Resources

for Small Businesses

in Need of Credit

The Council of the City of New York New York Bankers Association
Christine C. Quinn, Speaker Michael P. Smith, President and CEO
Domenic M. Recchia, Jr. New York Business Development Corporation
Chair, Committee on Finance Patrick Mackrell, President and CEO
Diana Reyna NYC Department of Small
Chair, Committee on Small Business Business Services
Robert Walsh, Commissioner

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 Queens Center
555 Bergen Avenue 168-25 Jamaica Av, 2nd Fl.
Bronx, NY 10455 Jamaica, NY 11432
Phone: 718-732-7590 Phone: 718-577-2148

Brooklyn Center Staten Island Center

9 Bond Street, 5th Floor 120 Stuyvesant Place, 3rd Fl.
Brooklyn, NY 11201 Staten Island, NY 10301
Phone: 718-875-3400 Phone: 718-285-8400

Lower Manhattan Center Upper Manhattan Center

79 John Street 215 West 125th Street, 6th Fl.
New York, NY 10038 New York, NY 10027
Phone: 212-618-8914 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

Baruch College, SBDC
Clarence Stanley, Director
55 Lexington Avenue Room 2-140
Lehman College SBDC New York, NY 10010
250 Bedford Park Blvd., 646-312-4790
West OG 007 sbdc@baruch.cuny.edu
Bronx, NY 10468-1589
718-960-8806 or 718-960-8697 Rebecca Rodriguez, Director
sbdc.bronx@lehman.cuny.edu
The Columbia-Harlem SBDC
Columbia University/SEAS
Brooklyn: 500 West 120th Street, Room 510
Catalina Castano, Director New York, NY 10027
New York City College of Tel. 212-854-6444
Fax. 212-864-0104
Technology SBDC sbdc@columbia.edu
25 Chapel Street, 11th Floor
Howard Building
Brooklyn, NY 11201
718-797-0187
Queens:
Rosa Figueroa, Interim Director
sbdc@citytech.cuny.edu
LaGuardia Community
Brooklyn’s Outreach Offices: College SBDC
St. Joseph’s College 29-10 Thomson Ave., Room C916
265 Clinton Ave Long Island City, NY 11101
Brooklyn, NY 11205 718-482-5303
Wednesdays 9:00am - 5:00pm sbdc@lagcc.cuny.edu
Phone: 718-940-5720
Harry Wells, Director
Sunset Park 5th Avenue BID York College SBDC
5116A 5th Avenue 94-50 159th Street
2nd Floor Science Building, Room 007
Brooklyn, NY 11220 Jamaica, NY 11451-9902
Tuesday: 9am - 5pm 718-262-2880
Phone: 718-439-7767 sbdc@york.cuny.edu

Manhattan: Staten Island:

Ira Davidson, Director Dean Balsamini, Director
Pace University SBDC College Of Staten Island SBDC
163 William Street, 16th Floor 2800 Victory Blvd., Building 2A Rm. 300
New York, NY 10038 Staten Island, NY 10314-9806
212-618-6655 718-982-2560
SBDC@Pace.edu sullivane@mail.csi.cuny.edu
Women Business Centers (WBCs)
The WBCs provide business training, counseling, mentoring and other business-
related 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: mcameron@hpedc.org - 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: lblanco@bocnet.org
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: elisab@ldceny.org - 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: jmaynard@queensny.org - 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 $25,000 to $5.5 million

Rates 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
secondlook@nybdc.com 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 Up to $50,000
Rates 8.99% to 15.99%
Terms Up to 60 Months
Other Costs 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 $500 - $12,000
Rates 12%
Terms/Costs 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

More Information:
www.seedcofinancial.org or smallbiz@seedco.org
877-296-8878
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. Washington Heights & Inwood
Mr. Jose Garza, Executive Director Development Corp.
2261-63 1st Avenue, 3rd Fl. Mr. Dennis C. Reeder,
New York, NY 10035 Executive Director
Phone: 212- 427-6590 57 Wadsworth Avenue
Fax: 212- 427-6537 New York, NY 10036
E-mail: jsgarza@ehbcc.org Phone: 212-795-1600
E-mail: esuriel@ehbcc.org Fax: 212-781-4051
Service Area: East Harlem, Manhattan E-mail: whidc@aol.com
Service Area: Washington Heights
Renaissance Economic and Inwood
Development Corp.
Mr. Jeremy Fine, Manager Center for Community Development
1 Pike St. for New Americans, Inc.
New York, NY 10002 Ms. Yanki Tshering, Executive Director
Phone: 212- 964-6022 120 Broadway, Ste 230
Fax: 212- 964-6003 New York, NY 10271
E-mail: info@renaissance-ny.org Phone: 212-898-4112
Service Areas: All 5 Boroughs Fax: 212-898-7821
Serves Refugees & Immigrants E-mail: ytshering@nyana.org

Grameen America Inc.

Mr. Steven Vogel, CEO
1460 Broadway, 14th Fl.
New York, NY 10036
Phone: 212-735-4043
Fax: 212-735-4090
E-mail: info@grameenamerica.com
Service Area: Queens, Brooklyn &
Uptown Manhattan

BROOKLYN
BOC Capital Corp. Angel Fund
Mr. Hector Davis, Loan Officer Ms. Joanne Grazi, Director
85 South Oxford Street 379 Kings Highway
Brooklyn, NY 11217 Brooklyn, NY 11223
Phone: 718- 624-9115 Phone: 718-787-1400 ext-15
Fax: 718- 246-1881 Fax: 718-787-0695
E-mail: hdavis@bocnet.org E-mail: info@angelfundnetwork.org
E-mail: boccapitalcorp@bocnet.org Service Area: Brooklyn & Manhattan
Service Area: All 5 Boroughs
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