Rep. Maloney hails federal approval of NYS small-business lending program yielding $554 million in economic benefits for NYS
WASHINGTON, D.C. – U.S. Rep. Carolyn Maloney (D-NY), today applauded the approval by the U.S. Department of the Treasury of New York State’s Small Business Credit Initiative (SSBCI). The SSBCI program supports state-level lending to small businesses under the Small Business Jobs Act signed into law by President Obama last year.
“As the economy struggles, this program will help ease access to capital for small businesses in New York looking to invest and expand right here in our neighborhoods,” Maloney said. “And since that spending will also largely occur in our area, this program will have a multiplier effect—giving it more bang for the buck. This $55.4 million program should yield over a half-billion in benefits for New York State.”
Under the Small Business Jobs Act, New York can access $55.4 million in SSBCI funds. New York expects to generate a minimum “bang for the buck” of at least $10 in new private lending for every $1 in federal funding. As such, this $55.4 million allocation for New York is expected to support more than $554 million in new private lending.
The New York State Department of Economic Development, in cooperation with the Empire State Development Corporation, will use these funds to support the New York Capital Access Program ($19 million); the Innovate New York Fund ($26 million), a new fund of funds program for early stage companies; and the New York Bonding Guarantee Assistance Program ($10 million).
Under the State Small Business Credit Initiative, all states are offered the opportunity to apply for federal funds for state-run programs that partner with private lenders to increase the amount of credit available to small businesses. States must demonstrate a reasonable expectation that a minimum of $10 in new private lending will result from every $1 in federal funding. Thus, the overall $1.5 billion federal funding commitment for this program is expected to result in at least $15 billion in additional private lending nationwide.
For more information about the SSBCI, please click here.