Independent since 2015
Financing a small business in New York City
New York was one of the first states to require cost disclosures on commercial financing, and in 2019 it limited confessions of judgment. This is the page for anything specific to financing a business in New York City and New York State.
What New York does differently on financing
These are the New York rules to know if you have taken a merchant cash advance or are about to:
Confessions of judgment in New York
Since August 30, 2019, a funder cannot file one against a signer outside New York. In-state businesses are still exposed.
When an advance counts as a loan
The 16% and 25% usury caps, the three-factor test New York courts use, and the $1.065 billion Yellowstone judgment.
If a funder sues or freezes your account
The 20 and 30 day deadlines to answer a summons, how a bank restraint works, and where to get help in the city.
UCC liens in New York
How to search for a filing against your business, how long it lasts, and how to demand a termination.
Commercial financing disclosure
Since August 2023, funders must give you a standardized cost sheet with an estimated APR on offers of $2.5 million or less, merchant cash advances included. Check yours against the NY offer checker.
Where NYC businesses get funded
New York City has banks, credit unions, community lenders and SBA lenders on one side, and a large number of merchant cash advance brokers on the other. If you qualify with the first group, you will pay far less. The city also helps for free: NYC Small Business Services offers financing counseling through its NYC Business Solutions Centers.
“If I ran a shop in the five boroughs, I’d call the city’s free financing help and two community lenders before I returned a broker’s call. The NYC Future Fund charges 7.5%. A typical advance costs more than ten times that.”
Term loans, lines of credit, SBA and EIDL
What term loans, lines of credit and SBA loans cost, and who qualifies.
Small business loans in NYC
19 city, state and community loan options with loan sizes, rates and who qualifies, plus the banks making the most SBA loans here.
SBA loans in NYC by borough
7,597 loans and $3 billion since October 2019, counted from the SBA’s own loan file: by borough, lender, loan size and industry.
Merchant cash advances, explained
How a 1.4 factor rate turns into roughly 95% APR.
Restaurants, contractors and shops
Three kinds of business where the city’s own rules change what you need to borrow and when.
Restaurant financing in NYC
A $4,352 liquor license with a 22 to 26 week wait, gas and permit timing, and what 755 SBA loans to city restaurants show.
Contractor financing in NYC
Prompt payment deadlines, the 5% retainage cap, lien dates, and the city loan fund that charges up to 3%.
Financing a retail store in NYC
Lease guaranties, the commercial rent tax, license caps, and the loans shops here get.
Founders building here
The interview archive goes back to 2016: named founders, on the record, on how they built and paid for their companies.
Founder interviews
Long-form conversations with founders who built something in New York and elsewhere. On the record, named, unedited questions.