May 20, 2014
he funds will be available through the City of Buffalo and the Erie County Industrial Development Agency to small and mid-sized businesses
In partnership with the City of Buffalo and the Erie County Industrial Development Agency (ECIDA), National Development Council’s (NDC) Grow America Fund is launching the JPMorgan Chase “Small and Medium Enterprises (SME) Collaboratives” lending program in Buffalo, N.Y. The new lending program is a $33 million commitment to help CDFIs and small business lenders build capacity and jumpstart job creation in low- and moderate-income communities across the United States.
NDC Grow America Fund is a small business loan program that provides small business lending across the country. Using capital provided by the JP Morgan Chase SME Collaboratives Grant, the Grow America Fund will provide low-interest loans to existing small businesses in Buffalo and Erie County.
“The NDC’s Grow America Fund is welcome news as it will provide an important funding tool that links private and public partners, like JPMorgan Chase, the City of Buffalo and the ECIDA, to support and strengthen small businesses in our community,” said Congressman Brian Higgins. “Improving the lending capacity to provide resources to existing businesses looking to stay and grow here takes collaboration and confidence in the marketplace and helps build on the job growth and positive momentum building in our region”
“Small businesses and entrepreneurs are important drivers of job creation and innovation in Buffalo, spearheaded by people who have a vested interest in our neighborhoods, schools and our quality of life,” said Buffalo Mayor Byron W. Brown. “With over $4.3 billion in new economic development activity underway, we continue to work hard and cooperatively with our many great partners to retain, attract and expand small business in the city. We are thrilled that the National Development Council Grow America Fund is launching the JPMorgan Chase small business lending program in Buffalo that will further contribute to our city’s entrepreneurial community.”
NDC’s Grow America Fund Buffalo lending program is open to qualified existing businesses in operation for at least three years, with between two and 500 employees. Real estate investments or development projects and financing entities are not eligible. The loans will range from $150,000 to $2.5 million, however the amount an eligible business can borrow is subject to underwriting and available cash flow.
“It is great news for local small business that the NDC Grow America fund is expanding small business lending here in Erie County,” said Erie County Executive Mark C. Poloncarz. “Small businesses are the backbone of our economy and are a vital component of our regional economic success. These businesses can now apply for a loan to build capacity, add jobs or product lines, or otherwise grow and improve their companies, which is good news for everyone in Erie County.”
In 2012, the ECIDA partnered with the NDC to create the “Grow Erie” fund.” That $4 million fund included $3 million in seed money from the EDC, combined with $1 million from the ECIDA.
That loan program, like the new infusion of “Grow America” fund, is much more flexible than traditional lending programs. The “Grow Erie” fund, which offers loans ranging from $100,000, up to $2 million, features repayment schedules of up to 25 years and lower rates than those offered by traditional banks and other financial institutions.
“This is a great new tool to assist smaller businesses looking to grow and prosper across Erie County. It’s a wonderful companion program to the Grow Erie fund,” said ECIDA President and CEO Steve Weathers.