$10 million in loans available for smallest businesses in NYS
Main street in Islip in September. The state is offering small business loans of up to $100,000 per applicant with a fixed interest rate of 9.9%. Credit: Barry Sloan
The state has begun taking applications from startup businesses for $10 million in loans, Gov. Kathy Hochul announced.
The Main Street Capital Program offers loans of up to $100,000 per applicant with a fixed interest rate of 9.9%. The loan term is up to six years.
The program targets the smallest businesses, particularly those owned by women and members of minority groups, the governor said.
Under the guidelines, borrowers in the first year can make payments less than the interest owed.
"New and early-stage small businesses often need more time to grow their revenues before repaying their debt, and this time crunch can lead them to predatory sources of capital," said Steve Cohen, an executive at the small-business lender Pursuit.
The loan program will be run by Albany-based Pursuit and Empire State Development, the state’s primary business-aid agency.
The program gives borrowers "their best chance at long-term success by providing flexible capital and advisory services to support their future," Cohen said.
To apply for a loan, applicants must first complete a pre-application questionnaire to determine eligibility.
Based on their responses, the applicants will then be invited to fill out an application or may be directed to the free counseling services offered by the Small Business Development Centers and Entrepreneurial Assistance Centers across the state.
On Long Island, there are development centers at Farmingdale State College and Stony Brook University and assistance centers at Hofstra University and Suffolk County Community College.
More information may be found at esd.ny.gov/main-street-capital-loan-fund.
Kevin Law, chairman of the ESD board and a partner in the Ronkonkoma-based real estate firm Tritec, called the loan program "a game-changer for entrepreneurs across New York, especially on Long Island, where targeted investments will keep our region competitive and prosperous for years to come ... By empowering Long Island’s entrepreneurs, we are fostering economic growth, creating jobs and revitalizing communities from the ground up."
The state has begun taking applications from startup businesses for $10 million in loans, Gov. Kathy Hochul announced.
The Main Street Capital Program offers loans of up to $100,000 per applicant with a fixed interest rate of 9.9%. The loan term is up to six years.
The program targets the smallest businesses, particularly those owned by women and members of minority groups, the governor said.
Under the guidelines, borrowers in the first year can make payments less than the interest owed.
"New and early-stage small businesses often need more time to grow their revenues before repaying their debt, and this time crunch can lead them to predatory sources of capital," said Steve Cohen, an executive at the small-business lender Pursuit.
The loan program will be run by Albany-based Pursuit and Empire State Development, the state’s primary business-aid agency.
The program gives borrowers "their best chance at long-term success by providing flexible capital and advisory services to support their future," Cohen said.
To apply for a loan, applicants must first complete a pre-application questionnaire to determine eligibility.
Based on their responses, the applicants will then be invited to fill out an application or may be directed to the free counseling services offered by the Small Business Development Centers and Entrepreneurial Assistance Centers across the state.
On Long Island, there are development centers at Farmingdale State College and Stony Brook University and assistance centers at Hofstra University and Suffolk County Community College.
More information may be found at esd.ny.gov/main-street-capital-loan-fund.
Kevin Law, of Tritec, says the loans will keep Long Island small businesses competitive. Credit: Elizabeth Sagarin
Kevin Law, chairman of the ESD board and a partner in the Ronkonkoma-based real estate firm Tritec, called the loan program "a game-changer for entrepreneurs across New York, especially on Long Island, where targeted investments will keep our region competitive and prosperous for years to come ... By empowering Long Island’s entrepreneurs, we are fostering economic growth, creating jobs and revitalizing communities from the ground up."
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.
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