New York Governor Launches Small Business Credit Initiative

2 mins read
Small Business

Governor Kathy Hochul has unveiled New York State’s participation in the federal Initiative for Inclusive Entrepreneurship, aimed at bolstering small businesses owned by historically disadvantaged populations. This initiative aligns with Hochul’s commitment to supporting Minority- and Women-owned Business Enterprises (MWBEs) and Socially and Economically Disadvantaged Individual (SEDI)-owned businesses across the state.

The federal Initiative for Inclusive Entrepreneurship, introduced by Vice President Kamala Harris, complements New York’s efforts to ensure equitable implementation of the U.S. Treasury’s $10 billion State Small Business Credit Initiative (SSBCI). New York has received over $500 million from the SSBCI, facilitating access to capital and essential resources for small businesses.

Governor Hochul emphasised, “New York’s business landscape must reflect the rich diversity of our state. My administration is committed to breaking down systemic barriers and ensuring that all businesses, particularly those owned by minority and women entrepreneurs, have the opportunity to thrive.”

Empire State Development (ESD) has partnered with Founders First Capital Partners to provide educational resources and funding readiness programmes for SEDI-owned companies. Leveraging on-demand video modules through the Passport for Funding education program, SEDI-owned businesses will receive guidance to understand and overcome common obstacles to funding readiness.

Kim Folsom, CEO, Chair, and Founder of Founders First Capital Partners, stated, “Our Supplier Innovative Finance Programme aims to enhance the capacity of small, certified suppliers, guiding them through an experience that increases their awareness of innovative finance and capital access.”

Under Governor Hochul’s leadership, New York State leads the nation with a 32.3 percent utilisation rate in MWBE utilisation on its state contracts. Hochul’s commitment to supporting MWBEs has resulted in nearly $3 billion in state contracts awarded to MWBE firms during the 2023 Fiscal Year.

Senate Majority Leader Chuck Schumer praised the initiative, highlighting its role in rebuilding local economies and creating jobs. Senator Kirsten Gillibrand also expressed support, emphasising the importance of advancing equity for small businesses.

The federal Initiative for Inclusive Entrepreneurship signifies a pivotal step towards fostering an inclusive entrepreneurial ecosystem in New York State, empowering minority entrepreneurs to thrive and contribute to economic growth.