NYC To Provide Loans, Benefits To Struggling Nonprofits

New York City Mayor Michael Bloomberg has announced new initiatives to help the city's 40,000 cultural, health and social service nonprofit organizations survive the economic crisis.

"Almost half a million New Yorkers who make up our nonprofit workforce contribute profoundly to the heartbeat of our city by helping residents across the five boroughs - particularly during these trying times," said Mayor Bloomberg. "Whether by training people for jobs, providing access to arts and culture or building affordable housing, the nonprofit sector is a vital part of the City and our economy. As nonprofits face increasing challenges due to the economic downturn, it's critical that the City take concrete steps to strengthen the sector and help it thrive."

The new program will allow the City to reduce nonprofit organizations' fixed costs, expand loan programs, enhance the responsiveness and efficiency of City contracting procedures to speed payments, and build new partnerships to help foster stronger nonprofits.

The program would enable organizations to save money by group purchasing insurance, information technology and other goods and services. A city-run loan program for nonprofits will be expanded to $20 million from its current $8 million, Bloomberg said. Nonprofits employ more than 490,000 people, more than 15 percent of the city's non-government workforce, the mayor said.

City officials intend to offer nonprofits energy audits so they can reduce the costs of heating, cooling and lighting their offices, and streamlined contracting rules to make it easier for them to do business with the city, the mayor said.

To read the complete release from the Mayor's office, click here.