Victor Salama, Executive Director, Greater Newark Enterprises Corporation

In an interview with Invest:, Victor Salama, executive director of GNEC, stated that the organization provides essential resources to underserved entrepreneurs, ensuring they remain operational and competitive. “Our mission remains laser-focused on supporting entrepreneurs who face systemic barriers,” said Salama.

How does GNEC’s work reflect and amplify Newark’s reputation as a small-business and startup hub?

We are always looking to ensure that Newark grows as an innovation hub, but I want to focus on another critical aspect. Every city that aims to innovate and expand, particularly in technology and artificial intelligence, must also support its main street businesses. These micro and small businesses are the lifeblood of New Jersey’s economy. While industries like pharmaceuticals receive significant attention and national press, it is the micro and small businesses that sustain and energize local communities.

At GNEC, our mission is to keep these businesses not only operational but also thriving. We provide essential services, including access to capital, which is often difficult for micro-entrepreneurs, especially those from underserved and underbanked communities. While we are not exclusively focused on innovation, we prioritize the foundational needs of micro and small businesses to keep Newark’s economy active.

It is worth noting that Newark’s average household income is approximately $40,000 or less. Supporting micro and small businesses is one of the most effective ways to increase income levels in the city. That is what we strive to do every day.

Taking a broader look at the economy, how have ongoing changes in the market impacted your organization, if at all? 

We serve a substantial number of Hispanic entrepreneurs and startups, and recent immigration policies have had a significant impact on this demographic. Many Hispanic business owners have reported a 10% to 15% drop in revenue due to decreased consumer spending and workforce uncertainties.

Over the past year, 57% of our loan clients identified as Hispanic, and 57% of those were female-owned businesses. These businesses operate in sectors like beauty salons, restaurants, catering, landscaping, and trucking, all of which have faced challenges. Beyond immigration concerns, rising costs and economic uncertainty have led to reduced spending, cooling Main Street activity.

Additionally, Newark’s role as a transportation hub has also been impacted. As the third-largest U.S. port for Chinese imports, after Los Angeles and Long Beach, Newark has felt the effects of tariff discussions, with fewer containers and ships arriving. This slowdown has hurt local transportation and logistics businesses, and we expect these challenges to persist for at least the next six to nine months.

However, despite these hurdles, we remain focused on supporting Main Street businesses, which have traditionally been underserved. Many of these entrepreneurs lack access to traditional financing, making our role at GNEC even more critical. Whether it’s a beauty salon struggling with fewer clients or a trucking company facing reduced shipments, we are working to provide the capital and resources needed to help these businesses survive and, ultimately, thrive again.

Community development financial institutions are vital local lenders. How does GNEC differentiate itself from traditional banks? 

Our key differentiator is that we exclusively serve individuals deemed “unbankable” by traditional financial institutions. These are entrepreneurs with low credit scores, high debt, or startups that are less than two years old. Banks often reject these applicants and refer them to us instead.

Unlike banks, we do not offer checking accounts, savings accounts, or lines of credit. We also avoid lending to businesses that qualify for traditional bank loans. Additionally, we typically decline tech-focused startups, such as those developing apps or AI solutions. Instead, we support tech-enabled businesses, that is, those using technology to enhance operations, like e-commerce stores. Our focus remains on those who have no other financing options, ensuring that Newark’s Main Street businesses continue to drive the local economy forward.

With the rise of fintech, how is GNEC integrating technology to modernize support services in areas such as coaching and credit tracking?

This is yet another part of our business. While we do the lending, and let me clarify that as a microlender, almost every one of our loans last year was under $30,000, so we are talking about small businesses, we also offer wraparound services. For example, if someone comes to us and their financials are not clear, we offer bookkeeping services. We provide a program where individuals receive 55 hours of instruction for only $300 for the full year, which is remarkably affordable.

Recently, I spoke with a young woman who is setting up a catering company but does not have a website. For $300, we have vendors who will create a website for her. If someone has poor personal credit, we enroll them in a credit coaching program. Additionally, we are now offering life insurance for every loan client. Once they close a loan, they will receive life insurance coverage for the policy amount of the loan for four years. Importantly, we are not the beneficiary; the individual’s family is.

We are also building packages around each client, including marketing and social media services. We are launching a six-month pilot program where clients receive professional social media marketing services at no cost to the client. Our goal is to wrap these services around each loan client so they do not feel alone. They know they are supported, and if they need additional assistance, they can come to us. If we cannot provide a specific service, we have a network of organizations in Newark and the surrounding areas that can help.

What are the main challenges your clients and Community Development Financial Institutions (CDFIs) are facing?

The challenges vary depending on the community. Nationally, CDFIs serve diverse populations. In Oklahoma, they may serve Native Americans, while in the South, they may focus on African-American communities. Here, we work with a mix of African-American and Hispanic clients. The challenges are often similar: lack of credit, insufficient income, and low-paying jobs. Building equity is difficult when earning $40,000 a year, which is close to the average household income in our area. For the Hispanic immigrant community we serve, many of whom are from Ecuador, Colombia, and Mexico, the barriers include limited connections, startup capital, and knowledge of local regulations. The African-American community faces different hurdles, such as a lack of generational wealth and high student debt, which is less common among our Hispanic clients.

These challenges are structural, rooted in historical inequities. New York was a wealthy city in the 1940s and 1950s, but the mass migration in the 1960s stunted growth in certain areas. Today, there is a stark divide between wealthy suburbs and underserved urban communities. We address this by providing low-interest capital and educational resources to bridge the gap.

Looking forward, what is your outlook for GNEC, and what are your top goals and priorities in the next two to three years?

We are in growth mode and will continue expanding despite federal policy challenges. We have established strong local partnerships, positioning us as a preferred lender for microbusinesses. Most companies do not operate in our niche, and we intend to deepen our presence within it rather than expand beyond it.

Over the next five years, you will see us grow statewide, particularly beyond our traditional service area in Greater Newark and Northern New Jersey. We may open additional offices in Southern New Jersey. Our goal is to ensure every client not only accesses affordable capital but also receives the support services they need to thrive.

Newark itself is undergoing significant changes, with increased construction and infrastructure projects. We aim to connect our clients with these opportunities so they can benefit from the region’s growth. Our mission remains laser-focused on supporting entrepreneurs who face systemic barriers. The demand for our services will always exist, and we are committed to meeting it.