- 1The NYC Future Fund offers revenue-based loans starting at $25,000.
- 2Payments are a percentage of monthly revenue and rise or fall with sales.
- 3Marketing cites an annual interest rate and a 3% origination fee but no APR.
New York City officials continue to promote the NYC Future Fund, the city's revenue-based loan program, as a lifeline for seasonal small businesses. Marketing for the program lists an interest rate and an origination fee, but no APR.
The pitch
Kenny Minaya, Commissioner of the New York City Department of Small Business Services, says the fund offers loans starting at $25,000 with lower interest rates and repayment terms that flex with revenue. He and Mayor Zohran Mamdani announced the initiative in March, and Minaya has since described it as one of the city's signature small business programs.
At a July event hosted by the Dominican American Chamber of Commerce, Minaya told attendees the mayor and he had launched the program themselves, and that it is for businesses whose revenues fluctuate through the year.
According to the program's official website, borrowers repay principal as a share of each month's revenue rather than in set installments, so payments climb in strong months and fall in weak ones. The site says that makes cash flow easier to manage than a traditional term loan.
What is disclosed
The program's marketing does not state an APR. It refers instead to two separate costs: an "annual interest rate" and a "3% origination fee."
Source reporting: deBanked.
