Assemblyman Phil Palmesano (R,C,I – Corning) today announced the passage of legislation that will provide funding for small businesses and seed-stage businesses in order to spur substantial growth and job development that will generate economic activity in New York state.

The legislation, Assembly Bill A-8452, which has passed both houses of the legislature and now awaits action by Governor Cuomo, will provide for the appropriation of federal funds received by the Department of Economic Development. As part of the federal government’s State Small Business Credit Initiative, New York is in line to receive approximately $55.4 million.

This bill would allocate $18.9 million to the Capital Access Program, which expands the availability of loan capital to small businesses who otherwise find it difficult to obtain regular or sufficient bank funding. It also will provide for the creation of the Innovative NY Fund, which would make $25 million in funds available for start-up companies located in New York who demonstrate the potential for growth and job development in an emerging technology field and have the potential to generate additional economic activity in New York.

“Investing in small business and innovative start-ups is the best way to get our economy back on track,” said Palmesano. “These programs will help spur job growth and economic development.”

The bill will require the Empire State Development Corporation to establish a competitive process for evaluating applicants. Funds distributed by Innovative NY are limited to $500,000 to an individual, or $750,000 for a biotechnology-related beneficiary.

“New York must maintain its position on the forefront of emerging business ideas and products. Innovation and modernization will help build sustainable businesses to provide much- needed jobs for New Yorkers, in addition to bolstering local economies,” said Palmesano.