Treasury okays SBA funding for three New York programs

9/19/2011

The U.S. Department of the Treasury recently approved New York Governor Andrew Cuomo's application for additional small business loan capital.

New York's State Small Business Credit Initiative - signed into law by President Barack Obama under the Small Business Jobs Act - will receive $55.4 million in federal funds to be spread across three small business development programs.

The Innovate NY Fund - a seed-stage equity fund that supports innovation, job creation and high-growth entrepreneurship - will receive $26 million. The Capital Access Program - which provides matching funds to loan loss reserve pools at financial institutions as an incentive to increase small business lending - will get $19 million. And the Bonding Guarantee Assistance Program - which provides credit support to help small minority- and women-owned businesses secure bonding - will obtain the remaining $10 million.

"These funds will help break down barriers to loans for creditworthy New York small businesses looking to invest and hire in their local communities," said U. S. Treasurer Rosie Rios.

Western New York has benefited greatly from the infusion of funds, the Buffalo News reports. According to the SBA's Western New York District Office, a total of 33 banks, credit unions and other lenders made 745 SBA loans totaling $126 million in the Buffalo and Rochester areas between October and August.