The New York City Economic Development Corporation and Capital Business Credit have come together to help support emerging fashion designers.
The two companies have joined forces to launch the New York City Fashion Production Fund, which is a $2 million public-private fund that will provide financing to up-and-coming New York City-based designers for production at below-market rates, WWD reported. This fund was launched with the hopes that it will bolster manufacturing in New York City's five boroughs.
"The Fashion Production Fund was created to cultivate the next generation of emerging designers and promote manufacturing here in New York City, as well as to attract new talent - all of which will reaffirm New York City as the leading global destination for the fashion industry," NYCEDC president Kyle Kimball told WWD.
According to JoBeth Tananbaum, the director of this fund, five to 10 designers will benefit from the first round of financing. Loans will range from $50,000 to $300,000, and recipients will have between 60 and 120 days to repay them. Within four years, it is expected that the New York City Fashion Production Fund will issue as much as $32 million in financing.
"The goal is to help as many designers as possible. 'The more the merrier' is how we look at it," Tananbaum said.
Eventually, the Fashion Production Fund plans to match emerging designers who receive a loan with established industry executives, who will act as mentors to the young talents.
In order to receive funding, designers must be based in New York City, have produced a collection for a minimum of three seasons, manufacture the majority of their product in New York City, and have purchase order receipts from confirmed customers. To apply, designers seeking funding must fill out an online questionnaire.
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