Bronx EDC Launches $10-Milliion Microloan Program for Small Businesses

NEW YORK—Bronx Borough President Vanessa L. Gibson and the Bronx Economic Development Corporation announced a new $10-million microloan program for small businesses on May 10 at the Villa Barone Manor at the Annual Bronx Week Bankers Breakfast.

The new loan program builds on the Borough President and BXEDC’s commitment to support the growing small business sector in the Bronx and follows a $10-million loan program announced last fall.

“The Bronx is open for business! I am proud to support BXEDC’s new microloan initiative that will provide critical support for our Bronx businesses. These microloans will give our small business owners the capital they need to make improvements to their businesses and remain in our communities. I want to thank our BXEDC team and everyone else who was involved in pushing this important initiative forward and for their partnership in ensuring our business owners receive the support that they need to thrive in our borough,” said Bronx Borough President Vanessa L. Gibson.

The microloan program provides capital access for the common costs small businesses incur but cannot pay for upfront, such as small equipment, like refrigerators, and renovations, and working capital for inventory. The maximum size of a microloan is $50,000. The interest rate is currently 5% and the term is variable depending on the size of the loan.

“Small businesses are the lifelines of communities. They help residents build wealth and create thriving main streets,” said Rob Walsh, President of BXEDC and a former commissioner of the Department of Small Business Services. “That’s why, under the leadership of Bronx Borough President Gibson, we are looking for every opportunity to support our thriving small business community and help it succeed.”

The microloan program follows on the $10-million New York Empowerment Zone Corporation Loan Program launched in the fall of 2023. The Empowerment Zone Loan program supports larger capital needs, up to $350,000.

BXEDC, in partnership with The Business Initiative Corporation of New York, recently closed on the first three loans for this program, totaling $175,000. Loan recipients include Established Screens Incorporated, which received a $75,000 loan for the purchase of an embroidery machine to expand services offered; Vent Bike Tech, which received a $20,000 loan to cover payroll expenses; and JNJ Laundry, which received an $80,000 loan to refinance equipment.

The Empowerment Zone Corporation Loan Program was established in August of 2023 to spur economic development in underserved communities. It focuses on supporting small businesses primarily within the Empowerment Zone district, which includes the neighborhoods of Hunts Point, Port Morris, and the Yankee Stadium area, or those considered Low-to-Moderate Income (LMI).