New York to Allocate $ 5 Million to Support Women Entrepreneurs

Access to capital is a problem that 70% of New York City women entrepreneurs face. Program WE Fund Credit will allow them to get a loan for business development on favorable terms, reports New York Department of Small Business.

New York City Department of Small Business (SBS), New York City Economic Development Corporation, Goldman Sachs 10,000 Small Businesses, Squarespace and Fundation have announced a public-private partnership. Their goal is to provide approximately $ 5 million in loans to New York City women entrepreneurs.

The new program is called WE Fund Credit. As part of it, women from New York who manage their own business will be able to get a loan of up to $ 100 thousand at favorable interest rates.

Limited credit history companies will also be able to take this opportunity to improve their credit ratings.

Who will ensure the work of the program

The work of this program will provide the reserve fund, which is more than $ 1 million.

Financial support is provided by Squarespace, Goldman Sachs 10,000 Small Business, and the New York Economic Development Corporation.

Credit solution provider Fundation will provide a platform through which women entrepreneurs can access and manage credit lines.

Goldman Sachs will provide a $ 300 thousand grant to support technical assistance and reach WE Fund Credit.

Why is this program needed?

Today, New York City women entrepreneurs face gender-based funding barriers that prevent them from opening and developing their own businesses.

“With WE Fund Credit, we are breaking down these barriers by offering affordable lending options to women entrepreneurs in five boroughs,” said Gregg Bishop, Commissioner for the New York City Department of Small Business.

She emphasized that creating a business “supports the local economy and cheers up our communities.”

“Many women entrepreneurs today find it difficult to access finance,” confirmed Margaret Anadu, Managing Director and Head of City Investment Group Goldman Sachs. “Even though small businesses are at the center of community vitality, economic growth and quality jobs ".

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The new program will allow women entrepreneurs from New York to access the capital they need to succeed.

Anna Stallings, Squarespace's senior marketing manager, added that “no one should be denied the possibility of continued business success because of their gender.”

“Our mission at Squarespace is to empower anyone with a creative idea to be successful. WE Fund Credit is leveling the playing field for women entrepreneurs to create businesses that shape our local communities, provide jobs and contribute to our hometown economy, ”Stallings said.

How it will work

WE Fund Credit will allow women entrepreneurs from New York to extend credit lines with an annual interest rate of approximately 12%, including fees.

In addition to providing credit support through the loan loss reserve, city officials will assist women entrepreneurs in applying for a loan.

Applicants who expect to receive a loan must be in business for at least one year, have an annual income of at least $ 50 thousand and FICO points from 620.

To learn more about this program and apply, we recommend that you visit the site we.nyc.

What will change with this program

According to the report of the mayor's office “Women Entrepreneurs in New York”, 70% of women entrepreneurs call access to capital one of the main problems in opening and developing their companies.

At the same time, many of them rely on personal credit cards and lenders who lend them money up to salary at interest in the amount of more than 30%.

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“Having good credit is key to running a successful business, and many women who are running or planning to start a business may find it difficult to find affordable lines of credit,” said Brooklyn District President Eric Adams.

According to him, thanks to the WE Fund program, the city will be able to “help these entrepreneurs with the financial support they need and create a thriving small business culture in Brooklyn and beyond.”

According to Councilor Farah Luis, obtaining a loan is a problem that affects all socio-economic aspects, but most of all - women and minorities.

“Through WE NYC, we are removing barriers to level the playing field for small business owners,” she said. "The loan we are financing will serve as a lifeline for thousands of women entrepreneurs who are driving the economic growth of communities across New York."

About WE NYC

WE NYCLaunched by the New York Department of Small Business Services in 2015, it offers specialized research programs for women entrepreneurs to make it easier for them to access the resources, education, and society they need to prosper.

WE NYC services are free and open to all women in five districts of the city. Since its launch, the program has served more than 8500 women entrepreneurs in New York.

About Goldman Sachs 10,000 Small Business

Goldman Sachs 10,000 Small Business Helps entrepreneurs create jobs and economic opportunities by providing greater access to education, capital and business support services.

Today, the organization serves more than 8600 small businesses throughout the United States.

The program covered businesses from all 50 states, Puerto Rico and Washington, DC, and led to an immediate and sustainable business growth for graduates of the program.

About Squarespace

Squarespace expands the possibilities of millions of dreamers, creators and performers, providing them with the tools necessary to bring their creative ideas to life.

On the Squarespace platform, customers can get a domain, create their own website, sell online and promote their brand.

The team of the company founded in 2003 year brings together more than 1000 people. Its headquarters is located in the center of New York, offices are also represented in Dublin and Portland.

About Fundation Group LLC

Fundation group LLC Is a lending solution provider focused on the small business market at the national level. The Foundation is a leader in providing technology and application processing services to support over 25 regional and community banks.

The Fund’s decisions allow its financial services customers to develop digital lending capabilities, provide excellent customer service, increase the cost-effectiveness of their small business lending program and maximize the number of customers.

The Fund's services range from simple partnerships to individual and comprehensive lending programs. The company also collaborates with a wide range of organizations that serve the small business market in various fields to provide loan products to the business community across the country.

About New York's Department of Small Business

SBS It helps to unleash economic potential and create economic security for all New Yorkers by giving residents of the city access to good jobs, building stronger businesses and vibrant neighborhoods in five districts.