$3.8M AWARDED TO HELP MINORITY- AND WOMEN-OWNED SMALL BUSINESS
Governor David A. Paterson today announced the award of $3.8 million to Community Development Financial Institutions (CDFIs) in New York, which serve the small business community. Allocated through Empire State Development (ESD), the funds will lead to improved access to capital for small businesses and Minority- and Women-Owned Business Enterprises (MWBEs).
Today’s announcement is a direct result of the Governor’s recent efforts to develop new strategies – including the creation of a Small Business Task Force in July – to address the concerns of small business in New York and to promote their growth and development.
“One of the first steps on the path to recovery in New York State – and the entire country – is to open up access to capital,” Governor Paterson said. “The funds announced today will allow dozens of entrepreneurs and small businesses in New York State to receive the start-up and development money that is so vital to their success. I would like to thank my Small Business Task Force and Empire State Development for their work toward fulfilling the needs of our State’s small business community.”
ESD Chair & CEO designate Dennis M. Mullen said: “These funds will help provide continued technical and financial assistance to ensure the health and vitality of small businesses, and half will be directly targeted to women and minority owned businesses. As a member of the Governor’s Small Business Task Force, Empire State Development continues its aggressive efforts to help small businesses grow through a variety of other initiatives including the expansion of our Entrepreneurial Assistance Program, the enhancement of the State’s Linked Deposit Program and increased availability of the Contract Reporter, the online publication that lists State contracting opportunities. Addressing the issues that small businesses face in today's economic climate remains a top priority.”
Chairman of the Small Business Task Force William Grinker said: “I would like to commend Governor Paterson for his leadership in making small business development a priority of his administration and a critical part of his economy recovery plan. As anyone starting a business knows, finding access to capital often means the difference between success and failure. The funds awarded today will shore up dozens of new business enterprises across the State, and that translates into more jobs and opportunities for New Yorkers.”
New York State has dozens of accredited CDFIs, including community development banks and credit unions that provide hundreds of loans to small businesses that may not qualify for large bank loans each year. CDFIs provide one-on-one counseling to facilitate credit-readiness as well as general business development assistance, often in economically distressed communities.
Earlier this year, Governor Paterson directed ESD to increase funding to the CDFI program. As a result, ESD more than doubled its support of the program, from $1.5 million to 23 institutions last year to $3.8 million to 31 institutions this year. Of that total, $2 million will be directed to MWBE firms.
The following CDFIs were awarded assistance after consideration of a number of factors, including each applicant’s performance under previous program grants, their track record of small business lending, institutional capacity and need and the merits of the proposed project.
Today’s announcement follows on last month’s creation of the New York State Directory of Small Business Programs, a first-of-its-kind comprehensive and interactive guide created by the Small Business Task Force to assist entrepreneurs in starting new businesses and provide current small business owners with invaluable information and resources.
The Task Force will deliver a report to the Governor by the end of this year, which will include recommendations for additional programs to increase small businesses’ access to capital, along with recommendations on reducing government regulatory burdens and developing technical assistance and workforce training programs.
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