Here’s How To Get SSBCI Funding in New York
The State Small Business Credit Initiative (SSBCI) is distributing $10 billion in funding across all 50 states and territories in the United States in response to the pandemic. Each state has its own rollout plan, and New York is starting to open some of its SSBCI programs. It’s time for New York business owners to start preparing applications.
New York has been allotted $501.5M in federal funding, making it one of the most highly funded states. The funding is being broken down into the main allocation of $377.1M, as well as the second allocation of $124.4M which will target socially and economically disadvantaged businesses. There will be nine total SSBCI programs in the Empire State, but right now only two are open. Keep reading to find out if your business is eligible to start applying.
📍Do you need help applying for financing for your small business in New York? We can help you with 1 on 1 service. Book a call or sign up now.
What kinds of funding can New York businesses receive?
SSBCI funds are distributed utilizing a mix of venture capital programs, equity programs, or loan programs. Each state determines how its funding will be administered. Currently, New York has two different programs open: one provides funding through venture capital and the other through loans. Small business owners will want to take advantage of the loan programs.
You can sign up for Skip to receive updates when additional programs open.
Which SSBCI programs are open now in New York?
Right now, two out of New York’s nine SSBCI programs are open. Here’s what to know about them:
Emerging and Regional Partner Program Fund: This program serves venture capital firms. Its goal is to support the growth and establishment of the next generation of diverse private sector and regional fund managers.
Capital Project Loan Fund: This program provides direct loans to manufacturing and other eligible businesses in New York state. These loans are to be used for purchasing new facilities and/or equipment.
If neither of these programs suits your small business, don’t worry: more programs (with different goals and eligibility requirements) will open. Sign up for Skip to be notified when the next New York SSBCI programs open up.
📍Do you need help determining which program is best for your New York business? We can help you with 1 on 1 service. Book a call or sign up now.
What businesses are eligible for SSBCI funding?
Each state sets its own eligibility requirements. In a state like New York where there are several different SSBCI programs, eligibility will change on a program-to-program basis.
Most small businesses will not be eligible for the Emerging and Regional Partner Program Fund because it’s made for private sector venture capital firms.
However, your business could be eligible for the Capital Project Loan Fund if:
- you intend to purchase facilities for manufacturing, distribution, and warehousing
- you can provide at least 10% of the project cost as equity
What can the funding be spent on?
The Capital Project Loan Fund has strict spending guidelines. In this case, SSBCI funding can be spent on:
- The cost of acquiring an existing building and/or renovations to the existing building
- The purchase of land and/or construction of a new building on that property
- Soft costs normally associated with a real estate transaction
What CAN’T the funding be spent on?
- Retail facilities which customers must personally visit to obtain the goods or services being sold
- Hotel or residential facilities
- Motor vehicles
- Working capital loans
As more SSBCI programs in New York open up, the guidelines around use of the funding will also expand. Sign up for Skip to stay in the know on the latest SSBCI news in New York.
How to apply for SSBCI funding in New York:
Each program has its own application process. If your small business is eligible for the Capital Project Loan Fund, here’s what you can expect:
First, your business must already have a bank loan in progress in order to get this funding. Next, assess whether or not you can provide at least 10% of the project as equity.
If you meet these requirements, the next step is to contact Rafael Salaberrios, Senior Vice President of Small Business and Technology Development Capital Access. This is important because All CPLF loans must be approved by the members of the CPLF board of directors and subsequent approval by the Public Authorities Control Board. This approval needs to happen before the project begins, so it’s important to be proactive. If you need support in this approval process, our Client Success Managers are here to be your resources.
📍If you need assistance, we can help. Book a call or sign up now.
Common challenges in applying for SSBCI funding:
For New York small business owners, applying for SSBCI funding means needing a lot of patience. While it’s exciting that New York is finally opening its SSBCI programs, the rollout is not happening all at once. Programs that may better align with the needs of your small business may not be open yet.
However, it’s important not to let yourself get discouraged by the process either. While you wait for the next wave of programs to open, you can still be proactive: this may mean fine-tuning your business plan, getting your finances in order, or booking a call with a Client Success Manager to discuss the future of your business and potentially apply for other options in the meantime. That way, you can be ready to take action when the right SSBCI opportunity for your business opens up.