NEW YORK–Inclusiv said it has been awarded $5 million from  New York State’s Empire State Development (ESD) to expand access to small business lending through CDFI credit unions in the state. 

“This is a first-of-its-kind partnership between Inclusiv and ESD that will help increase access to capital for small businesses in low income and underserved communities served by CDFIs throughout the state,” Inclusiv said in a statement.

According to Inclusiv, it plans to leverage the $5 million investment to purchase more than $15 million in small business loans from CDFI-certified credit unions with a “strong track record of serving low-income and underserved communities in New York State.”

The organization added that it will be able to help credit unions make more loans to small businesses in their communities by purchasing portions of each small business loan under $500,000, which will free up lending capital the credit union can use to help other borrowers.

The ’Engines of Economy’

“Small businesses are the engines of New York’s economy, and the anchors of our communities, and Empire State Development is proud to help them succeed,” Empire State Development EVP of Small Business and Technology Development Elizabeth Lusskin said in a statement. “Access to capital remains one of the biggest barriers for Socially and Economically Disadvantaged Individuals and the small businesses they own. By partnering with Inclusiv on this first-of-its-kind SSBCI loan participation program, we are addressing that challenge head-on — strengthening CDFI credit unions and empowering more small businesses to access the resources they need to succeed.”

The funding will further expand Inclusiv’s Small Business Capital Initiative program offerings, which are supported by Mastercard and include our Small Business Lending Training, Loan Participation Marketplaceand Loan Loss Fund and Loan Processing and Servicing support, the organization said. 
“ESD’s investment will greatly increase liquidity for CDFI credit unions while also creating financial opportunity for small businesses that need it the most,” it added.

Where It Will Start

Inclusiv said it will start with the 11 CDFI-certified community development credit unions in New York State that are active small business lenders. In addition, it said it expects to enroll CDFI credit unions with small business lending programs that are authorized to work in NYS and enroll credit union graduates from the Inclusiv’s Small Business Lending Training to start up their small business lending in the near future.  

‘Grateful for Partnership’“We are grateful for this partnership with the Empire State Development in this groundbreaking small business initiative. CDFI credit unions play a crucial role investing in small businesses that are too often turned away by big banks,” Inclusiv President and CEO Cathie Mahon said in a statement. “We look forward to helping businesses to grow, increase their revenue and create jobs