$10 Million Fund Will Provide Start-Ups and Early-Stage Companies with Affordable-Rate Loans up to $100,000
Governor Kathy Hochul today announced the launch of the Main Street Capital Program, a new $10 million fund that will provide qualifying start-up and early-stage companies with access to affordable term loans up to $100,000. Part of New York’s broader State Small Business Credit Initiative efforts led by Empire State Development, this program will help bridge the financing gap experienced by many entrepreneurs as they launch and grow their businesses.
“New York’s businesses are the backbone of our economy and a key driver of our economic growth,” Governor Hochul said. “The Main Street Capital Program will boost and strengthen our small businesses, especially our minority and women entrepreneurs, creating jobs and investment in New York State.”
Recognizing the critical support entrepreneurs need early on, this program offers minimal payments for the first 12 months of the loan to give businesses more flexibility as they launch and grow. Loans will be up to six years with a fixed interest rate of 9.9%. In the first year, borrowers will pay less-than-interest-only, with no principal payments during that time.
This $10 million fund is a partnership between Empire State Development and Pursuit, a community lender with a 70-year history serving businesses in all stages in New York State and beyond.
Many entrepreneurs in the startup and early-growth phases of business lack access to equity and networks for financing needed to be successful. The Main Street Capital Loan Fund offers a more accessible option, particularly for Socially and Economically Disadvantaged Individual Owned Business (SEDI) and Very Small Business (VSB) entrepreneurs with fewer than 10 employees.
Empire State Development President, CEO and Commissioner Hope Knight said, “Entrepreneurs and their innovation fuel New York State’s economy. The Main Street Capital Program is one of the ways Empire State Development is helping provide promising start-ups and early-stage companies the tools they need to launch, grow, and achieve business success.”