Governor Kathy Hochul today announced that the application portal for the nation’s first seed funding program, created as part of the 2023 budget, will open on September 14. The program provides flexible grants to support small and medium enterprises in the early stages. Businesses in the still-recovering New York State economy. The program ensures funding for small businesses that opened before or during the Covid-19 pandemic to continue and grow.
“This nation’s first seed funding grant program will mobilize $1 billion in flexible funding to support both early stage and established micro and micro businesses. Governor Hochul said. “New York businesses have been among the hardest hit by the nationwide pandemic, but with this funding we are extending a lifeline to help them continue to grow and operate. Applications open tomorrow and I encourage all New York business owners to take full advantage and be part of New York’s incredible recovery.” be
This program builds on New York State’s existing $800 million Epidemic Small Business Recovery Grant program, which has provided more than $639 million to 35,000 small businesses since its inception last year, with 90 percent of the funding going to minority and women-owned businesses. Starting today, Empire State Development will expand eligibility for the program, removing the requirement that businesses show a twenty-five percent loss of annual gross receipts from 2019 to 2020, allowing more small businesses to receive funding. This expansion of eligibility follows changes to profitability requirements and income limits from the previous program, which was intended to serve more small businesses. On September 30, 2022, the program, which currently continues to process applications, will close due to funding cuts.
Empire State Development President, CEO and Commissioner Hope Knight said; The pandemic has had a significant impact on our economy, and our small and micro businesses in New York State have been among the hardest hit. Supporting our state’s small businesses is a top priority for Governor Hochul’s administration and his efforts to expand and access eligibility. Stepping Out the Door has helped countless businesses stay on track: the $800 million Pandemic Small Business Recovery Grant program and now the new seed funding program represent unprecedented support for New York State’s small businesses and a step forward for our economic success.
Seed Funding Program:
The new seed funding program is designed to support New York State small businesses, micro-businesses, and for-profit arts and cultural organizations that began operations on or after September 1, 2018 and have been operating for at least six months prior to application. It is presented. Applicants must have annual gross receipts of $5,000 to $1 million, as reflected on their most recent federal business tax return. More detailed instructions are available here.
Awards for eligible businesses are based on 2020 or 2021 tax returns. Businesses with gross receipts between $5,000 and $49,999.99 can receive $5,000 per business. Businesses with $50,000 to $99,999.99 in gross receipts can be awarded $10,000 per business. Businesses with gross receipts between $100,000 and $1 million will be awarded ten percent of their gross receipts with a maximum grant amount of $25,000. Eligible applicants who have not filed a federal tax return may receive $5,000 per business.
Pandemic Small Business Recovery Assistance Program:
Businesses that have started but not yet completed must submit all required information for the Pandemic Small Business Recovery Grant Program by 5:00 p.m. on September 30, 2022. Recognizing the various challenges small business owners face, New York State offers one. -For One Grant, webinars, a call center and materials in fourteen languages to ensure greater access to this critical funding. In addition, ESD’s network of partner organizations that provide support services to entrepreneurs and small businesses will assist with pandemic grant and loan applications. More information can be found here.
The successful Pandemic Small Business Recovery Grant program has a track record of ensuring that critical funding is going to eligible businesses who need it most: Small businesses, companies with ten or fewer employees, received more than 98 percent of awards. More than 90 percent of grants were awarded to minority and women-owned business enterprises (MWBEs), and more than 47 percent of grant awards were made to socially and economically disadvantaged businesses. To date, the average grant award is $17,783.
State Senator Anna M. Kaplan; “Small businesses have been hit especially hard during the pandemic, and the $800 million Pandemic Small Business Recovery Grant Program has become a lifeline in these difficult times. The new Small Business Seed Program will help support new businesses facing unexpected expenses, and I recommend qualifying small businesses. And Micro business to use this useful program.
Assemblyman Harry Bronson said, “As chairman of the Economic Development Committee, I fought for a comprehensive economic recovery plan that would give our families and businesses a helping hand. Small businesses have struggled during the pandemic, some have closed, and others are still struggling. Between closing and staying, these small businesses, especially in economically distressed communities Those that exist or are owned by people of color have been more disproportionately impacted by COVID-19. Priorities for me and I encourage seeing racial funding programs begin now. These investments in our small businesses and other industries will help ensure a fair and inclusive economic recovery for all.
Assemblyman Al Stirp said: “I can’t think of a more challenging time to start a small business than before the COVID-19 pandemic hit and turned everything upside down. The seed funding program is a critical lifeline for our local businesses and I thank Gov. Hochul for her strong leadership on this. To grow small businesses that create jobs. And I will fight to make our community stronger.
A comprehensive list of all ESD’s Covid-19 business support programs is available here.
About the development of the empire state
Empire State Development (ESD) is New York’s primary economic development agency (www.esd.ny.gov). ESD’s mission is to promote a strong and growing economy, encourage the creation of new job and economic opportunities, increase revenue for the state and municipalities, and achieve stable and diverse local economies. Through loans, grants, tax credits and other financial support, ESD strives to support thriving communities in New York State to foster private business investment and growth. ESD is the primary governing agency for New York State’s regional economic development councils and oversees the marketing of “I LOVE NY,” the state’s tourism symbol. For more information about regional councils and Empire State Development, visit www.regionalcouncils.ny.gov and www.esd.ny.gov.
