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NYC banks add millions to MWBE loan fund
Published on 02/26/2018

Mayor Bill de Blasio of New York City recently announced that the three banks authorized to hold City deposits will give a combined $40 million to the Contract Financing Loan Fund (CFLF) and the Emerging Developer Loan Fund (EDLF), two loan programs that the City runs for the benefit of minority- and women-owned businesses (MWBEs).

The two funds already between them have been given $20 million in direct City investment, meaning that after the donation of funds from the three banks - Amalgamated, Bank of America, and TD Bank - MWBEs will have access to $60 million in total revolving loan funding from the CFLF and the EDLF.

The CFLF allows MWBEs, if they are not eligible for other funding, to borrow up to $500,000 from the City to use towards a contract with a City agency or the New York City Economic Development Corporation (NYCEDC), at a maximum 3 percent interest rate.

The EDLF, run through the NYCEDC, primarily offers capital to developers working on real estate development projects (such as mixed-income housing, mixed-use, industrial and commercial projects), and was started after the NYCEDC found that there was a financing gap for emerging developers attempting to work on projects below $30 million.

In a statement, Mayor de Blasio said that the "new commitments will help us continue working to overcome the historic barriers that hold back small businesses, especially those run by women and people of color," and that the investments would "[help] us build a more equitable and fair city."

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