New York State has launched a $200 million seed-funding grant for early-stage companies impacted by COVID-19.
This system gives versatile grants and is designed to assist these early-stage small and micro-businesses get better in a post-pandemic financial system. It goals to make sure that small companies that opened shortly earlier than or in the course of the COVID-19 pandemic can have the funds to proceed to function and develop.
This system “rounds out $1 billion in versatile funding to help each early-stage, and established small and micro-businesses,” Gov. Kathy Hochul stated in a press release.
“New York companies have been among the many hardest hit nationwide on the top of the pandemic, however with this funding, we’re extending a lifeline to assist them proceed to develop and function,” she added.
Functions for this system open Wednesday.
“I encourage all New York enterprise homeowners to take full benefit and be part of New York’s exceptional restoration,” Hochul added.
This program builds on the state’s current $800 million Pandemic Small Enterprise Restoration Grant Program, which delivered greater than $639 million to over 35,000 small companies because it launched final 12 months, with ninety % of funding having gone to minority and women-owned companies, officers stated.
Now, Empire State Growth is increasing eligibility for this system, enabling extra small companies to entry funding by eradicating the requirement that companies present a 25% loss in annual gross receipts from 2019 to 2020. This expanded eligibility is along with earlier program adjustments to profitability necessities and income thresholds, aimed toward serving further small companies. This system, which can proceed to course of purposes presently within the pipeline, will shut as funding winds down on Sept. 30.
“The pandemic has had profound impacts on our financial system and our small and micro companies have been among the many hardest hit, particularly in New York State,” Empire State Growth President and CEO and Commissioner Hope Knight stated in a press release.
She stated that “the steps taken to increase eligibility and get funding out the door has helped numerous companies keep on monitor. The $800 million Pandemic Small Enterprise Restoration Grant Program and now the brand new Seed Funding Grant Program marks unprecedented help for New York State’s small companies and for our financial success transferring ahead.”
The state supplied this breakdown of its newly introduced funding alternatives:
Seed Funding Grant Program: Designed to help New York State small companies, micro-businesses and for-profit impartial arts and cultural organizations that began operations on or after Sept. 1, 2018 and have been operational for no less than six months earlier than an software is submitted. Candidates should have between $5,000 and $1 million in gross receipts per 12 months as mirrored on their most up-to-date federal enterprise tax return. Extra detailed pointers may be discovered right here.
Awards for eligible companies are based mostly on their 2020 or 2021 tax returns. Companies with gross receipts starting from $5,000 to $49,999.99 can obtain $5,000 per enterprise. Companies with $50,000 to $99,999.99 in gross receipts could also be awarded $10,000 per enterprise. Companies with $100,000 to $1 million in gross receipts will likely be awarded ten % of their gross receipts with a most grant quantity of $25,000 per enterprise. Eligible candidates that haven’t but filed a federal tax return can obtain $5,000 per enterprise.
Pandemic Small Enterprise Restoration Grant Program: Companies which have began however not but accomplished their present software for the Pandemic Small Enterprise Restoration Grant Program should submit all obligatory info by 5:00 p.m. on Sept. 30, 2022. Recognizing the varied challenges that small enterprise homeowners face, New York State gives one-on-one help, webinars, a name heart, and supplies in fourteen languages to make sure higher entry to this vital funding. Moreover, ESD’s community of associate organizations that provide help providers to entrepreneurs and small companies will assist with pandemic aid grant and mortgage purposes. Extra info may be discovered right here.
The Pandemic Small Enterprise Restoration Grant Program has as robust monitor report of guaranteeing vital funding goes in the direction of these eligible companies most in want: Micro-businesses, outlined as corporations with ten or fewer workers, have acquired over 98 % of the awards. Simply over 90 % of the grants have been awarded to minority- and women-owned enterprise enterprises (MWBEs) and over 47 % of grant awards went to socially and economically deprived companies. To this point, the common grant award is $17,783.
“Small Companies have been hit particularly laborious in the course of the pandemic and the $800 million Pandemic Small Enterprise Restoration Grant Program has been a lifeline throughout a turbulent time,” State Sen. Anna Kaplan, stated in a press release.
“The brand new Small Enterprise Seed Program will assist help newer companies coping with unexpected bills, and I urge certified small and micro enterprise to make the most of this very important program,” stated Kaplan, who chairs the Committee on Commerce, Financial Growth and Small Enterprise.