The Department of Small Business Services (SBS), Goldman Sachs 10,000 Small Businesses, BOC Capital Corp. and the Surdna Foundation have announced a new source of capital for small businesses in NYC that have secured work on public or private construction contracts. Through $3.5 million in funding from Goldman Sachs 10,000 Small Businesses and Surdna Foundation to BOC Capital Corp, small business owners in New York City will be able to access capital to finance construction contract expenses and grow their businesses. This mobilization loan fund will also target contractors working with the City’s Build It Back program— which helps eligible homeowners and landlords rebuild homes that were damaged by Hurricane Sandy—to provide them with an additional option for financing recovery work.
“Small businesses are New York City’s economic engine, and one of their greatest needs is access to financing,” said Maria Torres-Springer, Commissioner of the NYC Department of Small Business Services. “In 2013, NYC Business Solutions helped connect more than 900 businesses to more than $45 million in capital, and thanks to Goldman Sachs 10,000 Small Businesses, BOC Capital, and Surdna, there will now be even more financing options open to minority and women-owned businesses, small businesses working on Sandy recovery work, and any business working on a private or public contract.”
“Through our 10,000 Small Businesses program, we’ve seen that access to capital is a key component in helping small businesses grow,” said Dina Powell, head of the Goldman Sachs Urban Investment Group and President of the Goldman Sachs Foundation. “We are pleased to work with our partners to get new funds into the hands of small business owners who need short-term working capital loans in order to bid and deliver on more meaningful contracts.”
“As a mission-based lender, BOC Capital is looking forward to helping minority-owned, woman-owned and small-scale construction contractors succeed and grow,” said Nancy Carin, Executive Director of BOC Capital Corp. “Thanks to this innovative collaboration, BOC Capital is intensifying its focus on the construction industry with the aim to improve the economic prospects of hard-working men and women in construction whose opportunities are hindered by lack of access to capital and management support.”
“The loan fund continues Surdna’s commitment to sustaining existing—and creating new—quality jobs for people of color, immigrants, women, and low-income communities,” said Phillip Henderson, President of the Surdna Foundation. “By providing needed capital at rates they can afford, the fund is not only growing small businesses in places where they are most needed, it is helping communities become more sustainable.”
“We are excited that the Department of Small Business Services partnered with the private sector to help local businesses take advantage of available Sandy recovery projects. Helping the local economy while we rebuild is a win-win,” said Kathryn Mallon, Build it Back Program Director.
A total of $3.5 million is available through the new funding source, with Goldman Sachs 10,000 Small Businesses contributing a $2.8 million senior loan, and Surdna Foundation committing $700,000 of subordinate capital to BOC Capital Corp., a non-profit Community Development Financial Institution focused on providing loans to minority-owned small businesses and micro-enterprises in low-income and underrepresented communities. Surdna Foundation has also committed up to $480,000 in grants to help operationalize the loan fund and build BOC Capital’s capacity to provide hands-on technical assistance to small businesses during the fund’s expected 3-year term. Loans originated through this fund will range from $20,000 to $150,000, with a monthly interest rate of less than one percent, a term of up to 12 months, and can be used to cover contract-related labor and equipment costs.
In order to be eligible for the new loan funds, businesses must: be in operation for at least 2 years and planning to grow; earn revenues between $100,000 to $7 million; employ a minimum of two (2) permanent or temporary employees; have already secured a construction contract; and be authorized to do business in the New York metropolitan area.
Loan applicants should contact their local NYC Business Solutions Center, which provides free services to help businesses in New York City start, operate, and grow. The Centers are located in all five boroughs and have relationships with a variety of alternative lenders, to help connect small businesses with capital. Other available services include business courses, recruitment, pro-bono legal assistance, help navigating government, and more.
For more information on alternative lending options and how to apply, visit www.nyc.gov/nycbusiness, call 311, or visit an NYC Business Solutions Center.
About the Department of Small Business Services
The Department of Small Business Services (SBS) makes it easier for businesses in New York City to start, operate and expand by providing direct assistance to business owners, fostering neighborhood development in commercial districts, and linking employers to a skilled and qualified workforce. For more information on all of SBS’ services, go to www.nyc.gov/sbs.
About Goldman Sachs 10,000 Small Businesses
Goldman Sachs 10,000 Small Businesses is a $500 million investment to help small businesses in the United States create jobs and economic growth by providing entrepreneurs with a practical business education, access to capital and business support services. The program is based on the broadly held view of leading experts that greater access to this combination of education, capital and support services best addresses barriers to growth. The program is active in urban and rural communities across the United States. Sites include Chicago, Cleveland, Detroit, Houston, Long Beach, Los Angeles, Miami, New Orleans, New York, Philadelphia and Salt Lake City. Access to capital is also available in parts of seven states: Kentucky, Maine, Montana, Oregon, Tennessee, Virginia and Washington. For more information, visit www.gs.com/10000smallbusinesses
About BOC Capital
BOC Capital Corp. is a Community Development Financial Institution and SBA Microloan Intermediary dedicated to providing financing and management support to underserved entrepreneurs and small businesses to launch, stabilize and grow. BOC Capital provides loans from $1,000 to $150,000 to community businesses in New York City, Westchester County and Long Island., along with pre and post-loan technical assistance. BOC Capital has loaned over $9.5 million to small businesses including contract-based loans for design/manufacturers and M/WBE contractors. Affiliate Business Outreach Center Network delivers comprehensive microenterprise and small business development services through local centers in all five NYC boroughs with a focus on underserved communities and immigrant, minority, women and low-income entrepreneurs.
About Surdna Foundation
The Surdna Foundation seeks to foster sustainable communities in the United States -- communities guided by principles of social justice and distinguished by healthy environments, strong local economies, and thriving cultures.