What Every Employer Should Know
Investing in New York’s Small Businesses
The Fund seeks to diversify its investments and achieve a risk-adjusted rate of return through a commitment to the New York Business Development Corporation (NYBDC). NYBDC underwrites loans to small businesses in New York State, often with guarantees from the Small Business Administration, for working capital, equipment, the acquisition of real property, capital improvements and the refinancing of existing loans. NYBDC has successfully completed loans to a wide range of business enterprises, including retailers, restaurants, small manufacturers and a variety of other service businesses across the State. By focusing exclusively on small business lending, NYBDC can frequently offer more favorable terms than other lenders. NYBDC has a goal of making at least 25 percent of its loans to women- or minority-owned businesses
The Fund has been an investor in NYBDC since 1987 with commitments totaling $400 million. In 2010, the Fund approved a fourth $100 million commitment to support NYBDC’s small business loan program. Since this program began in 1987 NYBDC has made 1,042 loans totaling $346 million to businesses that employ over 21,000 New Yorkers. During the fiscal year ending March 31, 2014, NYBDC made 48 loans totaling $23.0 million.