New York City Comptroller Mark Levine is rolling out a new lifeline for local entrepreneurs: zero-interest loans of up to $60,000 for small businesses across the five boroughs, offered through a fresh partnership with the Hebrew Free Loan Society. The initiative targets low- and moderate-income owners who might otherwise get squeezed by high-cost credit that can bury neighborhood shops.
As detailed by the Comptroller’s Office, the program commits $8 million in interest-free capital and builds on a booster-loan model Levine first piloted when he served as Manhattan borough president. The new fund will underwrite loans up to $60,000 and pair that cash with hands-on support from Hebrew Free Loan Society staff, with a particular focus on minority-owned, immigrant-owned and first-generation businesses that frequently hit walls with traditional lenders.
How the Loans Will Work
The mechanics are laid out on the Hebrew Free Loan Society site. Loans are paid back in monthly installments, starting three months after the money is disbursed. Repayment terms are typically set at 12 to 36 months by HFLS’s Small Business Committee, and payments are pulled automatically by debit each month.
Borrowers need a guarantor for loans up to $30,000 and two guarantors for amounts above $30,000. Guarantors must be U.S. citizens or permanent residents who live in New York, New Jersey or Connecticut, have a checking account, hold a credit score of at least 680 and report total family income of at least $60,000. Applicants are asked to upload recent tax returns and business documents, complete an identity check and sit for a short interview. According to the Hebrew Free Loan Society, completed applications are reviewed monthly, and approved borrowers can expect funds within three business days.
Officials and the Numbers
Coverage in amNewYork reports that the program is expected to support about 200 small businesses, with an average loan size of around $40,000 and no fees attached. In a statement to the outlet, Levine said, “The positive return on investment these loans will have for our entire economy is overwhelmingly evident.”
Leaders at Hebrew Free Loan Society told the outlet they will fund and administer the effort without drawing on city dollars, and said they plan to prioritize neighborhoods and borrowers that have historically been locked out of other financing options.
Why It Could Matter for Neighborhood Shops
According to the Comptroller’s announcement, Hebrew Free Loan Society has been making interest-free loans since 1892 and has deployed tens of millions of dollars to entrepreneurs over the years, a track record that officials say should help the citywide rollout move quickly. For small operators staring down pricey credit cards or predatory terms, a zero-interest option could be the difference between expanding and closing up shop.
Business owners interested in the program can find full details and application information directly from the Hebrew Free Loan Society and the Comptroller’s Office.
