The announcement of the Non-Emergency Fund: Mayor Eric Adams has announced the distribution of more than $85 million to small businesses

Meru Sikder : New York

According to newly published information from the New York State Department of Labor, New York City has set an all-time record for job creation, with 4,730,066 jobs in the city’s history. Mayor Eric Adams and New York City Department of Small Business Services (SBS) Commissioner Kevin D. Kim celebrated this significant achievement on Monday, March 11.

As part of the administration’s efforts to revitalize the economy and create more equal opportunities, Adams announced the progress of the NYC Small Business Non-Emergency Fund. Through this fund, SBS and its partners will assist over 1,046 companies with temporary, low-interest capital totaling more than $85 million. This fund is the city’s largest public-private partnership fund targeting small businesses.

Since the start of Adams’ administration, seven small businesses have opened, creating nearly 300,000 jobs. The SBS Workforce1 Career Center system has also assisted over 44,000 New Yorkers in finding employment and placement simultaneously. According to the New York City Economic Development Corporation (NYCEDC), small businesses with fewer than 50 employees accounted for 45% of the city’s total job growth in the first months of 2022, contributing over $3.2 billion directly to the economy.

In January 2023, the city and its partners launched the $75 million Small Business Opportunity Fund, which includes commitments to provide loans of up to $250,000 to eligible small businesses. The fund aims to expand access to capital for historically underserved communities by removing barriers such as application fees and minimum credit scores. As a result, nearly 80% of loans from the fund have gone to minority- or women-owned businesses, representing more than double the national average income. Loans from the fund have averaged $80,000, and small business owners have used them for purposes such as refinancing high-interest loans, expanding new stores, hiring more New Yorkers, and enhancing their other businesses.

SBS Commissioner Kevin D. Kim said, “The $85 million Non-Emergency Fund has had a significant impact on our area and the business community by directing investment among individuals. We have provided loans to over 1,000 business owners, each with their own stories. I want to thank Goldmans Sachs, Mastercard Center for Inclusive Growth, and all our Community Development Financial Institutions for their participation in the city’s largest public-private partnership to date.”

NYCEDC President and CEO Andrew Kimball praised Mayor Adams for his astute and effective efforts to revive the city’s economy since the start of his administration. He said, “With record-breaking job creation, it’s clear that New York City has not only rebounded but has significantly progressed. Mayor Adams deserves credit for his economic agenda. NYCEDC will continue to work with the public and private sectors to build an inclusive economy and position New York City as a global leader.”

Asha Pampi, Global Head of Corporate Engagement at Goldman Sachs, said, “Through five rounds of small business engagement, job creation, expansion of financing, and products and services, this fund is making a real impact on investment in New York. Without the efforts of the Community Development Financial Institutions (CDFI) Network to increase access to capital in New York, this significant progress would not have been possible.”

Shamina Singh, Founder and President of Mastercard Center for Inclusive Growth, said, “Through public-private collaboration, we have been able to support small businesses with their unique needs, provide solutions for business scalability, and connect them with resources. We are proud to support the Non-Emergency Fund and are committed to fostering the development and growth of small businesses in New York City.”

Eight Community Development Financial Institutions, including Accion Capital, Ascendus, BOC Capital Corporation, Harlem Entrepreneurial Fund (HEF), Grameen America, Pursuit, Renaissance Small Business Services, and TruFund, have participated in loan distribution as partners of SBS.

If the Non-Emergency Fund is closed, small businesses can receive free financial assistance from SBS to establish connections with affordable financial institutions, including the NYC Fund Finder, an online hub that links small businesses with community development financial institutions.