Superstorm Sandy Emergency Loan Funds



Shortly after Hurricane Sandy had spent its fury, NYBDC, NYBA, the City of New York, the State of New York and Goldman Sachs set to work to develop and fund small business emergency loan programs to serve the immediate needs of impacted small businesses.  Ultimately, 33 NYBA members (including NYBDC) committed $17.7 million to capitalize a $15 million loan fund in NYC along with The New York City Economic Development Corporation and Goldman Sachs and a $10 million dollar loan fund for NYS (businesses located outside NYC) along with the State of New York.  The participation by NYC and NYS provide a buffer against loss.  In total, $14.9 million was drawn from the NYBA member commitments.

The first Sandy Loan was funded on November 21, 2012 and the last on August 12, 2013. In total, $18.29 million was disbursed in loans to 797 small businesses. On October 1, 2013, NYBDC was recognized on behalf of Mayor Bloomberg for continuous commitment to NYC's small businesses. Read more here >
 
A total of 1,551 loan applications were received and determined by NYBDC as follows – 
 
797 (51.4%) – Approved or Approved with Conditions (all were ultimately funded)
601 (38.7%) – Declined 
74  (4.8%) –     Ineligible – Application did not meet basic eligibility criteria 
58  (3.7%) –     Withdrawn – Application was withdrawn by the Applicant
21 (1.4%) –      Cancelled – Application cancelled by NYBDC (Lack of Response)
 
Additionally, 514 small businesses located in NYC received a grant from funds made available by the Mayor’s Fund to Advance the City of New York and the Partnership for NYC as grants totaling $4,943,944.34 were disbursed.  NYBDC administered both the grant and loan funds. 
 
Our work here reflected very favorably on NYBA and our bank partners in many ways…
 
  • NYBA led the way to solicit participation by its member banks and recognized the need to get funds to small businesses as soon as possible;
  • NYBDC (representing the participating NYBA members) negotiated agreements with all of the participating banks (as well as NYC, NYS and Goldman Sachs), structured a loan program, application process and delivery system that worked to put money in the hands of small businesses expeditiously and appropriately;
  • The NYBDC partnership (banks working collaboratively to support small businesses) worked and worked well.
 
Congratulations and thanks to all of the bank participants...our work truly made an important and timely difference for so many.
 
Loan payments have begun and our quarterly payments to participants and reconciliations will begin next quarter.
 
Any questions should be directed to Pat MacKrell at NYBDC. 
 

 

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