Investment Dollars Available To NY Businesses by David H. Peirez
Recently, NYS Comptroller Tom DiNapoli announced the creation of a $200 million Small Business Investment Company to provide debt and mezzanine financing to NY small businesses, a form of capital funding hard to come by for small businesses. The State Pension Fund is contributing $50 million, and five major banks are kicking in the balance to join with the State Program.
New York is a leader in providing multiple sources of capital for in-state companies. Other State Pension fund programs are: In-State Private Equity Investment Program which invests millions of dollars of equity capital, and, NY Business Development Corporation which loans small companies working capital investments.
Additionally, NYS’s Empire Development Corporation makes long term loans on favorable conditions to fund private companies expansion and real estate investments, much like local IDA’s.
There are a number of business considerations to weigh, and certain legal factors which a company needs to understand and take into account in applying for such quasi-capital financing assistance.