10271 Phone: 212-898-4112 fax: 212-898-7821 E-mail: [email protected]
mr. steven Vogel, ceo 1460 Broadway, 14th fl. new York, nY 10036 Phone: 212-735-4043 fax: 212-735-4090 E-mail: [email protected] Service Area: Queens, Brooklyn & Uptown Manhattan
Grameen America Inc.
BRooKlYn
BOC Capital Corp. Angel Fund
mr. hector davis, loan officer 85 South oxford Street Brooklyn, nY 11217 Phone: 718- 624-9115 fax: 718- 246-1881 E-mail: [email protected] E-mail: [email protected] Service Area: All 5 Boroughs ms. Joanne Grazi, director 379 Kings Highway Brooklyn, nY 11223 Phone: 718-787-1400 ext-15 fax: 718-787-0695 E-mail: [email protected] Service Area: Brooklyn & Manhattan
small Business investment companies
SBA provides venture capital through the Small Business investment Company (SBiC) Program, a unique public-private investment partnership. SBA itself does not make direct investments. it works with SBiCs, which are privately owned and managed investment firms licensed by SBA to provide financing to small businesses with private capital they raise and with funds borrowed at favorable rates through SBA. More information can be found at: http://www.sba.gov/financialassistance/borrowers/vc/.
More information:
federal Plaza, ste. 3100 new York, nY 10278 Tel.: 212- 264-4354 fax: 212- 264-4963 TDD: 212- 264-9147 http://www.sba.gov/financialassistance
community development credit unions (cdcu)
The Community Development Credit Unions (CDCU) provide loans to small businesses in low- and moderate-income communities. More than sixty years ago, a small number of credit unions were founded with the specific mission of serving low-income and minority communities beyond the reach of banks and mainstream credit unions. The CDCU serves populations generally considered the hardest to serve, including low-income wage earners, recent immigrants, and people with disabilities.
For more information about CDCU, please contact:
melanie stern senior Program officer National Federation of Community Development Credit Unions 116 John Street, 33rd floor new York, nY 10038 T 212.809.1850 x211 f 212.809.3274 www.cdcu.coop
November 2010
