Congressman Charlie Rangel (D-Harlem) joined local and city community leaders to announce the launch of a new microloan fund for upper Manhattan entrepreneurs on Thursday.

The fund, created through a partnership between ACCION-the largest microlender in the U.S.-the Upper Manhattan Empowerment Zone Development Corporation (UMEZ), and several national banks, will provide $5.5 million for business in the upper Manhattan area and will be the largest dedicated loan fund of its kind in state history, according to a press release.

"You don't just get access to the money, you get access to the techniques," Rangel said of the new collaboration in his address to assembled local community leaders, representatives from UMEZ, ACCION, and various financial institutions.

However, the new partnership aims to provide its loan clients with more than just financial support. ACCION clients can also take advantage of OnTRAC, ACCION's Training, Resource and Advising Center, which offers entrepreneurs personalized training in finance and credit management.

"Our main goal is to get capital and technical assistance to the community, and partnering with ACCION is the best way to benefit the community," Kenneth Knuckles, President and CEO of UMEZ, said in an interview.

The new partnership aims to replicate the success of previous ACCION microlending programs, which have enjoyed a 93 percent repayment rate. As of Dec. 31, 2006, ACCION has lent in excess of $65 million to clients, 92 percent of whom are racial minorities, and 40 percent of whom are women.

Ralph Bumbaca of Banco Popular-which contributed 25 percent of the initial capital on the project-mentioned how the practice of microlending is not unusual for his bank. "Fostering community relations is a national goal for us," he said in an interview.

Other sources of capital included JP Morgan Chase, TD Bank USA, and two donations from UMEZ-one grant of $1 million, and one loan of $500,000. The capital is expected to last through 2009, and will be offered to small businesses in the form of subsidized loans ranging from $500 to $50,000, all of which will charge reduced interest rates.

"Access to affordable credit is vital," said Diana Taylor, superintendent of banks for the state of New York, in her address to the crowd.

Commissioner of New York City Department of Small Business Services Robert Walsh agreed, "These businesses need access to this capital. I know all of you [the banks] care about upper Manhattan."