May 11, 2020
Funds are still available for small businesses with priority in low- and moderate-income census tracts
New York, NY (May 11, 2020)—For Phase 2 of the Paycheck Protection Program, the National Development Council (NDC) raised $100M and has so far connected small businesses with more than $42M in funded PPP Loans. More than half of the amount has been disbursed to small businesses within low- and moderate-income census tracts. NDC is an economic development nonprofit headquartered in New York City, founded in 1969 to increase the flow of capital in underserved communities.
NDC is making PPP loans available through its Grow America Fund (GAF), and still has funding to disburse. GAF is a Community Development Finance Institution (CDFI), and therefore priority is given to small businesses within CDFI-eligible census tracts, which are more likely to be owned by women and minorities. Loan funds are still available in certain areas through the NDC website (see link below for more information).
“NDC is the only nonprofit SBA licensed Small Business Lending Company in the US that is raising and directing PPP loan funds to low- and moderate-income areas,” said Daniel Marsh, President of NDC. “When we saw how the first round of PPP was going, we knew we had to redirect our entire staff to the task of raising and disbursing small business loan funds where they are most needed. We are a small business as well, so we get it.”
NDC’s approved PPP loans will save 7,193 jobs in some of the hardest hit areas of the country: New York, California, Ohio, Florida, Washington, Michigan, Ohio and Delaware. The number of jobs saved will continue to grow as more loans are approved.
One recipient of an NDC GAF loan fund is StreetSquash based in Harlem. This comprehensive nonprofit youth enrichment program combines squash instruction with academic tutoring, community service, college preparation, leadership development, and mentoring for young people ages 11-24, serving up to 400 children a year. StreetSquash applied to both rounds of PPP through their traditional bank but neither of those loan applications were successful.
“NDC turned around our application to get it approved in 14 hours,” said George Polsky, Executive Director of StreetSquash. “We are using the money to pay our staff – thirty employees at two locations. We haven’t laid anyone off. We’re a great model for this program because, except for squash, all our programs are fully functional online. Our staff is critical to make that operational.”
NDC raised funds for its GAF PPP loan fund by working with the community development arms of its banking partners. NDC secured $50M from JP Morgan Chase and $25M in seed capital from Northern Trust. In addition, the Inherent Foundation, The Blamer Group through the Goldman Sachs Philanthropy Fund, Chase, PNC, TD Bank, US Bank and Amalgamated Bank, and the New York City Economic Development Corporation directed an additional $55M in credit facilities to GAF for PPP. The Longwood Foundation, the Welfare Foundation, the Jessie Ball duPont Fund and Discover Bank provided grants for businesses in the State of Delaware. NDC continues to raise funds for ongoing SBA lending.
NDC GAF funds are still available for PPP loans, with a priority on applicants that do business in CDFI-eligible census tract.
To apply for a PPP loan through NDC GAF, please visit our website https://growamerica.org/covid-19-resources/.
OUR MISSION SINCE 1969
NDC directs capital to support the development and preservation of affordable housing; creates jobs through small business lending; advances livable communities with social infrastructure investment; and builds capacity with hands-on technical assistance to local governments.