NYCEDC and Capital Business Credit Launch NYC Fashion Production Fund
April 14, 2014
$2 Million Fund Will Provide Below Market Rate Loans to Fund Production Cycles, Strengthening New York City as the Premier Destination for New Fashion Design Talent
Initiative Includes Mentorship Program with Established Fashion and Retail Executives
NEW YORK – April 14th, 2014 – New York City Economic Development Corporation (NYCEDC) and Capital Business Credit (CBC) today launched the NYC Fashion Production Fund, a program to assist emerging designers based in and producing in New York City. The Fashion Production Fund will fill a critical gap in the industry by providing production financing at below-market rates, supporting and growing emerging designer brands while incentivizing fashion manufacturing in the five boroughs. The public-private $2 million fund is initially 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 over the next four years. The Fashion Production Fund also includes mentorship opportunities with seasoned executives in the fashion industry, significantly strengthening the City’s status as the premier destination for new fashion talent.
“The fashion industry is an important economic driver in New York City that employs hundreds of thousands of people and creates billions of dollars in economic impact,” said Deputy Mayor for Housing and Economic Development Alicia Glen. “The Fashion Production Fund is another step we are taking to sharpen the competitive edge of New York City’s fashion industry by creating good quality jobs and supporting local designers and manufacturers across all five boroughs.”
“Fashion is not only one of New York City’s most iconic industries, but a job-creating sector that employs hundreds of thousands of people and creating billions of dollars in economic impact. This important financing initiative demonstrates how the City and the private sector can work in partnership to grow the local economy—supporting emerging designers, sustaining manufacturers and cementing the City as the best city in the world for design talent.”
“The Fashion Production Fund was created to cultivate the next generation of emerging designers and promote local production, as well as to attract new talent to one of the City’s legacy industries,” said NYCEDC president Kyle Kimball. “We are thrilled to work with Capital Business Credit to identify, build, and sustain the next generation of fashion businesses.”
“We see tremendous growth potential in the City’s young design talent,” said JoBeth Tananbaum, director of the New York City Fashion Production Fund. “Our partnership with the City showcases our commitment to designers to help build their brands and to the city and the long-term health of this iconic industry.”
Fashion is a $98 billion industry that employs more than 180,000 people in New York City, accounting for nearly 6 percent of the city’s workforce, paying $10.9 billion in wages, and generating nearly $2 billion in tax revenue annually. In addition, the City is home to one of the world’s largest wholesale fashion markets, which attracts more than 500,000 visitors a year to its trade shows, showrooms and retail stores. Of the thousands of designers based in the city, the Fund offers significant support to newer talents, who often encounter obstacles to affordable financing for production of their line. The fund seeks designers who have designed a minimum of three seasons since inception. Purchase order financing will be awarded in amounts ranging from $50,000 to $300,000 at below market rates, and with terms more flexible than traditional lenders. The Fund also includes a mentorship initiative that connects the designers with established fashion and retail executives to further provide support and guidance to the growth of their businesses.
The fashion industry garners more than $18 billion in retail sales, $72 billion in wholesale sales, and $8 billion in manufacturing sales annually. The city’s semi-annual Fashion Weeks draw approximately 232,000 attendees to more than 500 shows, creating a total economic impact of $865 million. The NYC Fashion Production Fund is one of a suite of city initiatives to sustain and grow the fashion industry, which also includes seed funding for the CFDA incubator, professional mentorship in design and fashion management, and networking and educational programs.
Fashion Production Fund applications are currently available. For applications and more information about the fund, please visit www.nycfashionproductionfund.com. You can also follow JoBeth Tananbaum on Twitter, @JoBethTananbaum or follow the fund on Instagram @nycfpf.
New York City Economic Development Corporation is the City’s primary vehicle for promoting economic growth in each of the five boroughs. NYCEDC’s mission is to stimulate growth through expansion and redevelopment programs that encourage investment, generate prosperity and strengthen the City’s competitive position. NYCEDC serves as an advocate to the business community by building relationships with companies that allow them to take advantage of New York City’s many opportunities. Find us on Facebook or follow us on Twitter, or visit our blog to learn more about NYCEDC projects and initiatives.
About Capital Business Credit
Established in 1988, Capital Business Credit LLC (www.capitalbusinesscredit.com) is a commercial finance company specializing in providing creative supply chain financing solutions. The Company’s service offerings include: full-service factoring; letters of credit; accounts receivable management services; inventory lending; asset-based lending; and international financing. Capital Business Credit is based in New York, with offices in Hong Kong; Shanghai, Los Angeles, CA, Charlotte, NC, and Ft. Lauderdale, Fla.