The New York City Economic Development Corporation announced in a release that it will partner with Capital Business Credit to launch the NYC Fashion Production Fund.
The Fund aims to provide production financing at below-market rates. Both the NYCEDC and CBC have put $1 million into the venture; according to the release, at full capacity, the Fund can issue $32 million in financing over the next four years. The goal is to support emerging fashion brands, as well as incentivize local production.
Designers who would apply for this money would need a minimum of three seasons under their belt and must be based in New York City; those who qualify receive $50,000 to $300,000 at below market rates and with “flexible terms.” Loan recipients must pay back the money within 60 to 120 days; more details can be found at the NYC Fashion Production Fund’s website.
In addition to the loan money, the Fund offers a “mentorship initiative” which connects the designers with business execs.