New York Gov. Andrew Cuomo has announced the launch a new program that aims to expand access to short-term bridge loans for minority and women-owned business enterprises.
Among the participating lenders in the Bridge to Success program is the $2.7 billion State Employees Federal Credit Union in Albany, N.Y., and the only credit union partner in the statewide effort.
The Empire State Development division will provided $2.73 million in loan loss reserves to five participating lenders who will make $20 million available in short-term, working capital loans to qualifying MWBEs, according to Cuomo's office.
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Loans made under the program will typically be under $200,000 with terms under two years. Funds will provide qualified MWBEs with the bridge capital they need to hire staff, buy materials, or purchase equipment, giving them a better chance to secure and perform on the up to $1 billion that is currently available in state contracting opportunities, said program officials.
"We believe by providing these young companies, as well as seasoned ones, the necessary cash flow, they can compete and expand their business, boosting the economic vitality of our region," said SEFCU President/CEO Michael Castellana.
Castellana has been a long-time supporter of business growth. In 2011, as co-chair of New York's Capital Region Economic Development Council, he advocated for $40 million in grants and tax credits to bring businesses to the Albany region.
The Bridge to Success program complements the New York State Surety Bond Assistance Program, which provides training and financial support to help MWBEs and other small businesses access the surety bonding necessary to bid and perform on state construction contracts, according to Cuomo's office. More than $40 million in surety bonding has been secured by small firms to date through the surety bond assistance program.
"Small businesses are the engine of New York's economy, but because of their size, they have a harder time getting the capital they need to compete for state contracts," said Cuomo in a statement. "Supporting MWBEs is one more way we're expanding economic opportunity for all New Yorkers."
Under the Bridge to Success program, SEFCU will provide lending coverage in parts of the Capital Region, Southern Tier, Central New York, Mohawk Valley, Finger Lakes and Western New York regions.
In addition to SEFCU, the other loan program participants and their coverage areas are:
- New York Business Development Corp – Statewide
- Tompkins Mahopac Bank – Mid-Hudson region
- TruFund Financial Services – Mid-Hudson, Long Island and New York City regions
- Carver Federal Savings Bank – New York City region
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