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Fund your business in New York

New York's loan programs work through lenders, like SBA loans, with state guarantees and small loan funds behind them. Who to ask and where to get free help.

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General information, not legal or tax advice. Requirements vary and change, so confirm current instructions with the official source before you act, and ask a CPA or attorney about your situation.

When your own money isn’t enough, New York’s options mostly work like the federal ones: a lender makes the loan, and a state or federal program backs part of it or funds the lender. The state side is run by Empire State Development, and for most new businesses it comes as loans, guarantees and free help rather than grants; the grant on its list that goes to a business is matching funds for qualifying federal SBIR/STTR recipients.

What’s different in New York

  • Three SBA district offices, in Metro New York, Buffalo and Syracuse, each covering part of the state.
  • The state backs the lender, not you. The Loan Guarantee Program guarantees up to 80% of an eligible loan, and the Capital Access Program insures a lender’s portfolio of small business loans. Under the Capital Access Program, the lender decides; Empire State Development approves nothing.
  • Small loans come through community lenders. The Main Street Capital Loan Fund makes term loans of $100,000 or less to startups and early-stage businesses, and the New York State Small Business Revolving Loan Fund Round 2 funds community lenders to make microloans of $500 to $25,000 as well as larger loans.

Do this

  1. Write down what you need and what it’s for. Equipment, inventory and working capital are different asks, and programs are sorted by use.
  2. Talk to a free advisor first. The New York Small Business Development Center counsels at no cost. Entrepreneurship Assistance Centers offer training and counseling across the state, and the SSBCI Technical Assistance Program provides free legal, accounting and financial help to get loan ready. The SBA’s district offices in Metro New York, Buffalo and Syracuse offer counseling and connect you to partner organizations that help with loan applications.
  3. Understand who lends. SBA loans come from participating lenders, not the SBA. The SBA loans guide explains who makes each kind.
  4. Ask lenders about New York’s programs by name. The Loan Guarantee Program and the Capital Access Program sit behind a regular bank or credit union loan. The Main Street Capital Loan Fund is for a startup or early-stage business with 100 or fewer full-time employees, annual revenue under $5,000,000 and fewer than 4 years in operation. The New York State Small Business Revolving Loan Fund Round 2 lends through community lenders to businesses with 100 or fewer full-time employees. Empire State Development’s SSBCI page lists them all.
  5. Know the disaster route. After a declared disaster, the SBA lends directly through its disaster assistance program, the one kind of SBA loan that doesn’t go through a bank.

What you get back

A loan offer from a lender, with rate, term and collateral. Any state guarantee or insurance is between the lender and Empire State Development; your paperwork is with the lender. Counseling from the SBDC, an Entrepreneurship Assistance Center or an SBA office costs nothing.

Common questions

Can I get an SBA loan directly from the SBA in New York?

Not for its regular small business loans, such as 7(a) loans. You apply and work with a participating lender. SBA disaster loans are the exception; the SBA makes those directly. New York has three SBA district offices, in Metro New York, Buffalo and Syracuse, which answer questions and connect you to lenders.

Does New York give grants to small businesses?

Mostly no. The small business programs Empire State Development lists are loans, loan guarantees, equity investments and free help. The one grant on that list that goes to a business, the Innovation Matching Grants Program, is matching funds for qualifying federal SBIR/STTR recipients; its other grant programs fund research institutions and community lenders. Be wary of anyone selling access to a guaranteed grant.

What is the Main Street Capital Loan Fund?

A state fund, run by Empire State Development with a partner lender, that makes term loans of $100,000 or less to startups and early-stage businesses. To qualify, a business has 100 or fewer full-time employees, annual revenue under $5,000,000 and fewer than 4 years in operation.

Where can I get free help with a business plan or a loan application in New York?

The New York Small Business Development Center offers confidential counseling, training and research at no cost. Empire State Development's Entrepreneurship Assistance Centers train and counsel entrepreneurs across the state, and its SSBCI Technical Assistance Program provides free legal, accounting and financial help to get loan ready. The SBA district offices do the same.

Sources

  1. SBA, district offices
  2. SBA, Metro New York District Office
  3. SBA, Buffalo District Office
  4. SBA, Syracuse District Office
  5. SBA, 7(a) loans
  6. SBA, disaster assistance
  7. Empire State Development, State Small Business Credit Initiative programs
  8. Empire State Development, Main Street Capital Loan Fund
  9. Empire State Development, New York State Small Business Revolving Loan Fund Round 2
  10. Empire State Development, Capital Access Program
  11. Empire State Development, Loan Guarantee Program
  12. Empire State Development, small business hub
  13. New York Business Express, resources (New York SBDC)
  14. New York Small Business Development Center

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