Below you will find some answers to the questions we get asked a lot. Please take the time to browse through our responses to see if they answer any of the questions you have.
Do you give grants?
No. There are no grants for small businesses.
How much can I borrow?
Loans are available for $1,000 to $50,000, depending on the needs of your business. You will be asked to provide a detailed budget for how you intend to use the loan proceeds. If a loan is approved, Community Capital New York usually pays vendors directly whenever feasible.
How long can the term of the loan be?
Our maximum loan term is 5 years.
What kind of small business loans does Community Capital New York provide?
Community Capital New York provides term loans – the same monthly payments are applied to principal and interest according to an amortization schedule provided to the borrower at closing.
What can I use the small business loan proceeds for?
The loan proceeds must be used directly for business purposes. For example, you can use loan proceeds for Equipment, Inventory, Materials, Marketing, Licensing, Business Debt refinancing and Working Capital. Please note that our loan proceeds cannot be used to purchase real estate.
Will I (the entrepreneur) or the business be the borrower?
The business will be the borrower, but you the owner(s) will be required to sign a personal guaranty. This is standard on all small business loans (including those from traditional lenders.)
How long does the application process take?
The length of the overall process is very much dependent on how quickly the applicant supplies all the required data and how quickly you respond to questions from our underwriters. You will be required to meet with our Loan Committee (made up of Bankers and fellow Small Business Owners) who make the final decision on all loan requests above $10,000 and the committee meets once per month. On average, from start to finish, including closing the loan process takes approximately 6 weeks – but rest assured there is constant communication with you.
Does Community Capital New York have a special program for minority and/or women-owned businesses?
While Community Capital New York does not have any programs specifically targeting women or minorities, we encourage female and minority entrepreneurs to approach us for financing. Over 70% of our loans have been made to women and minority entrepreneurs.
Can I pay my loan off early without penalty?
Yes, Community Capital New York does not charge a prepayment penalty – so you can pay off your loan at any time.
How much is the application fee?
Community Capital New York charges a $50 application fee for loan requests up to $10,000 and a $100 application fee for loan requests above $10,000.
What are the basic eligibility requirements for a loan?
Yes, a start-up business (defined as a business that has been operating for less than 12 months) is eligible for a loan with Community Capital. Please note that a Business Plan must be provided, along with cash flow projections, demonstration of some investment in the business by the owner, and demonstration that at least one of the owners has applicable industry experience.
Does Community Capital New York require collateral?
Yes, Community Capital New York requires collateral. We usually file UCC financing statements on the business and all assets; Collateral therefore can consist of the assets purchased with loan proceeds and other business assets. Collateral can also consist of personal assets of the borrower (i.e. cars etc.)