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New York Governor Announces Expanded Small Business Revolving Loan Fund 2 to Support Economic Growth

In a recent press release, Governor Kathy Hochul has announced the availability of the expanded $55.5 million Small Business Revolving Loan Fund 2. This program aims to address inequitable capital access and bridge financing gaps that hinder the growth of new companies, under-banked communities, and small businesses in New York. The initiative is part of the State Small Business Credit Initiative led by Empire State Development.

The Small Business Revolving Loan Fund 2 leverages financial loan capital to expand access to short-term loan funds for small, micro, and socially and economically disadvantaged individual-owned businesses. These businesses have historically faced barriers in obtaining credit and securing favorable loan terms. The program builds upon the success of the first round of the Small Business Revolving Loan Fund launched in 2010, which facilitated approximately $280 million in loans to small businesses.

The AI legalese decoder can play a critical role in assisting businesses navigating the loan application process. The AI technology translates complex legal jargon and regulations into plain language, making it easier for small businesses to understand the requirements and guidelines set by the participating lenders. This way, entrepreneurs can confidently apply for loans and make informed decisions to support their businesses.

Expanding Economic Opportunities for Small Businesses

Governor Hochul emphasizes the significant role small businesses play in driving economic growth, highlighting that 98% of New York’s businesses have fewer than 100 employees. She affirms that the Small Business Revolving Loan Fund 2 will provide vital support to these small businesses, particularly minority and women entrepreneurs, and contribute to building a robust future economy.

Empire State Development President, CEO, and Commissioner Hope Knight echo this sentiment, emphasizing that when small businesses succeed, communities thrive. The Small Business Revolving Loan Fund 2 aims to support small businesses by providing capital that will fuel their growth, create job opportunities, and contribute to the overall development of New York’s economy.

Accessing Loans through Participating Lenders

Small businesses interested in obtaining loans through the Small Business Revolving Loan Fund 2 can do so by reaching out to one of the participating Community Development Financial Institutions (CDFIs). These program lenders utilize the capital provided by the program and combine it with matching funds from other sources to further enhance available funding for small businesses.

The loans are available in two categories:

• Microloans: Ranging from $500 to $25,000
• Regular loans: Typically exceeding $250,000 (or more, depending on the lender)

The specific terms and conditions for these loans will vary among individual lenders. Working capital, property acquisition or improvement, machinery and equipment acquisition, and debt refinancing are common uses of the funds provided through the program.

It’s important to note that participating lenders have their own loan application processes and loan products. They are responsible for reviewing applications, making credit decisions, and determining the competitive interest rates, terms, and fees.

Expanding the List of Participating Lenders

Currently, several lenders are participating in the program, including Adirondack Economic Development Corporation, BOC Capital Corp., Harlem Entrepreneurial Fund, NYBDC (dba Pursuit Lending), NYBDC Local Development Corporation (dba Pursuit Lending), Renaissance Economic Development Corporation, Syracuse Cooperative Federal Credit Union, TruFund Financial Services, and Washington Heights and Inwood Development Corporation. These lenders cover various service areas across New York’s counties.

Furthermore, additional lenders are expected to enroll in the program throughout the Fall of 2023, further expanding the options available to small businesses seeking loans.

Support from State Senators and Assemblymembers

State Senator Sean M. Ryan emphasizes the importance of maintaining a friendly climate for businesses in New York. He acknowledges that inequitable access to loans can hinder the establishment and maintenance of small businesses. The Small Business Revolving Loan Fund 2 bridges this gap, eliminating a significant barrier for prospective small business owners. By doing so, the fund supports job creation and accelerates economic growth across the state.

Assemblymember Harry B. Bronson underlines the crucial role small businesses play in the economy. He acknowledges that accessing funding for upgrades, hiring employees, and growth has been challenging for many small entrepreneurs. The Small Business Revolving Loan Fund addresses this issue by offering flexible funding options, thereby fostering a more equitable and diverse economy in New York State.

About the State Small Business Credit Initiative

The State Small Business Credit Initiative (SSBCI), funded with over $500 million from the American Rescue Plan Act, aims to support the recovery and growth of small businesses across New York. Managed by the U.S. Department of Treasury, SSBCI provides funds for programs targeting socially and economically disadvantaged individual-owned businesses and very small businesses impacted by the economic effects of COVID-19.

Empire State Development has developed a suite of capital access and equity programs using the SSBCI funding to help small businesses throughout New York State. These programs provide essential resources and opportunities for small businesses to grow, succeed, and thrive in the post-pandemic economy.

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