New York receives $501 million from the federal government for small business programs | New York
(The Center Square) – Small businesses in New York are in line for a little more relief.
Governor Kathy Hochul announced that the federal government has approved the state to receive $501.5 million through the state’s Small Business Credit Initiative. The federal funding program was reauthorized and expanded last year when Congress passed the American Rescue Plan Act.
Hochul said the state will leverage those dollars with about $500 million in public funds in the current budget to fund several small business programs. This includes loans and new venture capital funding.
Much of that money will go to businesses still recovering from the COVID-19 pandemic, she said.
“Everyone knows no state has been hit harder during the pandemic than New York State, especially New York City, but we’re a very diverse state,” Hochul said. “A lot of people think New York is just the skyscrapers of Manhattan, when in fact we have a very rural area as well.”
The US Treasury Department approved funding plans submitted by New York along with Colorado, Montana and Oregon last week.
Treasury Secretary Janet Yellen said the federal money will increase access to funding for communities that have been underserved in the past.
According to the governor’s office, 96% of all small businesses will be eligible to apply for at least one of the programs created or expanded by the funding. Disadvantaged businesses, such as women-owned or minority-owned businesses, will be eligible for more than $106 million in loan funding for equity investments. Another $55.5 million will go to new businesses in communities that may not have access to banks or other financial institutions.
Additionally, nearly $210 million of federal funding will go to venture capital programs to help start-ups and emerging businesses.
Empire State Development, New York State’s economic development agency, will set criteria for each program and announce application procedures and deadlines in the fall.
“SSBCI’s funding will go a long way to helping these companies, especially those facing historical disadvantages, such as MWBEs,” said ESD President, CEO and Commissioner Hope Knight. “Through a combination of programs designed with business needs in mind, ESD will ensure that this essential support reaches those who deserve it most.”