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New York Business Funding: Loans, Crowdfunding and Investors

By Spodek Law Group | February 20, 2024

New York Business Funding: Loans, Crowdfunding and Investors

Starting or growing a business in New York can be an exciting endeavor, but it also requires capital. Whether you need funding to launch your startup or expand your existing company, there are several options to consider from loans to crowdfunding platforms to angel investors. This article provides an overview of the most popular funding sources for New York businesses along with tips for securing the financing you need.


Loans allow you to borrow money that you repay over time with interest. There are many types of business loans available in New York including:

SBA Loans

The Small Business Administration (SBA) guarantees loans made by lenders to qualifying small businesses. The most popular SBA loans are 7(a) loans that can be used for various business purposes and 504 loans for purchasing real estate or equipment. SBA loans offer longer repayment terms, lower down payments, and sometimes lower interest rates than conventional bank loans.

Bank/Credit Union Loans

Banks and credit unions offer small business loans and lines of credit. To qualify, you’ll need good personal and business credit along with sufficient operating history. Interest rates and terms vary greatly between lenders. Local community banks and credit unions may offer more flexibility than large national banks.

Online Lenders

A newer option is online business loans from alternative and marketplace lenders. These loans are faster and easier to apply for than bank loans, but often have higher rates and aggressive repayment terms. They are best for small loan amounts or applicants with damaged credit.


For very small loan amounts under $50k, nonprofit lenders offer microloans in New York. These loans support low-income entrepreneurs and require business training.

Invoice Financing

Business owners can get immediate funding by borrowing against unpaid customer invoices. There are a few invoice financing options in New York including invoice factoring and invoice discounting from specialty finance companies.


Crowdfunding platforms like Kickstarter and Indiegogo allow entrepreneurs to raise small amounts of capital from a large number of people. This new method of fundraising gained popularity with the passage of the JOBS Act in 2012. Here are some top crowdfunding platforms for New York businesses:


The leading reward-based platform for creative projects. Companies offer rewards to backers but do not give up equity. Over $5 billion has been pledged to Kickstarter campaigns.


flexible platform supporting both rewards and equity campaigns. Features a large, global audience. Known for hosting innovative technology products.


An equity crowdfunding leader that has helped over 450 startups raise over $155 million on its platform since 2016. Provides access to early-stage startup investments.


FINRA approved funding portal for equity crowdfunding. Hosts Regulation CF offerings in technology, consumer products, and other high-growth sectors.

Angel Investors

Wealthy individuals provide startup capital to early-stage companies in exchange for equity or convertible debt. New York has an extensive angel investor community. Here are some resources:

New York Angels

leading angel group making seed and early-stage investments in high-growth ventures across industries like fintech, enterprise software, and life sciences.

Golden Seeds

This nationwide organization has many members in New York. It focuses on backing women-led startups with investment rounds averaging $1 million.


An angel group focused on healthcare innovations based in New York. Its members have invested over $7 million in companies reinventing healthcare.

Tips for Securing Funding

With many options to choose from, here are tips on obtaining loans or investment capital for your New York business:

  • Seek financing only after developing a solid business plan and financial projections. These documents are essential.
  • Have a firm understanding of your personal and business credit. Lenders will thoroughly review your creditworthiness.
  • Consider hiring an accountant or financial advisor to help forecast expenses, assemble paperwork, and guide negotiations.
  • Be ready to thoroughly explain your product/service, customers, competition, operations, and growth strategy. Practice your investor pitch.
  • Apply to multiple lenders and investors to increase odds of approval. Comparison shop rates and terms.
  • Negotiate aggressively to get the best deal possible before accepting funding.

Access to capital remains a major challenge for many small businesses. However, New York offers a wealth of funding sources suitable for every type and stage of company. Conduct thorough research to determine the best lending, crowdfunding, or investment partners to meet your financing needs, enable growth, and ensure business success.





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