ALBANY — New York State recently announced that its expanded $55.5 million Small Business Revolving Loan Fund 2 is available to provide shorter-term microloans and regular loans to address “inequitable” capital access “by bridging the financing gaps facing new companies, under-banked communities, and small businesses.” It’s part of New York’s broader Small Business Credit Initiative […]
ALBANY — New York State recently announced that its expanded $55.5 million Small Business Revolving Loan Fund 2 is available to provide shorter-term microloans and regular loans to address “inequitable” capital access “by bridging the financing gaps facing new companies, under-banked communities, and small businesses.”
It’s part of New York’s broader Small Business Credit Initiative efforts led by Empire State Development, the office of Gov. Kathy Hochul said in an Aug. 7 news release.
This expanded program will leverage financial-loan capital to help generate economic activity by expanding access to short-term loan capital for small, micro and “socially and economically disadvantaged,” individual-owned businesses that have faced “historical barriers” to obtaining credit or adequate loan terms, Hochul’s office said.
The first round of the Small Business Revolving Loan Fund was launched in 2010.
“Ninety-eight percent of New York’s businesses have fewer than 100 employees and are a key driver of our economic growth,” Hochul said. “The Small Business Revolving Loan Fund 2 will bolster these small businesses, especially our minority and women entrepreneurs, and help build the economy of the future.”
“When our small businesses succeed, our communities succeed,” Hope Knight, president, CEO, and commissioner of Empire State Development said in the release. “The Small Business Revolving Loan Fund 2 will support our small businesses by providing capital to help businesses thrive, create jobs and grow New York’s economy, now and for the future.”
Small businesses may apply for lending through a participating community development financial institution (CDFI). Program lenders use the capital from the program, along with matching capital from other resources to further enhance available funding for small businesses.
Typical uses of funds are working capital; acquisition and/or improvement of real property; acquisition of machinery and equipment; and, in some cases, refinancing of debt obligations.
Microloans (loans between $500 and $25,000); and regular loans (typically as large as $250,000 or more depending upon the lender) are available with terms based upon each lender’s individual offerings.
Program lenders are the primary point of contact for borrowers, and each have their own loan-application process and loan products. Competitive interest rates, terms, and fees are determined by the individual program lenders, who are also responsible for applications and credit decisions, Hochul’s office said.
Participating lenders
Participating lenders for this program include Syracuse Cooperative Federal Credit Union with a service area that includes Cayuga, Cortland, Madison, Onondaga, and Oswego counties.
Another lender is Adirondack Economic Development Corporation. Its service area covers Essex, Franklin, Hamilton, Jefferson, Lewis, St. Lawrence, Fulton, Herkimer, Oneida, Oswego, Saratoga, Warren, and Washington counties.
Finally, two other lenders include NYBDC (dba Pursuit Lending) and NYBDC Local Development Corporation (dba Pursuit Lending), both of which serve all New York counties, per Hochul’s office.
