NY Mayor, Goldman Sachs, and Others Develop Fund for Struggling Small Businesses
New York City Mayor Eric Adams, Goldman Sachs, and Mastercard are joining forces to help small business owners get back on their feet by creating a $75 Million NYC Small Business Opportunity Fund.
On January 23, according to the city’s official website, Mayor Adams announced during an official press conference that the loan program would give about 1,500 local businesses that meet their requirements “a loan up to $250,000 at a market-leading rate of 4%.”
This Opportunity Fund comes nearly three years after small business owners fought to stay afloat throughout the pandemic.
Bloomberg reports that from the years 2019 to 2021, over 4,000 privately-owned businesses shut down. In the press conference, Mayor Adams addressed the negative impact small businesses encountered and his future aspirations.
“Small businesses kept us going through the pandemic, and they are leading the way during our economic recovery. Now, we are giving back with the NYC Small Business Opportunity Fund,” Mayor Adams said, according to the city.
“This new loan fund will help us build on that progress and represents the next great step forward in our city’s partnership with our entrepreneurs and small business owners,” he added.
Bloomberg also stated that the program obtained a generous donation through the mayor’s partnerships with Goldman Sachs and Mastercard. Goldman Sachs reportedly gave about $50 million to the program. At the same time, Mastercard will help educate small business owners and put up $500,000.
The City of New York will pay the remaining balance through its other partners Community Development Financial Institutions and Community Reinvestment Fund. In order to qualify for a loan, the small business should make less than $5 million annually and is required to be located in New York City.