cannabis nyc loan fund

Description New York City Economic Development Corporation (“NYCEDC”) is issuing a Request for Proposals (“RFP"), to launch the Cannabis NYC Loan Fund (“Loan Fund”), a loan fund which will promote the development of an equitable cannabis industry in New York City.The goal of the Loan Fund is to provide flexible capital at below-market rates to cannabis businesses that are run by Social and Economic Equity Applicants (“SEAs”) 1 who have been awarded licenses to operate in New York City. NYCEDC will commit up to $8 million of subordinated loan capital at a 0% interest rate, with the intention of attracting private capital to leverage fund size and impact, while bringing down overall interest rates for Loan Fund borrowers. Loans will be coupled with technical assistance to increase the likelihood of borrower success and to mitigate the risk of default.NYCEDC is seeking respondents to this RFP to participate in at least one or at most two roles related to the Loan Fund: capital partners

and a fund administrator. Capital partners will be primarily responsible for providing loan capital to the Loan Fund, in addition to the subordinated loan capital provided by NYCEDC. The fund administrator will be primarily responsible for the day-to-day operations of the Loan Fund, including but not limited to sourcing and underwriting potential borrowers, structuring loans, deal execution, as well as ongoing servicing and management of loans.NYCEDC plans to select capital partners and a fund administrator based on a series of selection criteria stated in the RFP.For the capital partners, the criteria on which NYCEDC will base its selection includes, but is not limited to, respondent’s understanding of the cannabis industry; the qualifications, reputation, and financial health of the respondent; proposed financial terms; and the respondent’s relevant experience.For the fund administrator, the criteria on which NYCEDC will base its selection includes, but is not limited to, the qualifications, reputation, and financial health of the respondent; program design; cannabis industry understanding; and proposed fees.Subject to the quality of the proposals, NYCEDC expects to enter into one or multiple agreements with capital partners and one agreement with a fund administrator.It is the policy of NYCEDC to comply with all federal, state and New York City laws and regulations which prohibit unlawful discrimination because of race, creed, color, national origin, sex, age, disability, marital status, and other protected categories and to take affirmative action in working with contracting parties to ensure certified Minority and Women-owned Business Enterprises (MWBEs) share in the economic opportunities generated by NYCEDC’s projects and initiatives.Companies who have been certified with the New York City Department of Small Business Services as M/WBEs are strongly encouraged to respond. To learn more about M/WBE certification and NYCEDC’s M/WBE program, please visit http://edc.nyc/opportunity-mwdbe.An optional informational session will be held on Thursday, August 3, 2023 at 11:00 A.M. at NYCEDC at One Liberty Plaza, 14th Floor, New York, NY 10006 and virtually via Zoom. Those who wish to attend should RSVP by email to CannabisNYCLoanFund@edc.nyc on or before August 1, 2023. RSVPs should specify if attendance will be in-person or virtual. We will follow up with meeting details and a Zoom link after attendee RSVP.Respondents may submit questions and/or request clarifications from NYCEDC no later than 5pm on Thursday, August 10, 2023. Questions regarding the subject matter of the RFP should be directed to CannabisNYCLoanFund@edc.nyc. Answers to all questions will be posted by Tuesday, August 22, 2023, to https://edc.nyc/rfps. Questions regarding the subject matter of the RFP will not be accepted after 5pm on Thursday, August 10, 2023, however, technical questions pertaining to downloading and submitting proposals to the RFP may be directed to RFPRequest@edc.nyc on or before Thursday, September 7, 2023.Detailed submission guidelines and requirements are outlined in the RFP, available as of Monday, July 17, 2023. To download a copy of the RFP, please visit https://edc.nyc/rfps. RESPONSES ARE DUE NO LATER THAN Thursday, September 7, 2023. Please click the link in the “Deadlines” section of this project’s web page (which can be found on https://edc.nyc/rfps) to electronically upload a proposal for this solicitation.1 As defined by NY State’s Marijuana Regulation and Taxation Act and the regulations thereto, which define SEAs as those from communities disproportionately impacted by cannabis prohibition, minority-owned businesses, women-owned businesses, distressed farmers, or service-disabled veterans. Request Address Contact Information: Cannabis NYC Loan Fund Team phone: (212) 312-1236 email: CannabisNYCLoanFund@edc.nyc Attachments: Other Information: