NYC Touts its Revenue-Based Loan Program

New York City is doubling down on its support for revenue-based financing through the NYC Future Fund. This program targets small business owners who struggle with the rigid structures of traditional bank loans. Instead of fixed monthly installments, these loans allow for flexible repayments that scale up or down based on your actual sales volume. If you have a slow month, your payment drops. If business picks up, you pay more toward the balance. For retailers and operators, this is a significant alternative to high-interest merchant cash advances or strict SBA loans. The loans start at $25,000 and carry lower interest rates than most private sector revenue-based products. The city’s Department of Small Business Services is positioning this as a tool for businesses with seasonal revenue swings, such as home improvement contractors or specialized retail boutiques. While the program is currently focused on NYC-based businesses, its success highlights a growing trend of government-backed entities entering the alternative financing space to fill gaps left by traditional lenders.

Source: deBanked

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