Everything You Need To Know About Small Business Loans in New York
Does your business need some funds to keep afloat? Consider taking out a small business loan. Whether you need money to pay for rent or utilities or funding to invest in the latest equipment, a small business loan can help sort out all your financial needs. But how do they work, and can you qualify? We can give you all the guidance you need.
This article will explain everything you need to know about the best small business loans in New York. If you want to accelerate the loan application process, subscribe to DoNotPay and get a customized loan request letter in minutes.
New York is one of the busiest business locations in the United States. Small businesses, especially startups, are rapidly growing, boosting the economy even further. To help these companies thrive, the government and other financial institutions offer small business loans.
Although small businesses are defined as ones with fewer than 500 employees, New York state defines small businesses as those with 100 or fewer employees. There are several types of small business loans that entrepreneurs can apply for, including:
|Type of Small Business Loan||Details|
|Economic injury disaster loans||Catered to help small businesses that have suffered economically due to the pandemic|
|Term loans||Ideal as a long-term loans for businesses with a strong credit score|
|SBA loans||Suitable for financing long-term investments with favorable terms of repayment, and they have several programs, such as:
|Business lines of credit||Ideal if you do not need a lump sum and need to borrow a small amount that you can repay with interest|
|Microloans||Suitable for short-term or urgent finances, such as rent, utilities, or payroll|
|Equipment loans||Used to purchase, repair, or upgrade machinery and equipment necessary for business operations|
Some of the popular sources for the best institutions to take out a small business loan in New York City are:
- NYC Capital Access Loan Guaranty Program—The program is run by NYC Economic Development Corporation and offers up to $250,000
- TD Bank—Famous for providing Small Business Administration (SBA) loans, TD Bank is one of the most popular sources for funding small businesses. You need to have a credit score of 680 and have at least $180,000 in annual revenue to take out an SBA loan
- WE Fund Credit—You can qualify for a loan at WE Fund Credit if you identify as female, have been in business for at least a year, and have earned $50,000 in annual revenue
- The Brooklyn Fund—This caters to Brooklyn-based companies owned by U.S. citizens or permanent residents. The loan amount can be between $25,000 and $350,000 with an interest rate of six to eight percent. You can fill out and submit your loan application at the Brooklyn Chamber of Commerce’s Business Solution Center
- Excelsior Growth Fund—This fund lends money to small businesses in New York, New Jersey, and Pennsylvania. They are famous for the EGF Smartloan, which has a limit of $100,000 and can be accessed within a week of applying
- Business Center for New Americans (BCNA)—If you want a microloan, you can submit a loan application at BCNA for an amount ranging from $500 to $50,000. This opportunity is open to all businesses run by immigrants, refugees, women, and minorities in Manhattan, Brooklyn, and the Bronx
You must meet specific requirements to apply for a loan in New York. Traditional lenders, such as banks, will require extensive documentation, such as:
- Business plan
- Credit scores
- Financial statements—income statement, balance sheet, and cash flow statements—to show costs and budget
- Business and income tax returns
- Articles of incorporation
- Business licenses
- Commercial lease(s)
- Documents of ownership and affiliations
In some cases, especially where larger amounts are involved, you might have to present collateral that the lender can confiscate if you do not repay the loan. It can include tangible assets, such as:
- Real estate
Since the loan application process can be tedious and time-consuming, we have created two products to help you:
- Find Online Business Loan Lender—Find the top lender suggestions based on your requirements
- Business Loan Request Letter—Prepare a professional request letter and maximize your chances of loan approval
Follow these instructions to prepare a loan request letter:
- Sign up for DoNotPay
- Navigate to the Business Loan Request Letter tool
- Answer a few questions from our chatbot
- Upload the required financial paperwork
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