The New York City Economic Development Corporation (NYCEDC)’s Strategic Investment Group (SIG) manages financing and tax incentive programs for businesses. SIG requested consulting support from SIPA as it develops new loan and equity funds within New York. The team researched public-private partnerships and fund models utilized at the municipal and state level nationwide. It developed programmatic recommendations regarding financial models, social impact indicators, loan funds, and equity funds.
While researching the project, the team conducted a literature review and interviewed experts with experience in consulting, city government, small business contracting, and public private partnerships. The Capstone group recommended prospective loan and equity funds to SIG, along with a series of social impact indicators. The team recommended SIG increase its proportion of revolving loan funds, consider ways to reach social impact investors, and increase its financing of the healthcare, life sciences, and tech sectors. Within the healthcare sector, it recommended funding digital healthcare innovations that improve home health care, to support aging in place and to lower medical costs associated with hospitalization and nursing homes. The team recommended NYCEDC utilize a single set of social impact indicators, to produce comparable metrics across projects. It showed the indicators used by leading organizations, and how they could be applied at NYCEDC.