The Bronx Economic Development Corporation (BXEDC) announced Oct. 17 the launch of new loan options aimed at supporting small and mid-sized businesses in the Bronx, offering local entrepreneurs access to crucial funding with interest rates as low as 5%.
The announcement took place at Tobalá, a Oaxacan-inspired restaurant in Riverdale, where Bronx Borough President Vanessa L. Gibson signed a check for $1.2 million in funding from the BXEDC, designated for eight local businesses that have already been approved for loans.
“By providing critical access to capital, BXEDC empowers our local mom-and-pop shops, like Tobalá, to thrive in a competitive market,” Gibson said. This initiative not only reduces financial burdens but also fosters growth and innovation in our borough.”
Bill Mercader, co-owner of Tobalá, received one of the new loans after struggling to manage payments on a high-interest loan. The new loan allowed him to refinance at a lower-interest rate, significantly reducing his monthly payments.
“Refinancing through BXEDC was a game-changer,” Mercader said. “We are now able to invest back into our business and focus on expanding our offerings. This kind of support is essential for small businesses like ours to grow and thrive in the Bronx and I can’t express my gratitude enough.”
The Bronx small business sector is thriving. From 2019 to 2021 the borough saw the number of new business formations increase by 66%, according to the BXEDC.
But owning a small business comes with financial challenges; 60% of small businesses in the New York City area reported difficulty keeping up with operating costs in 2023, according to the Fed’s Small Business Credit Survey. Over 40% reported dealing with uneven cash flow.
On top of those challenges, it can be difficult for small businesses to secure a loan with 60% of small businesses reporting that they struggled to find affordable loans, according to a Small Business Association Report.
Rob Walsh, president of the Bronx Economic Development Corporation, spoke about how capital for small businesses supports the local economy.
“At BXEDC, we understand how crucial access to affordable capital is for small businesses to not just survive, but to thrive,” said Walsh. “By offering these loan products, we’re giving Bronx entrepreneurs and local businesses the tools they need to invest in their growth, reduce financial strain, and stay competitive.”
There are three tiers to the new loans. One is a micro-loan for Bronx businesses with under 25 employees. Businesses can receive up to $50,000 at an interest rate of 5%. The second loan is the Bronx Commercial Development Loan which offers up to $500,000 in capital at 1 – 2% above the Wall Street Journal prime interest rate. The last loan is the Community Advantage Loan which targets businesses operating in the Bronx for at least three years. Businesses can receive up to $500,000 at 2 – 6% about the WSJ prime rate.
Brittney Moss, the Founder and CEO of Cupcake Me!, an online cupcake and dessert ordering business, secured one of the loans to upgrade its equipment, and help with payroll.
“These types of loans are extremely important, especially for solo entrepreneurs like myself, because as we work through our journeys of growing and scaling our businesses, we need critical access to capital which can be hard to secure,” said Moss.
To learn more about the loans visit the BXEDC website. Applicants will have to submit credit scores, tax returns and other financial information as part of the process.
