The BXEDC Helps Businesses in The Bronx Grow
The Bronx Economic Development Corporation (BXEDC) is a 501(c)3 non-profit that leads economic development policy in The Bronx, with a specific focus on providing capital access to small businesses. BXEDC’s core mission is to strengthen and expand current Bronx based businesses and to provide incentives to encourage businesses to establish or relocate to The Bronx.
Founded in 1981, and then later made administrator of the South Bronx Empowerment Zone, the BXEDC has spent 42 years providing services to the borough. The BXEDC also consults with Bronx Borough President Vanessa L. Gibson’s office on issues of economic development.
Commercial loans for businesses in the South Bronx Empowerment Zone.
Management and technical assistance, supported by SBA lending, to Bronx Business Improvement Districts and the businesses therein to revitalize commercial corridors.
Successfully advocating for The Bronx by bringing in funds from the city, state, and federal governments.
Creating a network of public and private Bronx stakeholders to encourage business growth and development.
Strategies, Partnerships, and History of the BXEDC
The BXEDC’s strategic priority is capital access for Bronx businesses. The Bronx is designated as a New York State Low- to Moderate-Income (LMI) area, a county where 97% of census tracts are designated as LMI. Though The Bronx is seeing a surge in new businesses and commercial activity, Bronx businesses lack access to affordable capital. According to the Center for an Urban Future, The Bronx saw a 66 percent increase in new business applications from 2019 to 2021. Yet when it comes to access to capital, The Bronx historically has had issues getting access to affordable loans. The BXEDC seeks to fill the unmet demand for capital in The Bronx to increase business activity and revitalize commercial corridors.
The Business Initiative Corporation of New York (BICNY) — the lending arm of the BXEDC — has been working with the U.S. Small Business Administration’s (SBA) 504 program. This program has a statutory job creation and retention compliance policy. BICNY’s performance, as reported to the SBA, is favorable with a portfolio currently at $34 million in across approximately 42 projects which have created or retained 1,967 jobs to date.
BXEDC primary programs include its Empowerment Zone and SBA loan programs. Through its role as manager of the South Bronx Empowerment Zone (EZ), BXEDC has access to over $20 million in funds to be used for economic development in the South Bronx, the area with the highest concentration of lower income census tracts.
The largest and most recent of these efforts was the Bronx Business Continuity Loan (BBCL) program, a local initiative during the COVID pandemic to support small businesses. 17 loans were disbursed by BXEDC, with an average loan amount of $72,000.
The success of the BBCL refocused the organization’s efforts toward the opportunity presented by the SBA’s 7(a) loan program. In June 2023, after an extensive review process, BICNY was awarded a license by the SBA as a participant in the 7(a) loan program. BXEDC’s SBA lending through BICNY is aligned with its founding mission of economic development in The Bronx’s LMI areas and has opened the door to significant growth in BICNY’s lending through access to the SBA 7(a) program’s secondary market, which will allow the $10MM in capital committed by BXEDC for 7(a) loans to be leveraged to some $50MM in lending activity.
BXEDC also works closely with the twelve Bronx Business Improvement Districts (BIDs). BXEDC provides and supports Bronx BIDs through technical assistance and by connecting BIDS with public and private programs. BXEDC works with Bronx BIDs to strengthen the business community in commercial corridors. For example, BXEDC is currently administering a $1 million storefront improvement project as part of a downtown revitalization initiative for the 161st BID.
BXEDC also collaborates with colleges and universities in The Bronx. After an extremely competitive selection process, BXEDC recently awarded $1 million to Bronx Community College for programs to make technology on campus more environmentally friendly through an initiative called the Green Action Challenge which was made possible through an award from the New York Power Authority. Capital access through loans and grants represents only one aspect of BXEDC’s economic development mission. BXEDC also engages in business education for small business owners and entrepreneurs in The Bronx. BXEDC staff actively engage clients to assist with business plan development, financial planning and projections, and loan readiness.