INCREASING LENDING TO SMALL LOCAL BUSINESSES

From Christine Quinn, Speaker of the New York City Council:

Dear New Yorker, 

This past month the NYC Council unveiled a new initiative to help local small businesses, called Credit Ready NYC.

Although much of our city is slowly recovering from the recession, many small businesses are still finding it hard to move ahead in today's tight credit market.  

A recent survey by the Federal Reserve Bank of New York found that while there's a strong demand for loans among small businesses in New York City, only half of the 59 percent of owners who applied were successful in obtaining at least some of the requested credit.

Credit Ready NYC is a two-part initiative aimed at increasing lending to struggling small businesses.

First, we will partner with banks and the NYC Department of Small Business Services (SBS) to connect owners who've been unable to access credit through traditional banks to alternative lenders, where appropriate.  This will include the New York Business Development Corporation's (NYBDC) "Credit for Success - Second Look" program – a $2 million initiative launched by the Council earlier this year to provide loans of $25,000 to $150,000 to eligible small businesses.

Second, we will embark on a major outreach effort to educate owners about the various sources of credit available to them.  We will do this two ways: 

• by working with the New York Bankers Association and the New York Business Development Corporation to distribute a Small Business Resource Guide at participating banks, small business development centers and other key locations across the city; and

• by working with the city's chambers of commerce and other small business organizations to provide onsite technical assistance and counseling at a series of credit fairs around the five boroughs.

Supporting small business isn't just about strengthening the economy, it's also about encouraging the type of talent, drive and ingenuity that has long fueled our City.

With Credit Ready NYC, owners will have a better chance of finding the financing they need to successfully grow their business, and we look forward to working SBS, NYBDC and our other partners in the community to help struggling businesses take advantage of this new initiative.

For more information about Credit Ready NYC, click here or e-mail us directly at speakerquinn [at] council.nyc.com.

Thanks!

Sincerely,

Christine C. Quinn

Speaker 

NYC Council

Domenic M. Recchia, Jr.

Chair, Finance Committee

NYC Council

Diana Reyna

Chair, Small Business Committee

NYC Council

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