- Governor Hochul Announces Billion Dollar Rescue Plan for Small Businesses and Strengthen New York’s Economic Recovery.
- Small businesses incurring COVID-related capital expenses will benefit from a new tax credit, which will be available in the near future.
- SBA’s Small Business Lending Initiative will make loans to expanding small businesses more easily accessible.
The Governor will introduce legislation to make the sale of to-go drinks in bars and restaurants a permanent fixture in state law.
New York Governor Kathy Hochul today unveiled a new billion-dollar rescue plan for small companies as part of the State of the State address in 2022. A variety of initiatives focusing on growing the businesses of the future, assisting new businesses struggling to establish themselves, and providing tax relief will be implemented as part of the Governor’s plan. Small businesses, which account for 98 percent of all businesses in New York, are the backbone of the state’s economy. Additionally, in order to assist New York’s restaurant economy, which has been particularly badly impacted by COVID-19, the Governor will present legislation to enable bars and restaurants to sell to-go beverages on a permanent basis throughout the state.
“The rehabilitation and success of our small companies are critical to New York’s resurgence,” Governor Andrew M. Hochul remarked. “Since the outbreak of the pandemic, small company owners have been confronted with a variety of unusual obstacles. New York has arrived with a straightforward message: assistance is on the way.”
As a former small company owner, Governor Hochul is well aware of the difficulties that small enterprises face, even in the best of economic conditions. Additionally, Governor Hochul is acutely aware of how influenza has impacted small companies throughout New York State, as well as what is required at this time to aid in the recovery of our small businesses in the state.
Governor Hochul’s Billion Dollar Rescue Plan will include targeted programs strategically designed to respond to the needs of small businesses, as well as programs to ensure that disadvantaged, minority-owned, and women-owned small businesses prosper throughout the state, to assist them during this critical time.
The Billion-Dollar Rescue Plan consists of the following components:
New York State’s Small Business Innovation Research and Development (SBIR) initiative will support venture capital and venture loan awards to rapidly developing, venture-backed firms that either relocate to or continue to grow in the state. This money will aid rising small firms in the innovation sector, especially minority- and women-owned enterprises that are typically neglected by private-sector venture capital investments, by providing them with resources and assistance. New York State will maintain its position as a leader in innovation and small company development as a result of this initiative.
Capital expenditures for COVID-related capital improvements, such as retrofits, renovations, machinery, and equipment, will be eligible for a tax credit under the Small Business COVID Capital Investment Tax Credit.
This project will give flexible subsidies to early-stage small enterprises in order to assist those who have recently established in order to get their operations up and running despite the COVID epidemic, according to the Department of Commerce. Small company owners that are socially and economically disadvantaged will be given first consideration.
SBA’s Small Business Lending Initiative will provide lower interest rates and more readily available loans to small firms that are expanding. A key component of this effort will be the implementation of an initiative to address disparities in the traditional loan market, which frequently prevents small businesses, particularly those from economically and socially disadvantaged backgrounds, from obtaining loans to expand their operations or take on larger government contracts.
State-backed funding and technical assistance will be provided through the Excelsior Contracting Opportunities Initiative to position small businesses — particularly those that are socially and economically disadvantaged— to compete for federally funded contracts associated with the $1.2 trillion federal Infrastructure Investment and Jobs Act. Furthermore, the establishment of an interagency Excelsior Contracting Opportunities Council — comprised of representatives from Empire State Development, the State Department of Transportation, the New York State Thruway Authority, the Metropolitan Transportation Authority, and the Port Authority of New York and New Jersey — will help to identify strategies to encourage greater participation by small businesses, particularly minority- and women-owned small businesses, in upcoming federally funded infrastructure projects across the country.
The sale of to-go beverages for bars and restaurants should be made permanent since they were a vital source of revenue for New York’s bars and restaurants during the epidemic, allowing many small companies across the state to pay their rents or mortgage payments. – Governor Andrew M. Hochul has announced that the sale of to-go beverages for use outside of a business will be permitted indefinitely to continue to promote the recovery of bars and restaurants in New York State.
As part of his tax relief package, Governor Hochul would grant $100 million in tax relief to 195,000 small companies by broadening eligibility and raising the amount of a tax return adjustment that decreases a small company’ gross business income.
