New York has two very different lending markets, New York City and upstate, and the best lender for you depends on which one you are in and what the money is for. Start with a bank or SBA lender that already works your region, then add a state program, a Certified Development Company or a CDFI when the deal needs extra support.
Who lends to New York businesses
New York City is home to the largest banks in the country. JPMorgan Chase and Citi both run big business banking groups here, and Bank of America, Wells Fargo and TD Bank have strong city and suburban footprints. These banks fit established companies with solid financials and a full banking relationship to bring.
Upstate, regional banks lead. M&T Bank, headquartered in Buffalo, is one of the most active business and SBA lenders in the state. KeyBank, Citizens and NBT Bank serve businesses across Western, Central and Northern New York. In the city and on Long Island, Dime Community Bank and Valley Bank are busy commercial lenders. Community banks across the Hudson Valley, the Finger Lakes and the North Country often know local manufacturing, farming and tourism businesses best.
Some New York banks are themselves certified CDFIs. Carver Federal Savings Bank in Harlem and Ponce Bank in the Bronx both focus on underserved neighborhoods and small businesses that larger banks may overlook.
Credit unions lend to businesses too. Bethpage Federal Credit Union on Long Island runs a business banking group, and ESL Federal Credit Union in Rochester is one of that city's leading small business lenders. Compare them under credit union lenders.
Online lenders fund working capital and lines of credit fast, at a higher cost. They suit a short gap, such as funding a large order before the customer pays.
SBA lending and the three district offices
The SBA covers New York through three district offices: the Metro New York District, the Syracuse District and the Buffalo District. Metro New York serves the five boroughs, Long Island and the lower Hudson Valley. Syracuse and Buffalo cover the rest of upstate. Each office manages lender relationships and works with Small Business Development Centers and SCORE chapters that help owners prepare. The SBA guarantees loans made by lenders rather than lending directly for most programs.
For SBA 7(a) loans, New York has national banks, regional banks such as M&T and a wide set of national SBA specialists. A lender with Preferred Lender status can approve the loan in house.
For SBA 504 loans, you pair a bank with a Certified Development Company. Pursuit, the lending organization formerly known as the New York Business Development Corporation and its affiliates, is a major SBA 504 lender in the state and also makes SBA 7(a) and its own mission loans. A 504 loan finances owner occupied real estate and long life equipment with a low down payment and a long fixed rate, which matters in a market where commercial property is expensive.
New York state and city programs
Empire State Development, the state's economic development agency, runs New York's State Small Business Credit Initiative programs. Several are useful to borrowers.
The Capital Access Program provides portfolio insurance to participating lenders, which lets them approve loans they would otherwise turn down. You apply to the lender, not the state.
The Main Street Capital Loan Fund supports small loans to startups and early stage businesses through partner lenders.
The New York State Small Business Revolving Loan Fund offers loans through a network of community lenders, many of them CDFIs, aimed at small and underserved businesses.
The New York State Contractor Financing Program and the Surety Bond Assistance Program help contractors finance work on public contracts and qualify for bonding.
In the five boroughs, the city's Department of Small Business Services runs the NYC Small Business Opportunity Fund, which makes lower cost loans through participating CDFIs.
CDFIs and mission lenders
Community Development Financial Institutions serve owners who are newer, have thinner credit or operate in underserved areas. Pursuit lends statewide. Renaissance Economic Development Corporation in Manhattan lends to small businesses with a focus on immigrant and low income communities. Accompany Capital, formerly the Business Center for New Americans, offers microloans to immigrant, refugee and women entrepreneurs. CDFI loans are usually smaller and come with coaching. Browse CDFI lenders on the register.
Matching your need to a lender
| Your situation | Where to start | Why |
|---|---|---|
| Buying your building or major equipment | SBA 504 through Pursuit or another CDC and a bank | Low down payment, long fixed rate |
| Established business, growth capital | Regional bank or SBA 7(a) lender | Larger amounts, longer terms |
| Thin collateral or short history | Lender in the Capital Access Program | State support lowers lender risk |
| Startup or very small loan | CDFI or a Main Street Capital Loan Fund partner | Underwrites the owner and the plan |
| Contractor on public work | Contractor Financing Program lender | Funds the job and supports bonding |
| Need cash in days | Online lender | Speed over price |
How to choose
Start with the use of funds. Real estate and long life equipment point to SBA 504 or a bank commercial real estate loan. Acquisitions, refinancing and growth point to SBA 7(a) or a bank term loan. Payroll and inventory swings point to a line of credit.
Then match the lender to your region. A Manhattan bank, a Buffalo regional lender and a Long Island credit union each read risk and collateral differently. A lender that already finances your industry and your area will understand your leases, your seasonality and your customers.
Prepare a clean file: two to three years of business and personal tax returns, current financial statements, a debt schedule and a short repayment story. If collateral or time in business is the issue, ask each lender whether it uses the Capital Access Program or partners with a CDFI on state funds.
Keep the shortlist to two or three lenders and compare full offers on term, amortization, fees, collateral, prepayment and the personal guarantee.
You can browse every New York lender on the register at New York business lenders, filtered by loan type and lender type.
Need help choosing a lender? Sign up through BusinessLoanBroker.ai to share your financing needs and get help with your next steps. You can also explore financing guides and tools before you apply.