Assemblyman William F. Boyland Jr. 55th District announced the recently passed 2013-14 state budget includes a $365,000 increase to the Minority- and Women-owned Business Development and Lending Program, for a total appropriation of $1 million, and opens certain state programs to more small businesses (A.3009-D).
Expanding loan eligibility for MWBEs
“Over the past few years, New York State has secured its spot as a great place to do business, and the 2013-14 budget takes another step in the right direction,” Assemblyman Boyland said. “Our minority- and women-owned small businesses (MWBEs) are vital assets to our districts economy. The Assembly Majority is committed to keeping them up and running and encouraging more businesses to open their doors right here in New York.”
Specifically, the budget authorizes MWBEs and other small businesses to access “bridge loans” for procurement purposes from the Small Business Revolving Loan Fund. Bridge loans are short-term loans that allow businesses more time to work out a long-term financing plan.
“The bottom line is that by allowing our small businesses and MWBEs to be eligible for bridge loans, we ensure they get the money they need more quickly to jumpstart their growth,” Assemblyman Boyland said. “A recent studyi suggests that MWBEs face extreme difficulty in obtaining credit that’s completely unrelated to their creditworthiness, industry or geographic location. Small businesses are the economic drivers in the 55th District, and the 2013-14 state budget helps level the playing field for MWBEs to make sure they have as much opportunity to compete in today’s competitive market as any other business.”
Creating a new Business Incubator and Innovation Hot Spot Program
The 2013-14 final budget also creates a new Business Incubator and Innovation Hot Spot Program that will designate high-tech business incubators and 10 “hot spots” to encourage private-sector growth with higher education institutions. Under the act, MWBEs will be a factor in considering whether an entity will be designated as a business incubator or innovation hot spot. The program will provide tax exemptions to selected businesses in hot spots and operating grants to eligible business incubators and innovation hot spots.
Expanding the Excelsior Linked Deposit Program
Additionally, the spending plan expands the Excelsior Linked Deposit Program (ELDP) to small businesses in the technology and innovation industries. The ELDP encourages qualified New York State businesses to improve productivity and competitiveness by offering a reduced rate on loans provided by commercial banks, farm credit institutions and the New York State Business Development Corporation.
i. www.esd.ny.gov/MWBE/Data/NERA_NYS_Disparity_Study_Final_NEW.pdf
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