Calling all founders and funders! Are you currently raising or considering an equity raise in the near future? You may be eligible for an investment or investment matching through the New York State Small Business Credit Initiative (SSBCI).
About the Programs
New York was recently awarded $501.5 million dollars in federal funds as part of the American Rescue Plan and is reinvesting that capital in support of emerging businesses. The SSBCI has created nine programs to ensure that New York businesses, and businesses that support New York business, thrive. These programs include: the Capital Project Loan Fund, New York State Small Business Revolving Loan Fund Round 2, Capital Access Program, New York State Surety Bond Assistance Program, New York State Contractor Financing Program, Emerging and Regional Partner Program Fund, Community and Regional Partner Program Fund, Pre-seed and Seed Matching Fund Program, and the New York State Innovation Venture Capital Fund. The Capital Project Loan Fund, Emerging and Regional Partner Program and Pre-seed and Seed Matching Fund Program are now accepting applications. The six additional programs will be rolled out in the near future.
Program Highlights
Founders looking to raise capital may be interested in the Pre-Seed and Seed Fund Matching Program. The Matching Program will match investments that start-ups obtain from the private sector and will invest anywhere from $50,000 to $250,000 in a pre-seed or series seed financing in the form of a SAFE, Convertible Note, or direct equity funding. To be eligible, companies cannot have raised more than $2 million of dilutive funding to date and must have a headquarters and at least one C-suite executive based in New York. Applicants must be either registered to do business in New York or be incorporated in the state. The state has earmarked $30 million for the Matching Program and applications are now open (we anticipate the funds will go quickly).
Investment funds are also eligible under the SSBCI through its Emerging and Regional Partner Program Fund. This program will invest in private sector venture capital funds raising a Fund I, II, or III with a demonstrated ability to raise $10 million. To be eligible, a fund must focus on technology or high-growth industries and the fund’s thesis must involve investing in New York companies. The SSBCI has set aside $102 million for this endeavor and applications are also now open for the Partner Program.
Companies looking to develop goods in the state may also be interested in the Capital Project Loan Fund (CPLF). The CPLF will provide direct loans for the growth of manufacturing and other qualified businesses in New York state, with a focus on financing real estate projects and the acquisition of machinery and equipment for manufacturing needs. Applicants may be eligible for up to 40% of their project’s costs; applications are now open.
