A report by New York City Superintendents reveals some very interesting statistics for anyone with a passion for business. In 2017, GDP for a country of $1.5 trillion – enough to beat Canada’s entire GDP is New York a country on its own. What’s more, the economy is anticipated to grow to up to $2.5 trillion by 2035. This shows that there are still many opportunities that can be exploited, particularly by small businesses.
It’s no surprise, then, that a report from Small Business First shows there are more than 200,000 businesses operating in New York City. Among them, 98% are small (less than 100 employees) and 89% are very small (less than 20 employees). However, things on the pitch do not at all times look rosy, and as opportunities may exist, challenges are also common. That’s why Excel Capital Management is at all times available when someone needs a business loans in New York City.
One of the challenges facing many businesses in the city is the high rent. Rental rates in NYC are amongst the highest in the nation, forcing small businesses to downsize or relocate. Salaries are also high for workers in the states to adequately compensate workers in expensive cities, and regulations, taxes, and fines aren’t any joke. In the midst of all this, entrepreneurs must survive and even thrive, and what better way to get up than through a business loan. If you are considering applying for a loan, these are some of the avenues you should pay attention to.
state/government programs
There are several programs set up to help small businesses in New York City by providing funding. It was founded because small businesses in New York City provide employment for more than half of the population in the private sector. Some of these programs include:
NYC Economic Development Corporation (NYCEDC)
Any small business in NYC can qualify for a loan under the NYC Capital Access Loan Guarantee Program. Small businesses are classified as businesses with fewer than 100 employees, and they may even consider applying to get started, but your business must be located in the NYC area. You can receive up to $250,000 through this program, so it is absolutely worth looking at.
These business loans are offered in the form of a line of credit to allow for the acquisition of material, business expenses, expansion, etc. This program guarantees 40% of the loan amount, leaving the rest up to you as determined by the lender – NYCEDC doesn’t offer direct funding.
SBA financing
SBA loans are the most common across the country, and are also available in New York City. All you need to do is locate a lender that offers SBA loans because the Small Business Administration, like the NYCEDC, is not a financier. There are many lenders in the NYC area, many of whom are possibly very near your business, so it should not be a problem.
OUR Credit Fund
This is a program meant particularly to help women entrepreneurs in NYC. The requirements are that the business must have been in operation for more than one year and generated $50,000 in annual revenue in the previous fiscal year. Qualified applicants can receive a business loan of up to $100,000.
Another
It’s impossible to list all the programs available to small businesses in NYC, but some include:
- Brooklyn Fund
- Excelsior Growth Fund
- Business Center for New Americans
Alternative lenders
Today, one doesn’t need to go to a bank to receive a business loan like you did more than a decade ago. Many FinTech companies have sprung up that are also providing funding even through mobile devices. What’s more, these loans are even quicker to apply for and receive than conventional lenders. If interested, please take a look at these companies online:
- Fund box
- Cabbage
- Crossroads place
- Funding
An example of such a loan is a construction business loans.
Merchant Advances
For cash businesses, a fast way to receive funds can be through a merchant cash advance (MCA). This is where the lender gives you financing and you must pay each day of the sales made that day. Payments are automatically deducted by your credit card processor after each business day and sent to the lender until the whole loan is paid off. MCA are known for their high interest rates, but on the other hand, you can receive your funds within a few days, making them ideal for emergency situations.
Conventional lenders
We put this option at the end because you must have considered it. Banks and credit unions can provide funds for your business, either as term loans or lines of credit. Lines of credit are at all times preferable because you can only borrow what you need and do not pay interest on money you do not even use.
