New York, NY – New York City has launched a program designed to help women entrepreneurs access affordable lines of credit.
The new program, called WE Credit, will provide up to 250 women entrepreneurs with lines of credit averaging $50,000 at below-market interest rates. WE Credit is made possible through a public-private partnership between the City, Goldman Sachs, Squarespace and Fundation. Fundation, a credit solutions provider, will provide the platform through which women entrepreneurs can access and manage the lines of credit.
“To truly become the fairest big city in America, we need to give everyone an opportunity to participate in our economy – regardless of your gender, race or ethnicity,” said Mayor Bill de Blasio. “That means breaking down barriers and providing the resources people need to establish, grow and sustain their businesses. With WE Credit, we’re breaking down barriers to capital and ensuring women entrepreneurs aren’t left out of the economic opportunity this city has to offer.”
Many entrepreneurs rely on personal credit cards and payday lenders, which lend at interest rates that are more than 30 percent. With the launch of WE Credit, the City and its partners will help women entrepreneurs improve their credit scores and avoid high-interest rates. Percentage Rate will be less tham 12 percent, subject to material changes in the market. In addition to providing credit support through the loan loss reserve, the City will help women entrepreneurs through the loan application process.
“Easy access to an affordable line of credit can be the difference between a business thriving or folding.
With WE Credit, we are leveling the playing field for women entrepreneurs who historically lack the same support as men to grow their businesses,” said Former Deputy Mayor Alicia Glen. “Through our partnership with Goldman Sachs 10,000 Small Businesses, Squarespace and Fundation, we’re building out our portfolio of financial products designed to address the needs of New York City’s women entrepreneurs.”