Friday, November 26, 2010

New York State sets aside $25M for small business loans

A recent article in the Albany Business Review brought to my attention that New York State has set aside $25M for small business loans.

The board of Empire State Development Corporation approved the funds Nov. 18. The money, in the form of a revolving loan fund, was included in the current state budget as an attempt to combat the problems small companies have had accessing credit during the recession.

The lenders are to provide an equal amount of matching funds—generating $50 million for lending to small businesses, particularly minority- and women-owned firms, over the next two years.

The low-interest capital will flow through 20 “alternative lenders,” such as credit unions and community development financial institutions. The money will support micro-loans of $25,000 and below, as well as larger loans of up to $250,000.

To see a list of the financial organizations receiving the money and to learn more, click here.

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