Small businesses just starting out in New York are now eligible for up to $100,000 in affordable rate loans.
The state has launched the Main Street Capital Program to assist new businesses in getting much-needed funding. A partnership between Empire State Development and community lender Pursuit, the $10 million fund is designed to be more accessible and flexible for start-ups and early-stage businesses.
The loans will be up to six years with a fixed interest rate of 9.9%. Borrowers will make no principal payments during the first 12 months of the loan, instead paying less than interest only.
To be eligible, businesses must be owned by a New York State resident, operate in New York, employ 100 or fewer employees, maintain an annual revenue of under $5 million, be in operation for fewer than four years, and provide a personal guarantee from owners with more than a 20% ownership stake.
Loans may be used for startup costs, working capital, franchise fees, equipment and machinery, and inventory fees.
More information on the program including how to apply can be found at esd.ny.gov.
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