Amalgamated Bank, Bank of America and TD Bank will provide $40 million to two New York City programs that help minority and women-owned business enterprises and small businesses get affordable loans and help the city's economy to grow, Mayor Bill de Blasio announced on Friday.
The Contract Financing Loan Fund and the Emerging Developer Loan Fund are two financial programs established by the de Blasio Administration to address historic barriers faced by many MWBEs and small businesses in accessing capital. The new money builds on the city’s initial investment of $20 million, so that MWBEs and small businesses will now have access to $60 million in total revolving loan funding.
“By making an additional $40 million available in affordable loans, these banks are invested in the success of minority and women-owned businesses across the city,” de Blasio said. “These new commitments will help us continue working to overcome the historic barriers that hold back small businesses, especially those run by women and people of color.”
The breakdown of these investments is as follows: $20 million from Amalgamated to the EDLF, $10 million from Bank of America to the CFLF and $10 million from TD to the CFLF.
“I know firsthand the difficulty of securing the necessary financial tools to sustain and grow your business,” said Jonnel Doris, Director of the Mayor’s Office of MWBEs. “With the Contract Financing Loan Fund and the Emerging Developer Loan Fund, we are chipping away at the financial barriers faced by countless MWBEs and small businesses. Today’s $40 million commitment will help continue our work in creating an economy that works for all New Yorkers – regardless of race, gender or ethnicity.”
Since 2017, the CFLF has provided funding for MWBEs and small businesses contracting with the city. These firms have had access up to $500,000 in loans at a 3% interest rate. Access to this financing has let companies work on over $38.5 million worth of city contracting business. The Department of Small Business Services manages and administers the CFLF. Since 2016, the EDLF has provided low-interest loans ranging from $100,000 to $2.5 million to emerging developers and MWBEs. With the addition of $20 million, the EDLF be now able to help emerging developers with 40 new loans that could create up to $150 million in development opportunities and an estimated 6,000 jobs over a five-year period. The New York City Economic Development Corp. manages and administers the EDLF.
In fiscal 2017, the city awarded over $1 billion to MWBEs, a measure that only encompasses mayoral agencies. Taking into account non-mayoral agencies, the city has awarded over $6 billion to MWBEs since the start of the de Blasio Administration.
De Blasio’s goals to expand economic opportunity for MWBEs include certifying 9,000 MWBEs by the end of fiscal 2019; awarding 30% of the value of city contracts to MWBEs by the end of fiscal 2021; and awarding $16 billion to MWBEs by the end of fiscal 2025.