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NYC MBE Guaranty Facility

The New York City Minority Business Enterprise Guaranty Facility (MBE Guaranty Facility) is a new initiative to support minority-owned business enterprise (MBE) developers seeking to develop critically needed affordable housing across the five boroughs. MBEs have historically faced challenges securing construction loans due to restrictive financial barriers, including lender guaranty and liquidity requirements. This results in many MBEs needing to form partnerships with larger firms that dilute their ownership, reduce their developer fees, and limit their ability to grow and take on more projects independently in the future.

The MBE Guaranty Facility helps to remove those barriers by providing a total of up to $50 million in back-stop guaranties to help MBE developers independently access the capital required to secure construction financing and develop City-financed affordable housing projects in New York City. A partnership of the New York City Department of Housing Preservation and Development (HPD), the NYC Housing Development Corporation (HDC), the Urban Investment Group at Goldman Sachs and CPC, the MBE Guaranty Facility will support as much as $500 million in private construction lending to MBEs, allowing their businesses to grow and take on more, and larger, affordable housing development projects in the future.

Program Overview

Term Sheet

Eligibility at a Glance

Application Overview