Wondering if New York is the best place to start a business? More than 2 million small businesses seem to think it is. The Empire State has about 2.2 million small businesses, and there are many resources to help new and existing enterprises.
Once you’re ready ready to get (or increase) your share of that income potential, you may need funds to help you start or grow your business. And business loans provide just that.
Let’s look into where you can find business loans in New York, as well as some small business resources that could help you launch and thrive.
Local and State-Specific Business Loans in New York
Here are several loan programs available to businesses operating in the state of New York. Review the requirements to see the ones you may qualify for.
New York Forward Loan Fund 2
The New York Forward Loan Fund 2 program provides loans up to $150,000 with competitive fixed interest rates. Repayment is between 36 and 72 months, with no prepayment penalties or origination fees.
Your business might qualify if you have 100 or fewer full-time employees, you’ve been in operation for at least a year, and you have less than $5 million in annual revenue.
The NYC Future Fund
The NYC Future Fund will offer capital to new small businesses in New York. This fund focuses on early-stage businesses, Black, indigenous, and people of color (BIPOC) owners, and women entrepreneurs.
Requirements and application process haven't yet been released. Check NYC Funds Finder (the city’s first no-cost online capital marketplace for small business owners) for updates and other funding opportunities.
Contract Financing Loan Fund
This program is for businesses working or bidding on a contract with a New York City agency or city-funded entity and provides loans of up to $1,000,000 at an interest rate of 3%.
Qualifications are fairly simple. You must have an operating business and be seeking financing as a prime or subcontractor to use toward a contract with a city agency or city-funded entity.
Regional Revolving Loan Trust Fund Program (RRLTF)
The state-run RRLTF offers working capital loans of up to $100,000 or 90% of the total project cost, whichever is less.
This loan program gives priority to businesses that create or retain jobs, are in distressed areas of New York, or that are run by or employ minority or female entrepreneurs.
Main Street Capital Loan Fund
The Main Street Capital Loan Fund provides term loans of $100,000 or less to startups and early-stage businesses. The focus is on businesses in communities that have had difficulty getting credit or favorable terms.
To qualify, your business must:
- Be owned by a New York State resident
- Operate in New York State
- Have 100 or fewer full-time employees
- Have annual revenues of $5 million or less
- Be operational for 4 years or less
- Provide a personal guarantee from owners with more than a 20% ownership stake
Types of Business Loans Available in New York
Besides the New York-specific loans we've covered, there are other business loans available that you might consider.
SBA Loans
The Small Business Administration guarantees funds offered by lenders like SBG Funding. Typically, these loans have longer repayment periods and lower interest rates. For example, the SBA 504 loan has a long 25 year repayment period and is designed to help you finance a major fixed asset, like equipment or real estate.
Traditional Loans
Banks and credit unions offer business term loans in New York and other states. Start with where you have your business checking account, then explore other lenders to compare rates. U.S. Bank offers a variety of business financing options to explore.
Online-Only Lenders
Some lenders only offer online business loans. The benefit of working with online-only lenders like Funding Circle is that they often process loans quicker than others.
Microloans
If you need $50,000 or less, a microloan might be the best fit. Lenders like Accion Opportunity Fund as well as others offer smaller loans with short repayment periods.
Lines of Credit
If you'd rather have access to capital whenever you need it, a business line of credit gives you just that. Lenders like OnDeck approve you for a certain level of financing, which you can borrow from and pay back over and over.
Equipment Financing
If you're purchasing equipment, consider equipment financing solutions from a company like Samson Financing. The equipment acts as collateral, which secures the loan and helps you get a better rate.
Business Credit Cards
American Express and other lenders offer business credit cards you can use to make purchases for your business. Some offer rewards, so each purchase can help you accumulate points you can use for cash back and other perks.
Read more: Guide to financing for startups
New York Small Business Resources
If you're looking for help setting up your business or you want professional advice, there are plenty of small business resources in New York. Many are free.
Small Business Development Centers (SBDCs)
Small Business Development Centers are spread throughout the state, and offer a variety of free training and consulting services.
Immigrant Entrepreneur Center
The Immigrant Entrepreneur Center helps immigrants who want to own businesses. The center offers free English classes, business mentoring, tax and financial resources, and more.
Association of Procurement Technical Assistance Centers (PTAC)
More than 300 local PTAC offices serve most areas of the country. This resource provides training, workshops, counseling, and matchmaking for businesses that are interested in government contracting.
NYC Small Business Resource Network
The NYC Small Business Resource Network can give small businesses a free website and logo, marketing assistance, lease negotiations, and business planning.
Empire State Development Division of Small Business
You'll find a variety of technical assistance programs, lending programs, and financial resources for entrepreneurs at the Empire State Development Division.
NYC Small Business Services
NYC Small Business Services hosts informative and networking events, provides contracting opportunities, and connects entrepreneurs to business courses and legal services.
New York Small Business Grants
While researching business loans in New York, don't overlook grants. Grants are free money that you don’t have to pay back.
Market New York - Tourism Grant Program
You might be eligible for the Tourism Grant Program if your business will create an economic impact by increasing tourism throughout the state. Your business must be registered in New York and be one of the following:
- Not-for-profit corporation
- Municipality
- Tourism promotional agency (TPA)
- Public benefit corporation
- For-profit company
Global NY Fund Grant Program
Going global? The Global NY Fund Grant program provides grants of up to $25,000 to help companies start exporting or increase their global exports. This fund also provides grants of up to $100,000 to not-for-profit organizations that provide export assistance and trade education to New York State companies.
To be eligible, your business must be located in New York (operating for at least one year) with 500 or fewer employees in the state. You need to have plans to start exporting or expand your export sales in foreign markets. Other criteria specify that your business should be certified as a local producer, or that half the value of your finished product or service originates in New York State.
Small Manufacturers Modernization Grant
Manufacturers might be interested in a grant of $50,000 or more for investing in projects that will increase operational efficiencies and market competitiveness. This is for established companies. Your business must have:
- been in operation in New York for at least 10 years
- a minimum of 5 full-time permanent employees
- a maximum of 99 full-time permanent employees
Qualifying businesses must be in one of the following industries:
- Agribusiness and food production (including craft beverage)
- Biotech and life sciences
- Cleantech and renewable energy
- Defense systems (including aerospace)
- Industrial machinery and systems
- Materials processing
- Optics, photonics, and imaging
- Semiconductors
- Tech and electronics
- Transportation equipment
4 Steps to Prepare to Apply for Business Loans in New York
Once you decide which of these types of business loans in New York (or beyond) is the best fit, here's how you can get ready to file your application.
1. Create a Budget
Determine how much you need to borrow, what you’ll use it for, and how you’ll pay it back. Add a little extra for unexpected expenses.
2. Explore Options
Narrow down the list to those resources your business is eligible for. This will require some legwork, so get started long before you actually need the funds, especially since some loans (such as SBA loans) may take weeks or even months to process.
3. Gather Paperwork
Lenders typically want to see your financial forecasts and may want to review your business plan, profit and loss statements, tax returns, or other documents. You may need to show documentation that your business is a non-profit or a corporation. Other paperwork may be required, depending on the program. If you’re applying for a location-specific program, bring a utility bill showing the business’ address.
4: Get Pre-Approved
You can input a few details about your business to see what rates and terms you qualify for, without dinging your credit. BusinessLoans.com lets you view offers from multiple lenders with a single application.
Once you’ve reviewed your options, choose the lender and loan program that’s the best fit.
Starting and running a business in New York is something to be proud of, and you don't have to do it alone. Many resources can not only guide you in making smart business decisions but also in finding the best financing solution for your business. Take advantage of them.
