Small Business Loans

At a Glance 

The Upper Manhattan Empowerment Zone Development Corporation (UMEZ) offers business loans to qualified Upper Manhattan businesses to help them meet their working capital needs. We offer Microloans up to $50,000, Lines of Credit between $50,000 and $100,000, and Term Loans between $50,000 and $250,000. The Microloan aims to support small businesses stabilize after the effects of COVID-19. The Microloan can be senior or subordinate financing. The Term Loan typically is senior financing, depending on the other sources of capital for the project, and is set at an affordable rate, with flexible terms based on the cash flows, job generation, and level of collateral for the project. The Line of Credit provides short-term financing to meet working capital needs. The Line of Credit can be senior or subordinate financing.

LINE OF CREDIT

Loan size: $50,000 to $100,000 (minimum business revenue of 10x request)

Pricing: Competitive with market rates

Loan term: Revolving with 12 Month Annual Review/Renewal (if qualified)

Uses: Working capital

Key Requirements:

• Existing business with at least 2 years in operations (no home-based businesses)

• Personal guaranty / collateral

• Positive operating income

• No tax arrearages

• Must be located in Upper Manhattan

• Submission of Personal Finance Statement

The process begins informally with a discussion with a BRISC lending officer. After the project is deemed appropriate, an application and any pertinent project-related information that may be requested are submitted to begin the underwriting process. The underwriting process ends with final loan approval by the BRISC Loan Committee. The entire process typically requires two to three months to complete.

The review and approval process is summarized below:

• Discussion with a UMEZ loan officer

• Application submission and due diligence

• BRISC Loan Committee approval

• Closing process

Required Documents to apply for Microloan

1. Loan Application Form.

2. Most recent 3-months bank statements.

3. Most recent 3-months bank statements for each guarantor.

4. Interim Financial Statement for current year.

5. Cancelled checks for most recent 3-months of rent payments for the commercial lease.

6. Copies of signed corporate federal and New York State tax returns for the two most recent years. For Non-Profits, the IRS Form 990, 990EZ, or 990N

7. Copies of signed federal and state tax returns for the two most recent years for each guarantor.

8. NYS-45-ATT Wage Reporting Form for the most recent quarter.

9. Schedule of Ownership: Name(s), address, social security number, phone number, email, percentage of ownership, and photo ID for anyone with 20% or more ownership.

10. Evidence of legal formation of entity (Articles of Incorporations and/or By laws)

11. Copy of current commercial lease.

12. Non-Profits must also include the following: Board approved operation budget for the current fiscal year.

Required Documents to apply for Term Loan or Line of Credit

• Completed Loan Application with check for $125.00 payable to BRISC

• Copy of Certificate of Incorporation

• Copy of Lease

• Executive Summary (Which should be accompanied by or include the following)

  • Detailed Description of the Project

  • Five Years of Financial Projection for the Business

• Last 3 Yrs. Business Tax Returns for All Businesses owned by Principal

• Last 3 Yrs. Personal Tax Returns of the Principal(s)

• Copy of Business Bank statements- Last 12 months

• Completed Personal Financial Statement form (dated within 30 days of application)

Additional Documents Required for:

Loans for Expansion and/or Renovations

1. Identify renovations needed and corresponding costs

2. Submission of at least three (3) Estimates from contractors

3. Letter of Authorization from the landlord for the renovations

Loans for Machinery and/or Equipment

1. Vendor Estimates or purchase order

2. Description of machinery and/or equipment including vendor and serial numbers

SUGAR HILL CREAMERY

Sugar Hill Creamery received a small business loan in 2017 for the build-out of an ice cream parlor to provide a rotating selection of small batch ice cream and other sweet confections. Nick Larsen, the owner of Sugar Hill Creamery, and his wife saw a need in Harlem for good ice cream. Before Sugar Hill Creamery, there hadn't been a proper ice cream shop in Harlem since Thomforde's closed in 1983. Sugar Hill Creamery strives to be a neighborhood destination for those looking for a quality scoop.

FLAMEKEEPERS HAT CLUB

FlameKeepers Hat Club received a small business loan in 2016 after Marc Williamson, owner of Flamekeepers, was identified and sent to UMEZ from Harlem Business Alliance. FlameKeepers seeks to become one of New York City’s leading headwear retailers, whose mission is to offer a luxury retail experience, unparalleled customers service, along with high quality yet affordable headwear.

MELBA'S RESTAURANT

In 2005, Melba Wilson opened Melba’s at the intersection of Frederick Douglass Boulevard and 114th Street, one of the premier comfort food destinations in New York City. With a BRISC loan, in 2015, Wilson was able to finance a portion of the restaurant’s expansion, which will augment its dining and bar seating capacity by almost 50%.

LOCKSMITH WINE AND BURGER BAR

Maximiliano Napa obtained a small business loan from UMEZ for the expansion of Locksmith Wine Bar in Washington Heights. The expansion will combine the restaurant’s existing space with an additional 900 square feet of space immediately adjacent to it. BRISC loan funding will contribute to increasing the number of seats in the restaurant from 25 seats in a 600 square feet space to 60 seats occupying 1,500 square feet.

CAFÉ BUUNNI

Sarina Prabasi and Elias Gurmu received a small business loan for the construction of the third location of their coffee shop, Café Buunni, within the George Washington Bridge Bus Terminal. After the success of their other two locations, another in Washington Heights and one in the Bronx, creating an additional location in GWB Bus Terminal was a great fit to cater to locals and tourists. UMEZ’s small business loan will contribute to contractor fees, equipment expenses, and operating costs.

SAVANN

Galip Ozbek obtained a term loan in 2013 from UMEZ enabling him to relocate to Harlem and build-out Savann’s current location. He repaid the loan and subsequently applied for a Line of Credit. In 2019, he received a revolving Line of Credit to be used for working capital.