Small Business Loans NYC: Your 2019 Guide To Local Lending

When you decided to launch your small business in New York City, you were likely drawn to the city’s vibrant energy, exciting communities, and world-class workforce. You were probably less enthusiastic when you realized everything operating a business in the City entails: insurance policies, unexpected expenses at every turn, and oh-so-many regulations.

Getting a business off the ground — and then keeping it running — can be daunting for even the most seasoned business owners. For first-time owner, it can be even tougher: sometimes it feels like the deck is stacked against you.

The good news is that even though starting a business can be an isolating experience, there are countless financial institutions and programs that exist solely to help business owners thrive. Many of them are based right here in New York City, meaning you get to have a face-to-face relationship with someone who is (quite literally) invested in your success!

The following report explains some of the best local loan options available for New York City business owners in 2019. The best part? It’s written in plain English… from one NYC business owner to another! No advanced degree or knowledge of financial jargon required. (After all, you’re probably paying your CPA or CFO a pretty good chunk of change… leave the jargon to them!)

Small Business Loans NYC: Top Lenders for NYC Small Business Loans

Just like there’s no one-size-fits-all when it comes to loans, there’s no one right lender, either. Big, national banks are a great fit for some businesses, while smaller, local banks make perfect partners for others. Still other business owners find that credit unions, government programs, or non-profits are best aligned with their needs. Here’s a list of a few of New York City’s top lenders for small businesses.

1. Chase Bank

Chase Bank is based in New York City, but it also happens to be the largest bank in the country. The bank is one of the top financiers of small-business loans nationwide: In 2018 alone, Chase’s SBA-backed business loans totaled $68 million to more than 550 small businesses across the five boroughs. In addition to SBA loans, the bank offers flexible financing and business lines of credits for qualifying businesses.

2. Cross River

Cross River describes itself as a “trusted financial services organization that merges the established expertise of a bank, with the innovation and product offering of a technology company.” Founded in 2008, the company’s home office is just outside the City in Fort Lee, New Jersey. They’ve earned rave reviews from their small-business clients for competitive rates and terms, especially for SBA-backed loans. Customers can borrow up to $5 million on a 7(a) SBA-backed loan and up to $18 million for 504 loans with repayment periods of up to 25 years.

3. Brooklyn Cooperative Federal Credit Union

Brooklyn Coop is one of the city’s top small-business lenders. It’s a credit union, not a bank — which means it’s a non-profit institution. It considers loan applications “from any business regardless of its history,” offering flexible repayment terms of up to 12 years. Its startup loans start at $500 and go up to $15,000, while established companies can borrow up to $50,000.

4. NYC Capital Access Loan Guaranty Program

The NYC Capital Access Loan Guaranty Program is a public-private partnership that helps micro and small businesses who have been unable to access conventional bank loans get up to $250,000 to be used for working capital, leasehold improvements, and equipment purchases.

5. Nonprofit Finance Fund

If you’re a nonprofit or social-enterprise startup looking for funding, the Nonprofit Finance Fund’s New York office is an option to investigate. NFF currently manages over $347 million in assets and has provided $875 million in financing over the past 40 years. It’s a US Community Development Financial Institution (CDFI), meaning its focus is on making affordable loans available to help a community’s least-advantaged citizens.

Small Business Loans NYC: Top Traditional Lenders for NYC Small Business Loans

Looking for a traditional lender in NYC? Here’s where to start. The banks and credit unions below all offer favorable terms for SBA-backed loans, bank-term loans, and various other types of small-business lending.

1. Bank of America

Bank of America offers several types of loans to business owners. Most require a business to have been operating for two years and generating $250,000 in annual revenue.

2. Wells Fargo

Wells Fargo is another national bank with many loan choices. It offers loans as small as $10,000 for qualifying businesses.

3. TD Bank

TD Bank calls itself “America’s most convenient bank,” in part because it’s open seven days a week. Its direct loans offer up to $1,000,000 to entrepreneurs for expenses ranging from manufacturing to equipment to real estate.

4. Empire State Bank

Empire State Bank is a full-service, community-oriented bank that opened in 2004 to help serve the needs of all New Yorkers, including small-business owners. It offers various loan and lending options.

5. New York University Federal Credit Union

The New York University Federal Credit Union offers loans of up to $250,000 to help with everything from inventory and working capital to housing needs, plus various micro-loans. In order to join, you or an immediate family member must be an NYU alum, student, or an active or retired employee, faculty member, or staff member.

Small Business Loans NYC: Top Government Programs for NYC Small Business Loans

Various programs exist to help small businesses thrive in the boroughs. Here are a few examples.

1. Contract Financing Loan Fund

If you’re hoping to get a contract as a contractor or subcontractor with a New York City entity or agency but need working capital to do so, NYC’s Contract Financing Loan might be for you. It offers qualifying business owners up to $500,000 at an annual interest rate of 3% to help kickstart contract work.

2. M/WBE Opportunities

If you’re a minority or woman business owner, you may qualify for various incentives from the City. The Office of Minority and Women-Owned Business Enterprises was established in 2016 to help level the playing field for diverse founders. Its initiatives include awarding $20 billion to M/WBEs by 2025 and ensuring 30% of City contracts go to M/WBEs by 2021.

3. Veteran Institute for Procurement

If you’re a veteran, the Veteran Institute for Procurement is a resource dedicated to helping you secure federal contracts and navigate lending options available to you.

4. Business Center for New Americans

The Business Center for New Americans offers small business loans ranging from $75,000 to $250,000 to small businesses in Queens and Staten Island, and to specifically immigrant, refugee or women-owned businesses in Brooklyn, the Bronx, and Manhattan.

5. SBA Loans

The SBA guarantees loans of virtually every amount from $500 to $5.5 million. There are SBA offices in every borough that can help you identify what loan is right for your business and find the right lending partner. You can even get matched with a mentor to help you as you grow.

Small Business Loans NYC: Top Funds/Non-profit programs for NYC Small Business Loans

Many funds and non-profit lending programs exist to help entrepreneurs. These options don’t go through traditional banks, although investment criteria and repayment terms can be similar. Here are a few of the top options.

1. Innovation Venture Capital Fund

New York State operates its own $100 million venture capital fund to invest in early-stage startups. It is mainly focused on companies developing new technologies that are aiding job creation and driving economic growth. Its direct-equity investments typically range from $500,000 to $1.5 million.

2. Accion

Accion is a non-profit lender that offers highly-customized loans to business owners of every type. It has special programs for women, veterans, Native Americans, and minority business owners looking to grow their organizations.

3. TruFund

TruFund is a non-profit financial institution that provides financing and business services to “small businesses that cannot access affordable financing through traditional sources.”

4. Grameen America

Grameen America has invested more than $1.2 billion to women entrepreneurs via microloans. Their focus is on serving current and aspiring female business owners living at or below the federal poverty line.

5. Excelsior Growth Fund

Excelsior Growth Fund offers various types of loans to businesses that have been operating for two years that have at least two employees. Their focus is on spurring economic development and job creation.

Small Business Loans NYC: Online Small Business Loan Options

You can get just about anything online these days, so it should come as no surprise that online small business loans exist, too. Various lenders, like Kapitus, offer loans of all types and sizes. Each institution sets its own requirements, and they can vary greatly from lender to lender. If you’re considering an online small business loan, make sure to read — really read — all the fine print. It’s paramount that you understand all the terms and conditions of the agreement you’re entering. The last thing you want to do is get into a long-term partnership with a lender that may not provide the flexibility your business needs.

Grants for NYC Small Business Owners

Many entrepreneurs think grants are the Holy Grail of funding options, likening them to “free money.” While that may be true in theory, it’s important to note that most grants come with very specific conditions for how money can — and can’t — be spent. They’re also hard to come by since competition is tough.

Many grants are industry-specific; come with employee-hiring stipulations; or are offered only to entrepreneurs of a certain background, race, ethnicity, or gender. If you meet the criteria, here are five annual grants for which your business may want to consider applying.

1. FedEx Small Business Grant Contest

Every year, FedEx awards grants to 10 or more entrepreneurs to help their businesses grow. In 2019, the company awarded business services and $50,000 to a grand-prize winner, $30,000 to a runner-up, and $15,000 each to eight third-place small businesses

2. Citizens Committee for New York City

The Citizens Committee for New York City offers micro-grants (usually under $5,000) on a rolling basis for specific projects to help beautify specific neighborhoods, schools, and/or blocks.

3. Office of Mental Health: Forensic Homeless Intensive Case Management Program

Each year, the State grants $338,000 to businesses that assist mentally ill homeless individuals returning to New York City from New York State prisons with accessing housing and developing skills to remain independent and in stable housing.

4. Visa Everywhere Initiative

Visa is one of literally dozens of corporations with grant programs and contests. Like FedEx, it launched a corporate grant program several years ago aimed at helping entrepreneurs. Each year, the company awards a $50,000 grant to the startup that best demonstrates an ability to “solve payment challenges of tomorrow.”

5. Economic Development Grants

If your business needs to purchase land, equipment, or even fixtures for a new office, you may qualify for one of many economic development grants available through the State of New York.

For more grants, visit the New York State Grants Gateway portal.

As Frank Sinatra so famously put it, if you can make it here, you really can make it anywhere. The most important thing is not to be afraid to ask for help: after all, New Yorkers are well known for looking after our own.

Did you know that, according to a state report, more than 98% of New York’s businesses employ less than 100 people? Almost half (45%) of the state’s businesses have sought financing in the past 12 months, and 70% have annual revenues of less than $1 million.

Let Kapitus help you find the perfect local loan solution to help you and your business grow. Get simple, personalized, no-pressure information on the best options for your business today.

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COVID-19, so far, has had far-reaching impacts on global trade. Your business could be one of the many curious about protecting cash flow during the current COVID-19 market disruption.

U.S.-based small and mid-sized businesses import one-third of all U.S. imports according to census data from 2016. Since exports from areas impacted by the coronavirus are already happening, businesses face a variety of challenges. Lower stock levels, missing components, and top-selling products could be in dwindling supply – all of which decrease cash flow.

If your business stands to endure a slowdown on account of COVID-19, you can still keep operations above water while trade turmoil settles down. Below you’ll find multiple strategies for protecting cash flow, taking an inside-out approach starting with business operations.

Analyze AP/AR

While it’s likely already part of your periodic financial review strategy, now’s the time to take a deep dive into accounting as the first strategy for protecting cash flow. Both accounts receivable (AR) and accounts payable (AP) might be due for a strategy shift. Both can also help bring much-needed cash in-house or keep cash-on-hand for a bit longer than usual.

• AP: Look for subscription-based vendors and consider suspending service on non-essential office supplies and services. Reach out to vendors and leverage your good payment history to negotiate early pay discounts or extended due dates for a defined period of time.
• AR: Extend early pay discounts to customers with timely payment histories. For past due receivables, consider establishing payment plans or discounting invoices to bring that cash on board.

Keep in mind that your customers and vendors might also be experiencing effects from the COVID-19 market disruptions. The strategies above can help keep cash flow steady and prevent the need to reduce headcount. You might also find that you build new goodwill with those on the other end of your AP/AR efforts, as they’re likely looking for cost-saving and improved cash flow measures right now as well.

Explore Bridge Funding

While COVID-19 won’t be around forever, just how long it will be around for remains unknown. That’s why today is an ideal time to explore bridge funding options as a strategy for protecting cash flow.

On-demand funding tools like a business line of credit can help you tap funds as needed and fill in cash flow gaps. You can also explore purchase order financing if you need to switch-up suppliers during lean cash flow times.

More conventional bridge funding solutions like business loans can help fund operations for the long-haul. Many loans offer flexible terms where payment frequency adjusts to meet your cash flow, which could be advantageous in the COVID-19 business environment.

Invite Solutions to Protect Your Cash Flow

Transparency is key during turbulent business times. That’s why it’s critical to bring your entire team up to speed on how it’s anticipated that COVID-19 will impact the business. Once your team is up to speed, invite them to contribute to conversations surrounding protecting cash flow.

For many small and mid-sized businesses, departments/employees can get unintentionally siloed. There’s reduced visibility to how other departments/employees manage day-to-day operations. Management might also have reduced visibility to how each department/employee could help keep operations going during periods of reduced sales or diminished supply.

Create a call for ideas. Encourage employees to cross-collaborate on solutions. Explore ways to dig deeper into your existing customer base versus a focus on new customer acquisition.

A commitment to transparency and collaboration can help surface efforts that could incrementally improve your cash flow. You also might discover a greater sense of team ownership in the company’s day-to-day operations and new initiatives that will boost business well beyond the days of COVID-19.

You now have three strategies for protecting cash flow during the COVID-19 market disruption, all originating from inside your company. The best part about all of these strategies is that they’re not just for times where a health concern is complicating your supply chain. Rather, they’re enduring strategies that all businesses can use year-round to keep operations lean. You could maintain a well-cultivated talent roster and deepen employee participation in the company’s short- and long-term goals.

 

Copyright 2021 • Kapitus • All Rights Reserved

In today’s digital landscape, a small business website is one of the most important tools any business owner can have. It’s a place where your audience learns about who you are, what you do, and how you can help them. But what are the essential areas all small business websites should focus on when creating or updating their sites? We asked Katie O’Brien, a website designer and brand strategist, what small business owners should focus on. Here’s what she had to say.

1. A Simple Home Page

You don’t need to do all of the things on your website’s homepage. Focus instead on being clear and concise. O’Brien says, “Visitors should immediately — without scrolling — know exactly what you offer and if it’s for them. This makes the difference between someone landing on your page and immediately clicking the back button to go back to their search results…or sticking around and taking action on your website.”

2. Hours of Operation

When are you open for business? While you might think this is common knowledge, new-to-you customers might not have any clue when you do business. If you own a traditional storefront, this is especially important, but it’s important for remote workers or digital storefronts as well.

3. Testimonials

If you haven’t collected praise from your previous clients or customers, now’s the time. Your prospects want to read recommendations from people who have worked with you.

“The testimonials not only validate your products and services,” says O’Brien, “but they allow potential clients to imagine what it would be like working with you or purchasing from you.”

So, where should you place this praise? O’Brien suggests using them in two different ways. She says, “Testimonials should be strategically placed throughout your website to support the individual goals of each page on your website. You should also have a dedicated place on your website to list out all testimonials.”

4. A Clear List of Services

“Clarity is key with your services page,” says O’Brien. But what does that mean? If you have multiple offers or products, you may have a lot to say. However, there is a way to keep the main page structured. O’Brien says, “If you have multiple offerings consider having a simpler overview on your services page and an individual page for each service.”

“You’ll want to get clear on the action you want your potential clients to take. Should they book a call? Purchase a product? Once the call to action is identified everything should be built out around that.”

5. An About Page About the Both of You

Don’t think that the about page should be about only you and your business. Since this is one of the most viewed pages on any small business website, use it to remind your audience what problem (of theirs) you can solve. For example, a nutritionist might talk about how diet culture creates self-esteem issues, and then go on to talk about how her mission is to teach people to eat healthy in a way that makes them feel good about themselves.

6. Social Media and Contact Information

You want to keep people on your website until they’re ready to follow your calls-to-action, such as booking a call. However, not everyone who visits your small business website is primed to buy — though they may want to keep following you and reach out when they are ready. Here’s where directing them to your social media accounts and having a clear contact page come in handy.

But, O’Brien says, “Social media information and your contact information serve two completely different purposes. Most of the time if someone wants to contact you they have a very specific reason – for instance, a question before they buy. Those who are connecting with you on various social media outlets just want updates from you… some of the time.”

To help those clients wanting to buy, make your contact page easy to navigate to at all times, and keep the copy simple. As for social media, O’Brien suggests placing them in the footer of the small business website.

The key is keeping viewers on your site, until they’re ready to take the steps to move into the direction you’re leading them via your copy and design, not lose them to social media.

This may seem like a lot to do on one small business website, but don’t stress. O’Brien says, “I think a lot of people feel websites are this super complicated formula, but they’re a lot simpler than most think. Clearly state what it is you do or provide and how they can move forward. That should be the primary focus of every website.”

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