Under the reign of New York City’s billionaire Mayor Michael Bloomberg, the New York City Economic Development Corporation (NYCEDC) has issued millions of dollars in business development subsidies to beleaguered urban neighborhoods, meant to create new jobs and promote entrepreneurial spirit. Now the NYCEDC is teaming up with Wall Street to give loans to local food manufacturers, but activists who have examined the city’s development track record smell something fishy.
The NYCEDC’s new loan fund grew out of a partnership with Goldman Sachs, which is running a glossy nationwide campaign to pump seed money into small businesses in several cities. The initiative seems geared toward incubating foodie-friendly startups, conjuring up images of rooftop-grown honey and specialty cupcakes. No loans have been awarded yet, but the program’s eligibility criteria appears to target small- to medium-scale food manufacturers that have four to 100 workers and annual revenues between $150,000 and $7,000,000, and can demonstrate “difficulty obtaining credit from traditional sources.” The agency’s website spotlights honors for charismatic local entrepreneurs, like boutique kimchee and artisan bagel makers.
Community groups say they welcome efforts to foster small food businesses, but are wary that the program will offer more hype than real development for a city that’s hungry for good, steady jobs. Labor advocates who have been organizing in the local food sector know that many local producers, even if they’re smaller than industry behemoths like General Mills, are not necessarily much kinder to their employees. Read the rest of this entry →