Program will target small businesses, non-profits and small landlords that did not receive federal COVID-19 assistance
HSBC Bank USA, N.A., part of HSBC Group, one of the world’s largest banking and financial services companies, announced it will provide $10 million to support the New York Forward Loan Fund (NYFLF), part of Governor Andrew M. Cuomo’s initiative to reinvigorate New York’s smallest businesses, landlords and critical non-profits. The NYFLF will provide affordable and flexible capital to participating Community Development Financial Institutions (CDFIs) so they can make rapid recovery loans in communities hard hit by the COVID-19 health and economic crisis.
“We’re grateful to HSBC for its support for small businesses and neighborhood nonprofits, and for its 25 years of partnership with LISC”
“HSBC Bank takes its role in supporting communities throughout New York State seriously,” said Morris L. Churchill, Jr., HSBC USA’s Head of Community Development & Sales Administration. “While small businesses are the engine of our economy, they unfortunately have suffered disproportionately throughout the pandemic. We are proud to participate in Governor Cuomo’s initiative to aid the state’s small businesses and non-profits that make up the very fabric of our communities. Supporting these groups during this unprecedented crisis was an easy decision to make.”
The NYFLF will initially provide $100 million in working capital loans that target the state’s smallest businesses and non-profits with 20 or fewer full-time equivalent (FTE) employees (90% of all small businesses), and small landlords with portfolios of 5 – 50 units who have seen a loss of rental income. For landlords, priority will be given to those with buildings in low and moderate income (LMI) communities or who manage affordable units. NYFLF will have a further goal of making 60% of its loans to minority- and/or women-owned businesses or minority- and/or women-led non-profits.
The NYFLF is a partnership led by the State of New York and five CDFIs with support from Local Initiatives Support Corporation (LISC), the Community Reinvestment Fund, USA, and Calvert Impact Capital. The participating CDFIs include ACCION East, Community Preservation Corporation, National Development Council, Pursuit and TruFund. The collaboration has an explicit focus on historically under-resourced communities, including organizations in LMI areas and those led by women and people of color.