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NY’s Billion Dollar Small Business Rescue Plan

Earlier this week, New York State Governor Kathy Hochul announced a new Billion Dollar Rescue Plan for small businesses, as many are still struggling due to economic hardship faced during the COVID-19 pandemic. This new rescue plan is wide-ranging and is set to do everything from increasing businesses’ accessibility to funding and tax relief as well as legalizing the sale of to-go drinks for bars and restaurants, permanently.

Governor Hochul endorsed this latest round of relief by stating, “Since the pandemic hit, small business owners have been struggling with unprecedented challenges. New York is here with a simple message: help is on the way.” Hochul’s announcement only gave an overview of what is to come and did not provide financial details on the plan; those are expected to be unveiled in about a week alongside her proposed 2022-2023 state budget. Let’s take a look at what’s to come:

Overview of Relief to Come

The Small Business COVID Capital Investment Tax Credit
As COVID surged this past year, many businesses were forced to spend on COVID-related expenses. Those who took on these capital expenses which include; retrofits, renovations, machinery, and equipment related to COVID safety enhancements can now expect some relief set to come in the form of a tax credit.

Funding for Small Businesses of the Future
This initiative is set to support venture capital and venture debt awards to fast-growing, venture-backed startups that locate to, or remain and grow in New York. More specifically, emerging small businesses in the innovation sector, including minority and women-owned companies that Hochul states are, “Often overlooked by the private-sector venture.”

Seed Funding for Small Businesses
Early-stage small businesses were among those hit especially hard by the economic backlash of the virus. The plan is set to offer flexible grants to early-stage small businesses to help them get off the ground. Priority of this relief is being given to socially and economically disadvantaged small business owners.

The Excelsior Contracting Opportunities Initiative
State-backed funding and technical assistance will be provided through this initiative to help those socially and economically disadvantaged to secure federally funded contracts related to the $1.2 trillion federal Infrastructure Investment and Jobs Act.

Additionally, this initiative will establish an interagency Excelsior Contracting Opportunities Council which will include Empire State Development, the State Department of Transportation, the Thruway Authority, the Metropolitan Transportation Authority, and the Port Authority of New York and New Jersey. This council will be purposed to identify strategies to encourage greater minority and women-owned small business participation in coming infrastructure projects in the State.

Permanently Legalize the Sale of To-Go Drinks for Bars and Restaurants
During the pandemic, New York’s bars and restaurants were permitted to sell to-go drinks to supplement their revenue streams. This was able to generate “critical revenue” for many small businesses and helped them pay key expenses such as rent and mortgages.

More Details to Come

This massive relief package outlined by Hochul in her State of the State presentation would be sure to help small businesses in New York with these various initiatives. We will monitor this proposal closely as we await more details, set to be released during Hochul’s one-year budget proposal later this week.

How will this all shape up in the next coming weeks? For a better understanding feel free to give us a call at 516-541-6549.

 
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