Addressing the credit crisis in East Harlem
Clients East Harlem Business Capital Corporation
Since June of this year, Jones Day has been acting as pro bono legal counsel to East Harlem Business Capital Corporation (EHBCC), a New York not-for-profit corporation, whose primary mission is to support and promote the commercial and economic development of the East Harlem section of New York City, also known as "El Barrio". To achieve these goals, EHBCC is involved in several lending and advertising projects and offers a number of business management and education services to local community members. Jones Day regularly represents EHBCC in providing direct microloans to local businesses and entrepreneurs.
The microloan program provides local businesses with access to credit in amounts as small as $500 to loans up to $50,000. These loans are secured by the assets of the applicable business, and, where appropriate, by personal guarantees from the owners of the business. Since becoming a firm client, Jones Day's Banking and Finance group has represented EHBCC in documenting the funding and refinancing of loans for an entertainment company, a Laundromat, a pastry shop and a barber shop. Several other financings and re-financings are currently in process.