by Jessica DiNapoli Published: November 22, 2010 Tags: CDCLI, Empire State Development, Long Island, Ronkonkoma, Small Business, small business loans
Gov. David Paterson last week announced an allocation of $25 million to a small business revolving loan fund, which microlenders will tap in order to extend loans specifically to “Main Street” businesses.
Five organizations that serve Long Island received a combined total of about $12.5 million, according to a document from the governor’s office.
Steven Cohen, deputy commissioner of Empire State Development, the agency monitoring the revolving loan fund, said the organizations have to pay back what they received at a 1 percent interest rate. To promote risk sharing, the organizations also have to match or show that they can match the state money with private funds raised from donations, Cohen said.
Centereach-based Community Development Corporation of Long Island received $500,000. Accion, an international microlending institution based in Boston that does business in Nassau and Suffolk counties, received a $1 million award.
The new York Business Development Corporation, based in Manhattan, received $7.5 million and their local development branch received an additional $1.5 million, according to the document from the governor’s office. Seedco, which is also based in Manhattan, received $2 million, the document states.
Cohen added that the state will cover a portion of any of the losses on the loans made to small businesses with the money. He said it is a “way of encouraging them to get money out the door.”
