Hanover and Pursuit partnership reaches $2M in small business loans | Long Island Business News

A small-business lending partnership between Hanover Bank and Pursuit, a community development financial institute, has just reached $2 million in loans. 

The partnership, which began as a fledgling pilot program in 2022, has recently expanded and has since funded loans for 38 small business borrowers. 

As a CDFI, Pursuit is a community-focused lender supported by the U.S. Department of Treasury’s CDFI Fund, which provides financing from $10,000 and up with affordable rates and terms through specialized loan programs, mostly to small business owners who have had trouble finding traditional sources of financing. 

However, because CDFIs do not have the same operational resources and structure as traditional banks, many can only offer variations on lines of credit without on-demand draws, online banking or other features. With the partnership between Hanover and Pursuit, business owners can use Hanover’s online banking platform where they can draw funds on demand and make payments. 

The partnership creates a new model for how CDFIs and banks can work together to serve more customers facing credit challenges, according to a joint statement from Hanover and Pursuit. 

“Hanover Bank has made this possible for us,” Steve Cohen, president of Pursuit Community Finance, said in the statement. “I’m thrilled that our partnership has given our team another tool to reach underserved entrepreneurs and offer affordable financing to build their credit, strengthen their businesses and prepare them for future financing opportunities.” 

Pursuit and Hanover Bank are actively accepting applications. The program offers lines up to $100,000 with a 9.9% interest rate and a term of 12 months. Approval decisions are sent within two days, and once approved, lines are funded within one to three weeks. 

“Small businesses are the engines of economic prosperity and job creation across America, but many business owners have limited access to credit, impeding their ability to succeed,” Mac Wilcox, president of Hanover Bank, said in the statement. “With our line of credit solution, Hanover Bank and Pursuit are empowering underbanked entrepreneurs with the working capital they need to thrive, bringing new opportunities for community economic development.” 

Albany, N.Y.-based Pursuit lends to businesses in Connecticut, New Jersey, New York and Pennsylvania. Mineola-based Hanover Bank is a commercial community bank with branches in Garden City Park, Hauppauge, Queens, Brooklyn, Manhattan and Freehold, N.J. 

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