Though many small businesses are still impacted by pandemic-era problems, COVID-19 related government financial aid programs have largely ended. This perfect storm of scarce opportunities for funding and a difficult business environment has pushed many small businesses into the shady world of merchant cash advances.
The Wall Street Journal reported that “small businesses struggling to find funding have turned to alternative options such as merchant cash advances in recent years.” Merchant cash advances charge exorbitant interest rates and fees that weigh businesses down rather than help them expand. These rates can even rise to the triple digits and have caused over 100 bankruptcies in 2023.
The need for affordable funding for small businesses right now is why the Bronx Economic Development Corporation (BXEDC) and the Business Initiative Corporation of New York (BICNY) are teaming up to bring the U.S. Small Business Administration (SBA) Community Advantage loan program to the South Bronx. The Community Advantage loan is a flexible program that can be used for loans for equipment, payroll, renovations, inventory, debt refinancing and more. With a maximum loan size of $350,000, we are looking to help Bronx small business owners that want to grow and take their business to the next level.
We have already helped three small business owners, all in the South Bronx, with affordable funding to grow their business. The first is an apparel producer who received a loan for equipment, allowing him to offer a new line of products. The second is an auto-repair shop who received working capital that allowed him to keep on his employees full time through his slow months. And the third is a laundromat owner who is reducing his monthly equipment loan payments by half by refinancing with a Community Advantage loan.
As the only federally certified commercial lender headquartered in the Bronx, BICNY understands the needs of Bronx businesses better than any other lender. Whatever your business needs, BICNY is here to provide affordable funding for your business. With over $10 million available for small business loans, contact us today.
For more information, visit bicofny.org or email loans@bicofny.org.
Andrew Berger is the Commercial Loan Manager in charge of lending and development policy at the Business Initiative Corporation of New York. A lifelong New Yorker, Andrew got his master’s in political science from The Colin Powell School for Civic and Global Leadership at the City College of New York.
