The federal government has awarded New York State just over $500 million in funding to support small businesses through the State Small Business Credit Initiative (SSBCI).
SSBCI was reauthorized and expanded as part of the American Rescue Plan Act (ARPA), the offices of U.S. Senate Majority Leader Charles Schumer (D–N.Y.) and Gov. Kathy Hochul announced Friday.
Managed by the U.S. Department of Treasury, SSBCI provides funds to support programs for small businesses. SSBCI places an emphasis on those still struggling from the economic impact of the COVID-19 pandemic and helping “traditionally disadvantaged” small businesses succeed in the post-pandemic economy, Hochul’s office said.
Through Empire State Development (ESD), New York State is establishing a suite of programs that will match federal support to the critical needs of the state’s small businesses. This programming includes a mix of new initiatives and the expansion of existing programs, focusing on capital access, loan guarantees, loan-participation programs, collateral support, venture capital for fund managers and startups, and technical assistance.
Proposed programs include ones targeting capital access, affordable debt (loan programs), and equitable-venture investments.
Over the next 90 days, ESD plans to establish additional program criteria and guidelines, with formal program-specific application processes announced in the Fall.
“This historic $500 million federal investment is the shot in the arm New York’s small businesses need to recover from the pandemic and rebuild our local economies,” Schumer said. “This federal assistance will help support underserved businesses, invest in entrepreneurs and small businesses in key industries like manufacturing and clean energy to address the nation’s supply chain challenges, and create good-paying jobs in the communities that need them most.”