Image credit: New York City Council.
On September 14, 2023, the City Council passed Int. No. 969-A, which requires the Department of Small Business Services to provide information on local community development financial institutions on the city’s one-stop shop business services portal. According to the U.S. Department of the Treasury, community development financial institutions are financial lenders that help, “promote access to capital and local economic growth in…low-income communities… through monetary awards and the allocation of tax credits.”
Local Law 94 of 2022 created a one-stop business services portal to assist small business owners with accessing business-related information and services citywide. With the passage of Int. No. 969-A, the portal will now include guidance on selecting a lender for small businesses across the city. This guidance will include the following information on financial institutions: a directory, a description of services provided, the neighborhood or area in the city where it operates/provides services, and the types of loans they offer.
Councilmember Mercedes Narcisse, the primary sponsor of the bill, stated, “With the passage of this bill, we are affirming our commitment to economic growth and vital financial support for our city’s businesses. Increasing education about the services offered by community development financial institutions will bridge the gap between these crucial institutions and businesses in need. We are ensuring that every entrepreneur, small business, and minority-owned enterprise in New York City has access to the resources and opportunities they deserve. This new law will help forge a path for a more prosperous and inclusive future for our city.”
The new law takes effect in March of 2024.
By: Michelle Blaifeder (Michelle is a New York Law School student, Class of 2024.)