Governor David A. Paterson today announced the creation of a $50 million Small Business Revolving Loan Fund to provide capital to minority and women-owned enterprises and other entrepreneurs that are having difficulty accessing regular credit markets. The fund, which is supported by $25 million in State funds, will leverage $25 million in private matching funds from selected lending institutions. Governor Paterson proposed the creation of such a fund in his 2010 State of the State address and included funding for it in his 2010-11 Executive Budget.
"Over the course of the past two years, I have worked to expand opportunities for small businesses, to double alternative lending resources for entrepreneurs and increase the participation of minority and women-owned business in government contracting," Governor Paterson said. "The Small Business Revolving Loan Fund is a culmination of those efforts and a result of the work of the Small Business Task Force, which I created last summer to develop new strategies and introduce new resources to promote the growth and development of small businesses in New York. A more diverse and competitive business climate will mean more jobs and more money in the pockets of hardworking New Yorkers."
Empire State Development Chairman and CEO Dennis M. Mullen said: "At the heart of our State's economy are small businesses. All across New York – from Buffalo to New York City – small firms supply their local area with vitally needed goods and services. This fund is targeted towards those everyday businesses that are having trouble in our current economy. The Small Business Revolving Loan Fund will provide small businesses with access to fair and affordable capital. With the announcement of this fund, along with New York State's technical assistance and other small business development support, we are better poised to strengthen our economy. I commend Governor Paterson and my fellow Task Force members; this is a true triumph for small business in New York."
The Small Business Revolving Loan Fund will be targeted to main street everyday businesses throughout the State – mom and pop businesses, retail, service and manufacturing businesses. In addition, new startup businesses may also be eligible if they meet certain conditions, such as having a credible business plan, collateral and a track record of other business success.
In July 2009, in an effort to develop new strategies to promote the growth and development of small businesses in New York, Governor Paterson created the Small Business Task Force. Taking the first steps towards assisting businesses in the State, the Task Force created two free online manuals aimed at connecting small business owners and entrepreneurs to important resources. The New York State Directory of Small Business Programs is an interactive online directory of State business resources and the New York State Small Business Lending Guide is a free online manual geared towards connecting small business owners and entrepreneurs with alternative banks and credit unions that are currently lending. Both manuals are available at: http://www.esd.ny.gov/SmallBusiness.
In December 2009, the Governor's Small Business Task Force submitted its Final Report to the Governor. The report included proposals to address increasing access to capital; reducing red tape and providing regulatory reform; strengthening and enhancing training and technical assistance for business owners, employees and aspiring entrepreneurs; and improving access to, and awareness of, available State resources. Since then, New York State has either completed or made substantial progress on more than half of the Task Force's recommendations.
Program loans may be used for working capital, acquisition and or improvement of real property, the acquisition of machinery and equipment, or the refinancing of debt obligations. A small business is defined as resident in New York State, independently owned and operated, not dominant in its field, and with one hundred or fewer employees.
For more information on the State's Small Business Division and its programs, please visit: http://www.esd.ny.gov/SmallBusiness.