The Department of Small Businesses will soon open applications for a new $3.5 million loan fund that will help small contractors find short-term financing for big construction jobs.
The fund is a “game changer” for up-and-coming contractors that are short on credit in a post-Hurricane Sandy credit crunch, according to Crain’s.
$2.8 million is coming from Goldman Sachs’ 10,000 Small Businesses Program, and Surdna Foundation is handing over an additional $700,000 for the fund.
BOC Capital Corporation will manage the fund for the next three years, Crain’s said.
The one-year, low-interest loans, amounting $20,000 to $150,000 each, will be awarded to small firms that have won bids for New York City-based contracts. Firms applying must have two or more employees, be at least two years old, have a clear plan for growth and have authorization to work in the city. They must also have annual revenues between $100,000 and $7 million. [Crain’s] — Angela Hunt