Over 80 Percent of Small Business Loans Awarded to Minority and Women-Owned Businesses
New York Small Businesses Generated More Than $1.5 Billion in Economic Impact and Created Approximately 6,000 Jobs
State Has Facilitated Over $1.2 Billion in Loans in the Last Six Years
Governor Andrew M. Cuomo today announced that New York State provided more than $188 million in direct and facilitated loans to small businesses in 2018, and that over 80 percent of those loans went to minority and women-owned businesses. The businesses that received loans from the State generated more than $1.5 billion in economic impact, created approximately 6,000 jobs and retained approximately 10,000 jobs this year. In addition, 927 businesses expanded and 624 businesses launched. This year’s loans build on New York’s longstanding commitment to help small businesses and entrepreneurs succeed and thrive throughout the state.
“Small businesses are the backbone of our State’s booming economy, and New Yorkers with innovative ideas should have access to the support and capital they need to succeed,” Governor Cuomo said. “These investments in small businesses have created new opportunities for workers in every region of the State, and the emphasis on minority- and women-owned businesses will help diversify New York’s economy and ensure it remains competitive for decades to come.”
“I helped my mother start a family-owned small business, and I know firsthand the barriers faced by aspiring entrepreneurs,” said Lieutenant Governor Kathy Hochul. “Small businesses are a big part of New York’s economy, and we’re committed to ensuring their growth and success across the state. We are increasing access and opportunities to women and minority-owned businesses, leading the nation with the highest utilization goal in the country. With these loans, we’re helping to break down barriers and continue to expand small businesses and MWBEs to support local entrepreneurs and strengthen the economy.”
Loans are provided through a combination of community development financial institutions, which are smaller funds overseen by community organizations, and alternative lenders that provide credit and financial support to small businesses across the state. Financial assistance provided by Empire State Development (ESD) is primarily focused on entrepreneurs and businesses that have historically struggled to obtain access to capital.
Ten Innovation Hot Spots and 20 Certified Business Incubators around the state provide support to startup and early-stage companies with finding physical space, accessing capital, networking and other services. Companies assisted by the state have often looked to export products abroad, build or renovate their facilities or launch new technologies. In addition to financial assistance, ESD provides entrepreneurial development through programs, such as the Entrepreneurial Assistance Program, that offer mentoring, business counseling and guidance in various topics, such as creating a business plan, finding contracting opportunities and working with an incubator. These programs help guide entrepreneurs and early-stage companies toward growth and opportunity.
New York also encourages and assists state agencies to award a fair share of contracts to certified Minority and Women-owned Business Enterprises (MWBEs), in addition to reviewing applications by businesses seeking certification, maintaining a directory of certified MWBEs and promoting the business development of MWBEs through education and outreach.
Through its financial, entrepreneurial and technology assistance programs over the last six years, ESD has:
- Facilitated more than $1.2 billion in loans
- Created and retained more than 110,000 jobs
- Launched more than 4,400 small businesses
- Generated more than $9.5 billion in economic impact
Empire State Development President, CEO & Commissioner Howard Zemsky said, “Small businesses are a cornerstone of New York State’s economy, and we continue to support the state’s minority and women-owned small businesses and other entrepreneurs that drive economic growth and job creation throughout the state.”