NYC Touts its Revenue-Based Loan Program

“Traditional loans don’t work for all businesses, especially those businesses whose revenues change with the seasons,” said Kenny Minaya, Commissioner of the New York City Department of Small Business Services. “That’s why the NYC Future Fund offers loans starting at $25,000 with lower interest rates and flexible repayment options that adjust with your revenue.”

Since Minaya and New York City Mayor Zohran Mamdani announced the city’s new revenue-based financing initiative in March, Minaya has touted it as one of New York’s signature small business lifelines.

In a conference hosted by the Dominican American Chamber of Commerce this past July, Minaya told the audience that the Mayor and he had launched the revenue-based loan program themselves. “This is a program for small businesses whose revenues fluctuate throughout the year,” he said.

On the official website that explains the benefits, it says “Unlike a traditional term loan, a revenue-based loan enables better cash flow management as principal repayments are based on a percentage of monthly revenue instead of fixed payments. When revenue is higher, payments increase, when revenue is lower, payments decrease.”

Marketing for the program does not disclose an APR, but instead refers to two separate costs, an “annual interest rate” and a “3% origination fee.”