Governor Kathy Hochul announced the launch of the Main Street Capital Program, a $10 million fund aimed at providing affordable loans to New York’s start-ups and early-stage businesses. The initiative, part of the state’s broader State Small Business Credit Initiative led by Empire State Development, will offer qualifying entrepreneurs loans of up to $100,000 with flexible payment terms designed to ease financial pressures during the early phases of growth.
“New York’s businesses are the backbone of our economy,” Hochul said. “The Main Street Capital Program will help bolster small businesses, especially minority and women-owned ventures, creating jobs and driving investment across the state.”
The new program addresses a critical need for many entrepreneurs who struggle to secure financing early in their business development. The Main Street Capital Loan Fund provides a more accessible lending option, particularly for Socially and Economically Disadvantaged Individual (SEDI) Owned Businesses and Very Small Businesses (VSB) with fewer than 10 employees.
The loans, which have a six-year term with a fixed interest rate of 9.9%, will offer reduced payments for the first year, giving businesses flexibility to focus on growth. Borrowers will pay less than interest-only in the first 12 months, with no principal payments required during that time.
The fund is a partnership between Empire State Development and Pursuit, a community lender with a 70-year history of supporting businesses in New York. Chris Levy, CEO of Pursuit, expressed enthusiasm for the initiative, noting it provides “flexible capital and advisory services to support the long-term success” of New York’s smallest businesses.
State officials emphasized the program’s potential to benefit underrepresented entrepreneurs. “The Main Street Capital Program is one of the ways Empire State Development is helping start-ups access the tools they need to grow and succeed,” said Hope Knight, President and CEO of Empire State Development.
With accessible financing options often limited for minority-owned, women-owned, and disadvantaged businesses, the program is designed to offer an inclusive path to economic success.
Startups and early-stage companies interested in the program must complete a pre-application questionnaire. Based on their responses, they may be invited to submit a full application or be referred to local Entrepreneurial Assistance Centers (EAC) or Small Business Development Centers (SBDC) for additional support.
The loans are part of New York’s broader strategy to support small businesses through the State Small Business Credit Initiative (SSBCI), funded with more than $500 million in federal aid from the American Rescue Plan Act. These funds are directed at helping small businesses, especially those impacted by the economic fallout of COVID-19, regain footing and thrive in a post-pandemic economy.
The Main Street Capital Program builds on Governor Hochul’s commitment to supporting small businesses. During Small Business Month in May, she introduced several initiatives, including a $6 million Innovation Matching Grant Program to help businesses apply for federal funding.
Hochul also announced that New York surpassed its Minority- and Women-Owned Business Enterprise (MWBE) utilization goals for the 2023 fiscal year, awarding nearly $3 billion in state contracts to MWBE firms and achieving the highest MWBE utilization rate in the country for the third consecutive year.
State Senator Sean Ryan highlighted the importance of backing small businesses in their formative stages. “This program will help budding entrepreneurs get established and keep fledgling businesses on track,” Ryan said.
Assemblymember Albert Stirpe Jr. echoed these sentiments, noting the program’s focus on affordable-rate loans and support for businesses owned by socially and economically disadvantaged individuals as a vital resource for New York’s entrepreneurial community.
In addition to financial assistance, New York offers a range of support services for small business owners. The Department of Labor provides free consultations, workforce recruitment support, and guidance on tax credits and hiring incentives to help small businesses grow.
Hochul emphasized that New York’s 695,000 small businesses, which employ more than 4.5 million individuals, are vital to the state’s economy. The state’s continued investments in workforce development and small business initiatives will ensure that these companies remain a key driver of economic growth.
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