Upper Manhattan Empowerment Zone Extends Hybrid Microloan Program Until End of 2023
Upper Manhattan Empowerment Zone Extends Hybrid
Microloan Program Until End of 2023
Initial Deployment of $1.1 Million in Loans to 23 Businesses and Non-Profits
$900,000 In Funds Remaining to Qualifying Applicants
New York, NY, September 26, 2023 – The Upper Manhattan Empowerment Zone (UMEZ), founded in 1995 as a non-profit committed to sustaining the economic revitalization of communities in upper Manhattan in New York City, today announced it is extending its unique Hybrid Microloan Program through the end of 2023. Since the program’s inception in 2021, the program has loaned approximately $1.1 million to 23 businesses and non-profits in six neighborhoods across Upper Manhattan. Given the success of the program, UMEZ is committed to deploy an additional $900,000 over the remaining months of 2023 to qualifying applicants to reach its $2 million target.
Over nearly 30 years, UMEZ has provided approximately $260 million of investments in mixed use real estate projects, commercial businesses and small business enterprises: tax-exempt bonds for real estate projects; and grants focused on arts and culture and workforce development. UMEZ investments have leveraged over $1.5 billion of private capital invested in Upper Manhattan, creating nearly 12,000 direct jobs.
UMEZ Hybrid Microloan Program
Developed during the pandemic and the immediate aftermath when businesses and cultural organizations were struggling to make payroll and keep the doors open, the UMEZ Hybrid Microloan Program’s mandate is to help Upper Manhattan small businesses and nonprofits -- whose operations were disrupted by COVID-19 – with microloans of up to $50,000 payable over a four-year term. Of note, for participants meeting certain requirements including three years of on time payments, UMEZ will convert in the final year of loan 25% of the original loan amount into a grant.
Blair Duncan, President and Chief Executive Officer of UMEZ, stated, “For nearly 30 years, we have fueled and sustained economic growth and revitalization, supporting Upper Manhattan with affordable loans and direct grants. Our Hybrid Microloan Program is a perfect example of our commitment to this mission. We are gratified by the success we have had to date with this innovative hybrid microloan program. We recognized, during the pandemic, the needs of our communities and developed this innovative financing tool to provide extra financial help to small businesses and non-profit organizations which are pillars of the communities they serve.”
The Hybrid Microloan can be used for a variety of eligible business expenses including, but not limited to working capital, inventory, marketing, utilities, payroll among other things. Eligible applicants must have a physical storefront or office in East Harlem, Central Harlem, West Harlem, Washington Heights and Inwood, and all proceeds must be used to support only Upper Manhattan operations with 20 or fewer full-time employees. The maximum loan amount is $50,000 with a 48-month term at a 3% interest rate.
Examples of local community business and cultural organizations receiving Hybrid Microloans include Baked Craving, Julio Valdez Studio, Oliver’s Dog & Cat Clinic of East Harlem, Fruces Juice Bar, Dutch Baby Bakery, Harlem Chi Community Acupuncture and LoLo’s Seafood Shack.
“We are excited to be in a position to make the remaining $900,000 available to small business owners and nonprofits in the communities we serve,” stated Mr. Duncan. “With a 3% interest coupon in a rising interest rate environment, coupled with the prospect of a 25% debt forgiveness of the total loan amount, our hybrid microloan product is an extremely attractive solution. This program has been a great success and is a clear example of how UMEZ bridges the capital access gap for small businesses and nonprofits.”
Microloan funding will be available on a rolling basis as long as funds permit or until December 31, 2023, whichever comes first. Applicants can submit requests for funding at any time, subject to availability of funds. UMEZ will evaluate each application according to the criteria in this guidebook.
The online application is available at: http://www.umez.org/hybrid-microloan-program by clicking “How to Apply.”
UMEZ Boilerplate:
Upper Manhattan Empowerment Zone is a Community Development Financial Institution (CDFI), with a mission to sustain the economic revitalization of all communities in Upper Manhattan through job creation, corporate alliances, strategic investments and small business assistance. UMEZ currently facilitates economic development in Central, West, and East Harlem; Washington Heights and Inwood neighborhoods.
Contact: Elliot Sloane
ThroughCo Communications
917-291-0833