Small Business Lending in New York | New Jersey

As in other regions nationwide, New York City and New Jersey small business owners and nonprofit organizations experienced the tightening of credit as traditional lenders raised the bar for loan applicants. When businesses can’t secure financing, growth grinds to a halt—and local neighborhoods and communities lose jobs and services.

TruFund Financial fills this critical need for small businesses trying to access credit. The financing we offer allows businesses and nonprofit organizations to continue to invest and sometimes grow, even during the economic downturn. These entrepreneurs are opening new spaces and hiring workers, contributing to the revitalization of their local economies.

Our loans, which target low-income communities, range from $50,000 to $350,000. Since 2005, TruFund Financial has helped more than 2,000 small business owners receive loans totaling over $170 million. We have also helped create and retain more than 12,000 jobs and provided $97.1 million to underserved populations including women and minorities.   

Results in the community

TruFund provides affordable and responsible capital to small businesses and nonprofit organizations in New York City, Nassau and Suffolk counties, and the regions of Mid-Hudson, Western New York, and The Finger Lakes. We also provide funding resources to low-income areas in New Jersey. Our loan products help clients to sustain operations as well as invest in efficiency, resilience, and growth so they can improve incomes, create jobs, and build wealth in historically disadvantaged communities.

To help small businesses and nonprofits achieve stability and recover from the COVID-19 pandemic, TruFund has also provided federal, state, and city emergency loan programs.

Our loans have made a big difference for businesses such as Big Apple Performing Arts (BAPA), the umbrella organization for the New York City Gay Men’s Chorus, and other groups. BAPA had experienced several years of operating losses and was struggling to find a source of working capital during a challenging financial period. TruFund Financial Services stepped in and provided an affordable loan to BAPA which helped the group achieve financial stability.

“Banks and other conventional sources of capital were not willing to provide us with the loan that we needed, but TruFund Financial Services was there for us,” said David Edelman, Executive Director of BAPA. “Their knowledge of nonprofit arts organizations, their assistance in helping us develop a stabilization plan, and their below-market rate loan were a true blessing. TruFund Financial’s assistance gave us the breathing room we needed and helped position us for future growth.”

TruFund Financial Services, Inc. provides flexible financing with competitive rates directly to small businesses and nonprofit organizations in targeted neighborhoods across New York City and New Jersey.

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New York | New Jersey Loan Programs

Bridge to Success Program
The purpose of TruFund Financial Services Inc.’s Bridge to Success Program is to provide mobilization and short-term bridge loans to support New York State underserved populations including women and minorities that have a contract with a New York State agency or authority.
Terms and Conditions​​
  • Locations: Businesses that have contracts with New York State or New York City
  • Amount: Up to $250,000 or 30% of contract value
  • Loan Structure: Term loan/Non-Revolving Line of Credit
​Eligibility​​
  • Credit: Must have at least a 600 credit score (below 600 may be approved in certain circumstances)
  • Minimum Debt-Service Coverage Ratio: 1.10x
  • Repayment terms: Interest only; principal payment aligned with project term
  • Business requirements: Business must have been in operation for at least six months prior to March 2020;
  • Business requirements for nonprofits: Business must have been in operation for at least one year
Empire State Development Small Business Revolving Loan Fund
The New York City Economic Development Corporation (EDC) Contract Financing Loan Fund provides capital for businesses that have a contract with a New York City agency or city-funded entity such as a prime or subcontractor.
Terms and Conditions​​
  • Locations: Businesses located in the Bronx, Kings, New York, Queens, Richmond, Westchester, Nassau, Suffolk, Rockland, Orange, Putnam, Duchess
  • Amount: Up to $250,000
  • Loan Structure: Term loans, Lines of Credit
  • Terms: Up to five years
  • Interest Rate: 7-10%
  • Application Fee: $250
  • Closing Fee: 3.5%
Eligibility
  • Credit: Must have at least a 600 credit score (below 600 may be approved in certain circumstances)
  • Minimum Debt-Service Coverage Ratio: 1.10x
  • Repayment terms: Monthly P&I payments (may have interest-only period)
  • Business requirements: Business must have been in operation for at least one year
New York City Economic Development Corporation Contract Financing Loan Fund
The Empire State Development Small Business Revolving Loan Fund (ESD SBRLF) is a fund designed by Empire State Development of the State of New York to create economic activity by providing greater access to capital for main street everyday small businesses. The program is targeted underserved populations including women and minorities and main street businesses that have difficulty accessing regular credit markets.
Terms and Conditions​​
  • Locations: Business located New York City that have an agency contract – contract to be assigned to TruFund
  • Amount: Up to $500,000 or 30% of contract value
  • Loan Structure: Term loan/Non-Revolving Line of Credit
  • Interest Rate: 3%
  • Terms: Aligned with project term and payment schedule
  • Application Fee: None
  • Closing Fee: 1-2%
​Eligibility​​
  • Credit: Must have at least a 600 credit score (below 600 may be approved in certain circumstances)
  • Minimum Debt-Service Coverage Ratio: 1.10x
  • Repayment terms: Interest only; principal payment aligned with project term
  • Business requirements: Business must have been in operation for at least one year
New York City Economic Development Corporation New Markets Revolving Loan Fund
The New York City Economic Development Corporation (EDC) New Markets Revolving Loan Fund (NMRLF) provides funding for businesses and nonprofits located in low-to-moderate income communities in New York City.
Terms and Conditions​​
  • Locations: Business and nonprofits located in low-to-moderate income communities in New York City
  • Amount: Up to $200,000 – loans up to $350,000 may be approved on a case-by-case basis
  • Loan Structure: Term loan/Non-Revolving Line of Credit
  • Interest Rate: 7-9%
  • Terms: Up to five years
  • Application Fee: $250
  • Closing Fee: 3.5%
​Eligibility​​
  • Credit: Must have at least a 600 credit score (below 600 may be approved in certain circumstances)
  • Minimum Debt-Service Coverage Ratio: 1.10x
  • Collateral requirement: Must have a historical revenue of $200,000 or more
  • Repayment terms: Monthly P&I payments (may have interest-only period)
  • Business requirements: Business must have been in operation for at least one year
Finger Lakes & Western New York Minority- and Women-Owned Business Revolving Loan Fund Trust
The Finger Lakes & Western New York Minority- and Women-Owned Business Revolving Loan Fund Trust (MWRLFT) was created to provide access to capital for minority- and women-owned small businesses in the Finger Lakes and Western New York Regions.
Terms and Conditions​​
  • Locations: Business must be located in the counties of Genesee, Livingston, Monroe, Ontario, Orleans, Seneca, Wayne, Wyoming, Yates, Allegany, Cattaraugus, Chautauqua, Erie, Niagara
  • Amount: Working capital loans of up to $35,000 and fixed asset loans of up to $50,000; participation loans are possible and the total loan can’t be greater than TruFund’s cap
  • Loan Structure: Term Loan
  • Interest Rate: 8-12 %
  • Terms: Working capital loans up to 5 years; fixed asset loans up to useful life of asset
  • Application Fee: Application fee is $100 for loan applications up to $9,999 and $200 for loan applications of $10,000 to $50,000
  • Closing Fee: 2-3%
​Eligibility​​
  • Credit: Must have at least a 600 credit score (below 600 may be approved in certain circumstances)
  • Debt-Service Coverage Ratio: 1.10x
  • Repayment terms: Monthly P&I payments (may have interest-only period)

Business can either be a start-up or existing business and does not need to be a certified Minority- or Women-Owned Business Enterprise (MWBE).

New York Forward Loan Fund
The New York Forward Loan Fund was launched by Governor Cuomo in May 2020 to support small businesses, nonprofits, and small landlords as they reopen after the COVID-19 outbreak and NYS on PAUSE. This economic recovery loan program is available to small businesses in New York State with 20 or fewer employees.
Terms and Conditions​​
  • Locations: Businesses and nonprofits located in New York State
  • Amount for Small Businesses: Up to $100,000 or up to 100% of average monthly revenues for any three-month period in 2019 or first quarter of 2020
  • Amount for nonprofits: Up to $100,000 or up to 100% of average monthly expenses for any three months in 2019 or first quarter 2020
  • Loan Structure: Term loan with interest-only period
  • Terms: 60 months
  • Interest Rate: 3% (2% for nonprofits)
  • Application Fee: None
  • Closing Fee: None
​Eligibility​​
  • Credit: Credit: Must have at least a 600 FICO credit score (below 600 may be approved in certain circumstances)
  • Debt-Service Coverage Ratio: 1.20x
  • Collateral requirement: Must have gross revenues of less than $3 million per year
  • Repayment terms: First 12 months – monthly interest-only payments; Months 13-60 – monthly P&I payments
  • Business requirements
    • Business can’t have received a Paycheck Protection Program (PPP) loan of greater than $50 million or an EIDL loan (except for EIDL Advance Grant of up to $10 million for small residential landlords)
    • Business must have suffered a direct economic hardship due to COVID-19 social distancing policies and stay-at-home orders that have materially affected operation
    • Business must have been in operation for at least one year
    • Business must have 20 or fewer employees
Metropolitan Economic Revitalization Fund
The Metropolitan Economic Revitalization Fund (MERF), supported by the Empire State Development of New York, provides loans to businesses or governments investing in projects that retain or create a significant numbers of private-sector jobs in distressed communities within the area of the Port Authority of New York and New Jersey, including parts of Westchester, Nassau, and Rockland Counties.
Terms and Conditions​​
  • Locations: Businesses and nonprofits located in Westchester, Nassau, and Rockland Counties (Yonkers, Mount Vernon, New Rochelle, distressed track south of the Mario Cuomo Bridge in Westchester County, Hempstead, and Freeport)
  • Amount: $25,000 – $150,000 for fixed asset purchases, working capital needs and debt refinance
  • Loan Structure: Term loan
  • Terms: 6 – 60 months
  • Interest Rate: 8%
  • Application Fee: $250
  • Closing Fee: 3.50%
​Eligibility​​
  • Credit: Must have at least a 600 credit score (below 600 may be approved in certain circumstances)
  • Debt-Service Coverage Ratio: 1.10x
  • Repayment terms: Monthly P&I payments (may have interest-only period)

For more information about our New York/New Jersey loan programs and funding resources, please contact our local office.