NEW YORK--(BUSINESS WIRE)--More than half a million small businesses in the New York Metro Area, especially those owned by women and minorities, now have a new way to get working capital to help their businesses thrive. VEDC (Valley Economic Development Center), a nationally expanding non-profit lender to small businesses, has launched the Tri-State Business Opportunity Fund (TBOF), backed by a $20 million commitment from the UBS Elevating Entrepreneurs initiative. VEDC’s mission is to help create jobs and promote economic development.
Located in New York City, TBOF will provide capital to businesses that do not qualify for a traditional small business bank loan because they do not have sufficient credit scores, historical cash flows or collateral. Funds are available for qualified small business owners who need loans of $50,000 to $500,000.
“New York City alone has the highest concentration of small businesses in the country, according to the U.S. Census Bureau,” said VEDC President Roberto Barragan. “Vibrant small businesses are crucial to economic development, especially in low and moderate income communities. However, many of these businesses are still reeling from the effects of the economic recession. They still can’t get the loans they need for working capital, to buy equipment or inventory, or to make tenant improvements.”
“For the past 37 years, VEDC has successfully helped small businesses in Los Angeles, Chicago, San Francisco and other major metropolitan areas get the loans they need when other funding sources turned them down. By giving small business owners a range of options, including direct loans, micro-loans and SBA guaranteed loans, we help them find the right financing option that best fits their needs,” he said.
As part of UBS’s Elevating Entrepreneurs (EE) program, TBOF will provide mentoring and educational opportunities in addition to access to capital to high-potential entrepreneurs. EE is a joint undertaking of UBS Community Affairs Americas and UBS Bank USA.
“For small business owners in New York, New Jersey and Connecticut, the Tri-State Business Opportunity Fund represents an innovative and affordable source of capital,” said Bob McCann, CEO of UBS Group Americas. “UBS is proud to support these hardworking individuals through our Elevating Entrepreneurs initiative, and we are committed to helping create jobs in communities across the Americas.”
The $20 million commitment from UBS will increase VEDC’s capacity as a national lender. VEDC’s growing footprint enables small businesses, banks and foundations to work with one experienced partner and have a greater impact. It currently offers additional small business funds throughout California, Nevada, and the Chicago metro area, with plans to launch funds in other major cities in the upcoming months.
VEDC is a desirable partner to many of the nation’s largest financial institutions, including Bank of America, Chase, Citi, Dignity Healthcare, Goldman Sachs, UBS and Wells Fargo. It helps banks meet their federally mandated Community Reinvestment Act (CRA) and Consumer Financial Protection Bureau (CFPB) requirements to address the needs of borrowers in all segments of their communities.
To date, VEDC has lent close to $330 million in direct and guaranteed loans to small businesses. It has served more than 100,000 clients, created more than 18,000 jobs and helped start 1,900 businesses.
VEDC has established a local office for the Tri-State Business Opportunity Fund in space owned by UBS, located at 237 Park Avenue, 9th Floor, New York, NY 10017. It has also appointed Jessie C. Lee as its director of small business lending. Ms. Lee formerly oversaw the small business finance services at the NYC Small Business Solutions Center in lower Manhattan.
VEDC is a certified Community Development Financial Institution (CDFI) based in Los Angeles whose mission is to help create jobs and promote economic development in under-served communities. It provides loans and micro-financing options to small businesses, particularly those owned by women and minorities, that don’t quality for traditional bank financing. VEDC has provided more than $330 million in direct and guaranteed loans to 100,000 small businesses and created more than 18,000 new jobs. VEDC’s expanding portfolio is composed of community-based loan funds in Los Angeles, the New York Metro Area, Chicago, San Francisco, Las Vegas and Salt Lake City. For more information, visit www.VEDC.org.
About UBS AG
UBS draws on its 150-year heritage to serve private, institutional and corporate clients worldwide, as well as retail clients in Switzerland. Its business strategy is centered on its pre-eminent global wealth management businesses and its leading universal bank in Switzerland. Together with a client-focused Investment Bank and a strong, well-diversified Global Asset Management business, UBS will expand its premier wealth management franchise and drive further growth across the Group.
About UBS Bank USA
UBS Bank USA is a Utah industrial bank regulated by the Federal Deposit Insurance Corporation (FDIC) and the Utah Department of Financial Institutions. Based in Salt Lake City, Utah, UBS Bank USA offers FDIC-insured deposit accounts, as well as credit cards, mortgages and securities backed loans. UBS Bank USA is a wholly-owned subsidiary of UBS AG, one of the largest asset managers globally.
About UBS Community Affairs & Corporate Responsibility, Americas
UBS Community Affairs & Corporate Responsibility, Americas is dedicated to providing under-resourced, high-potential individuals with access, advice, and education to help develop more enterprising local communities. This is achieved through national programs, local giving and volunteer opportunities. UBS Community Affairs & Corporate Responsibility, Americas is committed to working together with its business partners globally to help drive real change.
About UBS’s Elevating Entrepreneurs Initiative
Elevating Entrepreneurs (EE) is a UBS initiative that aims to empower under-resourced, high-potential small business owners in communities across the United States with access to resources that are seldom available to companies of their size. Through this program, UBS provides small business owners with high-impact business mentoring, access to capital as well as education and networking opportunities to help them grow their companies, create jobs and develop more enterprising local communities.