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Delancey Street is a premier small business lender, based out of NYC, that has helped broker 100's of millions in business loans. They are a pro, at making sure you get all of your financing needs satisfied.
- Over $200 million in funding secured
- Can handle low risk credit
- Handles all industries
- Handles high risk and low risk loans
New York City is a sprawling metropolis, with bright lights and endless opportunities at every street corner. It’s a place where dreams can come true and where ideas can turn into thriving businesses. However, amidst the buzz and excitement, it’s easy to forget that small businesses constitute an essential part of the city’s culture, and they deserve attention and support.
Small business loans are one way to revitalize local communities in New York City, helping small business owners achieve their dreams and stimulating economic growth. With the right resources and financial assistance, local entrepreneurs can add to the richness of the city while creating jobs, boosting income and supporting sustainable development.
What Are Small Business Loans?
Before diving into why small business loans are important, let’s first define what they are. In simple terms, small business loans are financial products designed specifically for small businesses. Unlike personal loans, which are used for individual needs, these types of loans are geared towards funding the growth and development of small companies.
Small business loans generally fall under two categories, secured and unsecured loans. A secured loan requires an asset such as real estate or equipment to be put up as collateral, whereas an unsecured loan is based solely on the creditworthiness of the borrower.
Why Small Business Loans Matter
Small businesses play a vital role in the local economy of New York City, where over 200,000 establishments open their doors each year. These businesses employ millions of people, generating significant tax revenue, foster innovation, and help maintain the unique identity of all five boroughs – Brooklyn, Queens, Manhattan, Staten Island and The Bronx.
However, starting and growing a small business is not without its challenges. From securing capital to managing costs to complying with regulations, small business owners must navigate a variety of obstacles. And unlike large corporations that have pools of funds available to them, small businesses often struggle with cash flow issues.
That is where small business loans come into play. With accessible and affordable loans, small businesses can obtain the financial resources they need to make investments in their growth and increase their capacities.
How Small Business Loans Stimulate Economic Growth
Small business loans are a powerful tool for economic development in communities across New York City. By providing entrepreneurs with the funds that they need, loans stimulate employment and income growth, as firms expand and create new positions.
According to data from the US Small Business Administration, 99% of all businesses in New York State are small businesses, employing over 4 million people. These firms also contribute significantly to the state’s overall GDP, accounting for over 90% of all business establishments.
Moreover, small business loans can promote entrepreneurialism and innovation, helping small businesses keep pace in today’s rapidly changing economy. With access to capital, small businesses can explore new markets, develop new products and services, and upgrade technologies, resulting in enhanced competitiveness and higher productivity.
Examples of Successful Small Business Loans
It is inspiring to see how small business loans have helped businesses in local communities throughout New York City. In this section, we look at some examples.
Sola Pasta Bar
Sola Pasta Bar, located in Lower Manhattan, is one of the numerous small businesses that secured a loan through the NYC Business Continuity Loan Fund following the onset of Covid-19 pandemic. The Fund aims to provide low-interest working capital loans to aid businesses in the retention of their employees and to cover expenses like rent and utilities during times of economic hardship.
Founders Massimo Lusardi and Simone Falco received $70,000 to cover expenses such as payroll, food orders and rent for Sola’s four locations, rooting the establishment and allowing them to stay afloat during tough economic times.
Brooklyn Roasting Company
Brooklyn Roasting Company is another case study of successful small business loans in New York City. In 2013, CEO Jim Munson began to look for investors to expand the company’s coffee roasting capacity. He found a partner in the Business Center for New Americans, an organization that facilitates microlending (making small loans) and other assistance to minority and startup businesses.
Thanks to the small business loan, Brooklyn Roasting Company was able to upgrade its roasting facility, acquire new equipment and hire additional workers, reaching annual sales of $12 million by 2019.
The Importance of Supporting Local Communities
In addition to the economic benefits of small business loans, there are also social and environmental benefits. Small businesses help to create vital close-knit communities in neighborhoods throughout New York City. They give back to those areas where their owners live and work, using local resources, employing neighbors and contributing to local causes.
Small businesses have also been at the forefront of efforts to promote sustainability and combat climate change throughout the city. By integrating green technologies into their business operations, these firms can reduce the overall carbon footprint of the metropolis, leading the way towards a greener future.
It is true that small business loans often require extensive paperwork and thorough research on behalf of the borrower. It can be challenging to qualify for a loan, meet applications requirements, and manage the repayment schedule while successfully growing a business. Additionally, there are some risks associated with taking out loans, including high-interest rates or unexpected changes in the economy that could affect repayment capacity.
However, it’s hard to ignore the fact that without access to loans, many of the best ideas will become just that – ideas without impact. Capital is essential for growth and success, turning entrepreneurial dreams into real-world results.
Small businesses are the backbone of New York City’s economy, and they require support and financing to compete effectively and drive sustainable growth. Small business loans provide a source of affordable capital that fuels the entrepreneurial spirit of local communities, promoting employment, innovation, and economic activity. By investing in small businesses, we invest in our communities, generating opportunities and driving progress for all New Yorkers.
1. NYC Gov https://www1.nyc.gov/nyc-resources/service/2143/small-business-services
2. US Small Business Administration. (2020). State Profiles. Retrieved from: https://www.sba.gov/sites/default/files/advocacy/NYC_20.pdf
Table 1 & 2:
Loan Type | Interest Rate | Loan Amount | Collateral
Secured | 2.25% | $350,000 | Equipment, real estate, other business assets
Unsecured | 6-12% |
According to a recent report by the Creative Independent, “Small businesses are critical sources not only of economic growth, but also of community character, environmental sustainability, and economic equality.” – source
“I was struggling to secure the resources to take my hospitality business to the next level when I came across a small business loan. It has been an absolute game-changer for me, allowing me to invest in new products, expand and boost my overall profit margins.” – Jane Smith, Brooklyn Entrepreneur
Small business loans have been crucial since the government began providing financial assistance to small businesses through the Small Business Administration (SBA) following World War II.
While loans can be risky, the SBA Authority claim that they are actively encouraging lending by guaranteeing at least 75% of their value against default. “This guarantee provides banks and lending institutions with greater confidence in providing loans to small business owners” – source