In time for the first anniversary of the NYC Fashion Production Fund, Capital Business Credit and the New York City Economic Development Corporation have awarded nearly $681,000 in loans to this season’s recipients.
The latest labels to get a helping hand are Chris Gelinas, Harvey Faircloth, Charles Youssef, Rochambeau, Alasdair and Rune NYC. While applicants are considered on a case-by-case basis, each must have been in business for at least three seasons. And instead of offering a one-and-done type of policy, the NYC Fashon Production Fund allows for participants to request additional financial loans for local manufacturing after they pay back their initial loans.
Since its inception in the spring of 2014, the NYC Fashion Production Fund has granted more than $1.5 million in production financing loans to 10 New York City-based emerging fashion designers, including Rosie Assoulin and Karolina Zmarlak.
To date, about 60 women’s wear and men’s wear designers working in the five boroughs have inquired about the below-market rates for production financing, according to according to JoBeth Tananbaum, director of the New York City Fashion Production Fund and a vice president at CBC. Recipients generally receive between $50,000 to $250,000 grants. She said, “Since the Fund’s inception, we are pleased to see local production growing steadily, and look forward to our continued partnership with the city to raise up and build New York fashion businesses and brands.”
The public-private $2 million fund is comprised of $1 million contributions from both the New York City Economic Development Corporation and Capital Business Credit. At full capacity, the fund has the potential to issue as much as $32 million in financing within the course of four years. Tananbaum tends to keep an ongoing dialogue with applicants even those who don’t qualify. “We also like to see people come back as their business grows from one season to the next. These designers really know the ins and outs and are learning to grow their businesses from one season to the next.” Tananbaum said.