NYC Promotes its Own Online Business Loan Marketplace

There was so much demand for NYC’s experimental Small Business Opportunity Fund last year that it had to stop accepting applications after just 3 weeks. The program, however, ultimately enabled 1,046 businesses to collectively borrow $85 million at a low interest rate of only 4%. While the Mayor’s office has declared it a major success it is now encouraging anyone else seeking funds to use its relatively new online business loan marketplace called NYC Funds Finder.

Facilitated by Next Street, a b2b platform whose co-CEO Michael Roth is a former interim chief of the SBA, NYC Funds Finder promises to connect business owners with capital products that are “non-predatory and have been screened to ensure fair and transparent pricing and terms.”

An example of some of the lenders on the platform include Lendistry, Accompany Capital, and SmartBiz. APRs tend to range roughly from 7% to 19%.

“NYC Funds Finder serves New York City’s small businesses by aggregating funding options from many of [the NYC Department of] Small Business Services (SBS) and Next Street’s trusted partners,” said an official announcement that went out in September. “Additionally, the platform makes it easy for the business owner to connect with a free advisor if they need help navigating or applying for capital. This partnership with trusted SBS advisors is key for small businesses to access the best financing options for their business.”

Coincidentally, the SBA has also been pushing its own online business loan marketplace as of late. The SBA’s Lender Match tool has 1,000 SBA lenders and 257 community based lenders on its platform already.