Governor Kathy Hochul today announced that New York State has received $501.5 million in federal funds under the state’s reauthorized and expanded Small Business Credit Initiative. under the American Rescue Plan Act. Administered by the U.S. Department of the Treasury, SSBCI provides funding to support programs for small businesses, with a focus on those still struggling with the economic impact of the COVID-19 pandemic, and helping small businesses traditionally disadvantaged to succeed in the post-pandemic economy.
“Small businesses are the backbone of our economy, and far too many small business owners are still feeling the economic toll of the pandemic,” Governor Hochul said. “This historic funding will be a game-changer – serving as a crucial lifeline for small businesses, fueling innovative growth, and helping uplift New Yorks most vulnerable communities. I thank President Biden, Secretary Yellen, Senator Schumer, Senator Gillibrand and the Democrats in the New York Congressional Delegation for their leadership on the US bailout and look forward to continuing to work together as we move the Empire State’s economy forward. »
Treasury Secretary Janet L. Yellen said: “This is a historic investment in entrepreneurship, small business growth and innovation through the US bailout that will help reduce barriers to accessing capital for traditionally underserved communities. I am excited to see how the SSBCI funds will promote equitable economic growth in New York and across the country.”
US Senate Majority Leader Charles E. Schumer said: “This historic $500 million federal investment is the boost small businesses in New York City need to recover from the pandemic and rebuild our local economies. This federal assistance will help support underserved businesses, investing in entrepreneurs and small businesses in key sectors like manufacturing and clean energy to address the country’s supply chain challenges and create well-paying jobs in the communities that need them most. of the majority, I fought for federal investment from the State’s Small Business Credit Initiative as part of the U.S. bailout to address the unprecedented challenges facing small businesses across the country during the pandemic and I’m proud to now provide this federal funding to New York to strengthen small businesses and the manufacturing base government to accelerate our recovery and propel our economy into the future. »
Senator Kirsten Gillibrand said: “I am so proud to have helped secure this historic federal funding for SSBCI as part of the U.S. bailout. This funding will provide critical resources and increase access to capital for our state’s small business owners. Fighting for New York’s small businesses means fighting for a bright future and economic prosperity for our state.”
Representative Carolyn Maloney said: “Small businesses are the lifeblood of New York City, but unfortunately they have borne the brunt of the COVID-19 crisis. I am thrilled Congress was able to implement the US bailout, which has helped so many struggling individuals and small businesses throughout the City and State Today, this is a critical step in getting ARP funding into the pockets of those who need it most need as the White House officially approves New York State’s $501 million small business financing plan under the American Rescue’s Plan Small Business Credit Initiative (SSBCI). I commend Governor Hochul for working quickly with the President so that our small businesses in need can keep their doors open.”
Representative Gregory Meeks said: “Small businesses are the backbone of our economy. Governor Hochul’s planned use of U.S. SSBCI bailout funds recognizes the critical role that small businesses play in the economic development of their communities in the post-economy. -pandemic. This will provide the necessary resources and support, particularly for minorities and women, to overcome the structural and institutional challenges to their continued growth.”
Empire State Development President, CEO and Commissioner Hope Knight said: “New York City has been among the hardest hit by the devastating effects of COVID-19, and many small businesses in our state are still trying to recover. SSBCI funding will go a long way in helping these businesses, especially those facing historical disadvantages, such as MWBE. Through a combination of programs designed with business needs in mind, ESD will ensure that this essential support reaches those who deserve it most.”
Through Empire State Development, New York State is implementing a series of programs that will match federal support with the critical needs of small businesses in the state. This programming includes a mix of new initiatives and the expansion of existing programs, focusing on access to capital, loan guarantees, loan participation programs, collateral support, risk capital for funds and start-ups, and technical assistance. Programs offered include:
Capital Access Program:
- $29.4 million Capital Access Program (expansion of existing program) – These programs provide portfolio insurance to lenders who make loans to small businesses to encourage the expansion of loans to these entities.
Affordable Debt Programs:
- $106.1 million capital loan fund (new program) – Provides long-term capital investments through debt instruments and credit structures. Eligible uses of these capital loans are very flexible, with an emphasis on providing capital support to socially and economically disadvantaged businesses.
- $55.5 million Small Business Revolving Loan Fund (expands existing program) – This fund will address inequitable access to capital, to address the gaps faced by new businesses, under-banked communities, small businesses that are more likely to be minority owned.
- $47M New York Term Loan Fund (extension of existing program) – An investor-pooled capital-funded lending program to provide flexible, low-interest loans to small businesses and non-profit organizations through participating development finance institution lenders community (CDFI).
- $22 million bond guarantee program (extension of existing program) – Provides bonding to reduce the risks associated with bonding for small businesses.
- $22M Entrepreneur Financing Revolving Loan Fund (New Program) – Provides necessary financing to contractors who need matching funds to secure federal, state and local contracts.
Equitable Venture investments:
- $102 million fund for emerging and regional partner programs (new program) – This program will support the growth and establishment of diverse, emerging and regional private sector fund managers.
- $52 Million Community and Regional Partnership Program Fund (New Program) – ESD will provide selected accelerators with funds that will be leveraged with private dollars to invest in New York State startups.
- $30M Pre-Seed and Seed Matching Funds Program (New Program) – ESD will work with angel groups and seed investors across New York State to continue to support high-growth startups in the early stages of their growth and development.
- $35M New York State Innovation Venture Fund (extension of existing program) – Since 2015, ESD has managed the New York Ventures fund, an investment program with more than 40 portfolio companies, 65% of which are founded or led by women and/or minorities. SSBCI funds would further capitalize this direct investment fund program.
Over the next 90 days, Empire State Development will establish additional criteria and guidelines for the program, with formal program-specific application processes announced in the fall.
For more information, please visit esd.ny.gov/ssbci.