IDA Loan and Grant Authorization (S.8181-A/A.10294-A)
May 26th, 2020
May 26 , 2020
RE: An act to amend the general municipal law, in relation to establishing a state disaster emergency loan program; and providing for the repeal of such provisions upon the expiration thereof
S.8181-A (May) / A.10294-A (Stirpe)
MEMORANDUM IN SUPPORT
Unshackle Upstate, a non-partisan, pro-taxpayer, pro-economic growth, education and advocacy coalition made up of business and trade organizations from all parts of Upstate New York supports the enactment of this legislation, which would provide industrial development agencies (IDAs) with the flexibility to support small businesses and non-profits during public health emergencies.
The COVID-19 crisis has had a devastating impact on small businesses and non-profits throughout the state. According to the Small Business Administration, more than 81,000 federal PPP loans have been issued in New York – totaling more than $20 billion. While this may provide some temporary relief, these businesses have had their incomes limited or shut off completely throughout this crisis.
This bill would help ease some of this burden by temporarily giving IDAs the ability to provide loans to small businesses and non-profit organizations. Additionally, this legislation would allow IDAs to offer grants for PPE equipment that is necessary for employers to open safely. IDAs already provide a critical economic development role in communities throughout the state. Allowing them additional authority to access existing budget reserves to support businesses in their community is a positive step forward.
Getting New York back to work is a critical goal. Every day this pause goes on more businesses announce permanent closure. This kind of economic loss will hurt an already struggling Upstate economy. As the reopening process evolves, leaders in Albany should be looking for ways to support struggling New York businesses.
This proactive legislation will enhance the ability of IDAs to support their local economies and provide additional relief to struggling small businesses and non-profits. For these reasons Unshackle Upstate supports the enactment of this legislation.
Contact:
Michael Kracker, Executive Director
716.541.1755
Michael.Kracker@unshackleupstate.com