Governor Hochul Announces More than $500 Million Awarded to New York State from Biden Administration to Support Small Businesses through the American Rescue Plan

August 19, 2022

Funding From U.S. Treasury Department's State Small Business Credit Initiative Will Support Businesses Recovering from Economic Impacts of COVID-19 Pandemic  

Includes Funding for Minority and Women Owned Small Businesses

Governor Kathy Hochul today announced New York State has been awarded $501.5 million in federal funds through the State Small Business Credit Initiative, which was reauthorized and expanded as part of the American Rescue Plan Act. Managed by the U.S. Department of Treasury, SSBCI provides funds to support programs for small businesses, with emphasis on those still struggling from the economic impact of the COVID-19 pandemic, and helping traditionally disadvantaged small businesses succeed in the post pandemic economy. 

"Small businesses are the backbone of our economy, and far too many small business owners are still feeling the economic toll of the pandemic," Governor Hochul said. "This historic funding will be a game changer - serving as a crucial lifeline for small businesses, fueling innovative growth, and helping uplift the most vulnerable communities across New York State. I thank President Biden, Secretary Yellen, Senator Schumer, Senator Gillibrand and Democrats in the New York Congressional delegation for their leadership on the American Rescue Plan and look forward to continuing to work together as we move the Empire State's economy forward."   

Secretary of the Treasury Janet L. Yellen said, "This is an historic investment in entrepreneurship, small business growth, and innovation through the American Rescue Plan that will help reduce barriers to capital access for traditionally underserved communities. I'm excited to see how SSBCI funds will promote equitable economic growth in New York and across the country."  

U.S. Senate Majority Leader Charles E. Schumer said, "This historic $500 million federal investment is the shot in the arm New York's small businesses need to recover from the pandemic and rebuild our local economies. This federal assistance will help support underserved businesses, invest in entrepreneurs and small businesses in key industries like manufacturing and clean energy to address the nation's supply chain challenges, and create good-paying jobs in the communities that need them most. As majority leader, I fought to secure the State Small Business Credit Initiative federal investment as part of the American Rescue Plan to meet the unprecedented challenges faced by the nation's small businesses during the pandemic and I am proud to now deliver this federal funding for New York to build up the state's small businesses and manufacturing base to accelerate our recovery, and drive our economy into the future." 

Senator Kirsten Gillibrand said, "I am so proud to have helped secure this historic federal funding for SSBCI in the American Rescue Plan. This funding will provide critical resources and increase access to capital for our state's small business owners. Fighting for New York's small businesses means fighting for a bright future and economic prosperity in our state."  

Representative Carolyn Maloney said, "Small businesses are the lifeblood of New York City, but unfortunately, they bore the brunt of the COVID-19 crisis. I am thrilled that Congress could deliver the American Rescue Plan, which helped so many individuals and small businesses who were struggling throughout the City and State. Today, is a critical step in getting the funding from ARP into the pockets of those who need it most as The White House formally approves New York State's $501 million small business funding plan under the American Rescue's Plan's State Small Business Credit Initiative (SSBCI). I commend Governor Hochul for working swiftly with the President so that our small businesses in need can keep their doors open."

Representative Gregory Meeks said, "Small businesses are the backbone of our economy. Governor Hochul's planned use of American Rescue Plan SSBCI funds recognizes the integral role small businesses play in their community's economic development in the post-pandemic economy. This will provide the necessary resources and support, especially for minority and women owned business, to overcome structural and institutional challenges to their continued growth."

Empire State Development President, CEO and Commissioner Hope Knight said, "New York was among the hardest hit by the devastating effects of COVID-19, and many of our state's small businesses are still trying to recover. SSBCI funding will go a long way to help these businesses, particularly those who face historic disadvantages, like MWBEs.  Through a mix of programs designed with businesses' needs in mind, ESD will ensure this critical support gets to those who deserve it most." 

Through Empire State Development, New York State is establishing a suite of programs that will match federal support to the critical needs of the state's small businesses. This programming includes a mix of new initiatives and the expansion of existing programs, focusing on capital access, loan guarantees, loan participation programs, collateral support, venture capital for fund managers and start-ups, and technical assistance.

Read the full press release here.