A new $50 million Small Business Revolving Loan Fund has been created by New York state, Gov. David Paterson announced Wednesday.
The revolving fund is designed to provide capital to minority and women-owned enterprises and entrepreneurs who are having difficulty accessing regular credit markets.
The pool, supported by $25 million in New York State funds, will leverage $25 million in private matching funds from select lending institutions.
State officials said it will be targeted to everyday businesses throughout the state - mom and pop, retail, service and manufacturing - and startup businesses may also be eligible if they meet certain conditions. These include having a credible business plan, collateral and a track record of business success.
Program loans can be used for working capital, acquisition and/or improvement of real property, the acquisition of machinery and equipment, or the refinancing of debt. A small business is defined as a resident of New York State, independently owned and operated, not dominant in its field, and one with 100 or fewer employees.
For more on New York State's Small Business Division and its programs, visit http://www.empire.state.ny.us/SmallBusiness.html.