Special Loan Programs for NYC Business Owners
New York City runs loan programs built for small business owners, and most people who could use them have never heard of them. If your business brings in at least $50,000 a year, the City will lend you between $25,000 and $500,000 at 7.5%, with repayments that rise and fall with your revenue. If you do work for the City, there is a separate loan of up to $1 million at 3% or less.
You do not need to be a contractor, a startup or a business with perfect credit to look at these. This guide covers what the City offers, what else New York State makes available to NYC businesses, what each loan costs and where to apply.
At a glance
| Program | Amount | Rate | Who it's for |
|---|---|---|---|
| NYC Future Fund | $25,000 to $500,000 | 7.5% | NYC small businesses with $50,000+ in annual revenue |
| New York Forward Loan Fund 2 | Up to $150,000 | 9.5% to 12.5% | New York State small businesses, for almost any purpose |
| Main Street Capital | Up to $100,000 | Fixed 9.9% | Very small businesses statewide |
| Regional Revolving Loan Trust Funds | Set by each lender | Set by each lender | Businesses banks turn down |
| NYC Contract Financing Loan Fund | Up to $1,000,000 | Fixed, up to 3% | Businesses with a City contract |
NYC Future Fund
The Future Fund is the City's flagship loan for small businesses. It launched as a pilot in 2025 and was relaunched in March 2026 with $80 million. The City changed three things based on feedback from business owners: the interest rate came down, the revenue minimum came down, and repayment became more flexible.
What you get: revenue-based loans of $25,000 to $500,000 at a 7.5% annual rate, down from 9% in the pilot. Interest is paid monthly. Principal payments are tied to your revenue and are only required when your revenue exceeds a set threshold, which is 25% of your average monthly revenue. The City says repayment can run as low as 2% of monthly revenue depending on loan size. When business is slow, you pay less. You also meet monthly with a financial coach until the loan is repaid.
Who qualifies: businesses with $50,000 or more in historical or projected annual revenue. That is down from $300,000 in the pilot, which opens the door to newer and smaller businesses. The City is also running outreach in neighborhoods that have historically had the hardest time getting affordable financing.
How to apply: start at nyc.gov/futurefund. You answer a few questions, select a participating lender, and the lender reviews your application and makes the final decision. The full terms are on the NYC Business page.
State programs open to NYC businesses
New York State funds several loan programs that any eligible business in the state can use, including businesses in the five boroughs.
New York Forward Loan Fund 2. Loans of up to $150,000 for almost any business purpose, including working capital, inventory and marketing. Terms run 36 to 72 months and there is no prepayment penalty. The interest rate runs from 9.5% to 12.5% and moves with the prime rate, so the number you see today can change. It is listed on the NYC Business financing assistance page and offered through the community lender Pursuit. It is easy to confuse with the original New York Forward Loan Fund from 2020, which had 3% and 2% rates. That is not the current product.
Main Street Capital. A $10 million fund from Empire State Development, run with Pursuit and funded through the federal State Small Business Credit Initiative. It was reported in 2025 as offering loans up to $100,000 at a fixed 9.9% for up to six years, for very small businesses, including those with fewer than 10 employees and those owned by socially and economically disadvantaged individuals. Check with Pursuit to confirm it is still open and what the current terms are.
Regional Revolving Loan Trust Funds. Empire State Development funds regional nonprofit lenders around the state to make working capital loans to small businesses that cannot get enough credit, or the right terms, from commercial lenders. Each lender sets its own rates, terms and collateral requirements, so call the one that serves your area. The ESD program page lists them.
If you work with the City: Contract Financing Loan Fund
This one is for a specific situation. Winning a City contract is good news and a cash flow problem at the same time, because you pay for labor, materials and subcontractors long before the City pays you. This fund closes that gap.
What you get: loans of up to $1,000,000 at a fixed annual rate of up to 3%. Repayment follows the project payment schedule, so you are not making payments before you get paid. Closing fees of up to 3% may apply, so ask for the full cost before you sign.
Who qualifies: an operating business that is a prime contractor or subcontractor on a contract with a City agency or a City-funded entity.
How to apply: create or log in to your SBS Connect account, request financing assistance and select Contract Financing. An account manager at your local NYC Business Solutions Center or Industrial Business Service Provider should reach out within two business days and help you submit the application to a lender. You can also call 888-SBS-4NYC (888-727-4692) and ask for the Contract Financing Loan Fund. Details are on the program page.
Free help with the application
NYC Small Business Services offers free financing assistance. The team helps you figure out which product fits, put your documents together, calculate repayment and connect with lenders, including banks, credit unions, nonprofit lenders and the SBA. If you are not sure where to start, start there.
Three things to check before you apply
The rate is not the whole cost. Closing fees, financed fees and coaching requirements all change what you pay, so ask every lender for the total cost.
Match the loan to the need. A floating rate can cost more next year than it does today, and a revenue-based loan works best when your sales rise and fall.
Expect lenders to read your numbers first. Clean financial statements, recent tax returns, a cash flow projection and a clear plan for the money make approval easier.
Terms change often, so confirm current details on each linked page before you apply.
Looking for funding that does not need to be repaid? See our guides to the NYC non-dilutive grant playbook and New York pitch competitions, or browse the full Funding Opportunities directory.
If you need help navigating the opportunities in New York City and New York State's funding ecosystem, or help growing your small business or social impact venture, reach out to Startup Advisory Group for a meeting at startupadvisorygroup.co/meet. We would be happy to see how we can help you grow.