Small Manufacturers Modernization Grant

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To assist NYS small legacy manufacturers to invest in projects that will significantly increase the operational efficiencies and market competitiveness of their businesses to keep them thriving in New York. 

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Grant funding is available through the State‘s Regional Economic Development Council Initiative, which helps drive regional and local economic development across New York State in cooperation with 10 Regional Economic Development Councils (“Regional Councils”). Funding is available to support existing New York State small manufacturers investing in capital projects that will improve competitiveness or productivity through modernization and integration of advanced technology.  

Only Minimum grant requests of $50,000 or more will be reviewed.

Applicants are strongly encouraged to reach out to their ESD Regional Office to discuss their project prior to submitting an application.

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Eligible Applicants include for-profit businesses and not-for-profit organizations who are primarily engaged in manufacturing and meet the following criteria:

  1. The applicant manufactures a product within one of the targeted industries below.
    • Agribusiness and Food Production (including Craft Beverage)
    • Biotech and Life Sciences 
    • Cleantech and Renewable Energy
    • Defense Systems (including Aerospace)
    • Industrial Machinery and Systems
    • Materials Processing
    • Optics, Photonics, and Imaging
    • Semiconductors
    • Tech and Electronics
    • Transportation Equipment
  2. The applicant must retain the current level of all existing full-time permanent employees for a period of 2 years following the execution of a Grant Disbursement Agreement. ESD will be entitled to recoup all or part of ESD’s grant if the applicant fails to reach or retain employment as agreed upon.
  3. The applicant is a NYS small manufacturing business operating in NY for at least 10 years.
    • For this program, a small manufacturing business must have a minimum of 5 full[1]time permanent employees**, with a maximum of 99 full-time permanent employees in all of New York State.

  Funds may be used for:

  • Acquisition of land, buildings, machinery and/or equipment;
  • Demolition and environmental remediation;
  • New construction, renovation or leasehold improvements;
  • Acquisition of furniture and fixtures; and
  • Other costs / expenditures deemed eligible by ESD.