Hochul proposes $1 billion 'rescue plan' for small businesses 

Small businesses, many of them still struggling to survive the pandemic, would receive $1 billion under a "rescue plan" proposed by Gov. Kathy Hochul.

The plan calls for establishing a COVID Capital Investment Tax Credit for small firms that made changes to their operation last year to protect employees and customers from the coronavirus. The tax credit would cover retrofits, renovations, ventilation systems and other safety measures.

Hochul's plan — unveiled Wednesday in her first State of the State speech — also would have the state invest in technology startups that are "often overlooked by private-sector venture" investors and create a loan program for small businesses that don’t qualify for bank loans.

In addition, Hochul wants to establish the Excelsior Contracting Opportunities Initiative to help New York firms to compete for building contracts from the federal infrastructure law.

The speech and accompanying book didn’t provide financial details about the rescue plan beyond its overall price tag. Those will be in the governor's proposed 2022-23 state budget to be unveiled in about 10 days. The State Legislature will then adopt, amend or reject Hochul's proposals.

For restaurants and bars with customers still afraid to venture inside, Hochul would permanently allow the sale of to-go alcoholic beverages for off-premises consumption. At the start of the pandemic in March 2020, then-Gov. Andrew M. Cuomo issued an executive order authorizing to-go cocktails, but it expired in June 2021.

Local business leaders said Hochul’s rescue plan is sorely needed.

"Small businesses comprise the majority of businesses on Long Island and continue to face obstacles with operating due to the pandemic, especially with the recent omicron surge," said Matthew Cohen, president and CEO of the Long Island Association business group. "The $1 billion small-business package proposed by Gov. Hochul is welcomed and needed now to provide relief. We look forward to hearing more about implementation," he said on Thursday.

Eric Alexander, founder of the downtowns group, LI Main Street Alliance, said the governor’s "empathy" for entrepreneurs is "heartening." She has a "full understanding of what folks have been experiencing through the coronavirus shutdowns," he said.

Alexander is helping to organize a March 8 trip to the Capitol by the Long Island Lobbying Coalition, which represents businesses, nonprofits, unions and environmental groups.

Coalition member Frank Camarano, who also owns a gym in East Meadow, applauded a tax-return change being proposed by Hochul that will save 195,000 small businesses across the state a total of $100 million in income taxes.

The governor wants to increase a tax-return adjustment, called a subtraction modification, that serves to reduce a business’ gross taxable income. She also would make more firms eligible for the modification.

"We were happy to see an additional $100 million in direct aid to small businesses that have been harmed by the coronavirus regulations and shutdowns," said Camarano, who is president of the Nassau Council of Chambers of Commerce.

Other Hochul proposals that would impact small businesses include:

• Additional funding for downtown revitalization projects.

• Support for new apartment buildings near Long Island Rail Road stations.

• More contracting opportunities for minority and women-owned businesses.

By James T. Madore

james.madore@newsday.comJamesTMadore

James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.