For 25 years Hawthorne-based Community Capital New York has been an alternative lender for small businesses that can’t get traditional loans.
The nonprofit group estimates that it has invested more than $2,175,000 in Putnam, Rockland and Westchester counties. Those loans have helped create about 3,000 jobs and 78 start-up businesses.
“A lot of businesses, particularly start-ups, have a very difficult time getting bank financing,” said Kim Jacobs, Community Capital’s executive director. “Banks really look for businesses to be out there two or three years before they want to take the risk.”
Some industries, like restaurants, have a difficult time getting financing because bankers perceive them to be high risk. Sometimes borrowers don’t have enough collateral or they have credit scores that fall short of what banks prefer.
“Really our goal is to step in to help them to start or grow their business. It gives them a chance to be a successful borrower,” said Jacobs.
To read four Community Capital stories, click here to visit The Journal News.
Credit: Ernie Garcia, The Journal News, lohud.com