City Sets Aside $10M For Loans to ‘Emerging’ Real Estate Developers

(DNAINFO)  Leslie Albrecht | August 15, 2016 — The NYC Economic Development Corporation says the loans will help women and minority developers.

Fledgling real estate developers who are long on vision but short on capital can now get a leg up from a new $10 million city fund, the New York City Economic Development Corporation announced.

NYC EDC will dole out the money in low-interest loans to “emerging” developers looking to build small commercial or mixed-use projects.

The new loan fund is aimed at helping women and minority-owned developers in particular, because those firms “often face major hurdles in accessing affordable financing,” EDC officials said.

“The Emerging Developer Loan Fund will help level the playing field for New York City’s burgeoning development firms by addressing what has historically been a real barrier to entry for these types of firms — affordable financing,” NYCEDC president Maria Torres-Springer said.

Though the program is meant to support women and minority-owned firms, developers don’t have to fit into those categories to apply. NYCEDC defines an “emerging” developer as any firm that’s new to the business and has annual revenue under $10 million.

NYCEDC is partnering with Basis Management Group, a minority and woman-owned commercial real estate finance firm, to launch the fund. Basis will vet applicants to the fund and EDC will make the final decision on which projects are funded.

Source: City Sets Aside $10M For Loans to ‘Emerging’ Real Estate Developers