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New York State boosts small business support with expanded loan fund

  • / Updated:
  • Staff Report 

New York State has broadened its Small Business Revolving Loan Fund 2, introducing shorter-term microloans alongside regular loans.

The initiative seeks to address the capital challenges faced by startups, underserved communities, and small businesses.

Aimed at fostering economic growth, the state targets especially those businesses historically hindered in securing credit or favorable loan conditions.

The program’s debut in 2010 saw an infusion of $25 million, resulting in almost $280 million in loans to small enterprises.

Prospective borrowers can approach participating Community Development Financial Institutions. These lenders employ the state-provided capital alongside matched funds to maximize available loaning resources. Loan purposes range from working capital and real estate enhancement to machinery acquisition and selective debt refinancing.

Microloans vary between $500 and $25,000, while standard loans can reach up to $250,000. Of the eight inaugural lenders, only NYBDC will cater to the Rochester region, wielding $3 million for statewide applicants.

Each participating lender offers unique application procedures and loan products, with interest rates and terms set individually. The governor’s office anticipates the addition of more lenders in the near future.