MicroBizNY Supports:

Inititate a $20 Million Statewide Microenteprise Technical Assistance and Lending  Development Fund MicroBizNY recommends that the state develop a new funding mechanism to support microenterprise training, TA and lending.  This fund could be operated through Empire State Development Corporation (ESDC) and should be made available to all microenterprise development organizations through a statewide RFP.  Regionally based training focused and lending focused organizations should work together to develop collaborative partnerships to meet the needs of local entrepreneurs.  This program should replace the Entrepreneurial Assistance Program as the primary funding source for microenterprise development organizations in NYS. The EAP program, while extremely effective, has been underfunded since its inception and has severely limited the number of organizations that have access to the funding. Based on past research on the efficacy of EAP and other microenterprise development programs NYS should invest a minimum of $20 million in SFY 07-08 to ensure adequate funding for these needed services. Conservative estimates based on prior ESDC research would indicate that the state would see $40 million in tax revenue generated by the new businesses created with this program.

Community Development Financial Institutions
MicroBizNY and the New York CDFI Coalition continue to support an independent New York State CDFI Fund to make investments in CDFI’s for a broader range of financing and financial services purposes.  We urge the Legislature to support a $20 million appropriation and an expansion of eligible financing activities.  We further believe that the fund should be increased to allow for larger grant amounts (going from the current maximum of $50,000 to $100,000) that would help leverage additional federal capital and increase the return on the application process).

TANF/WIA Funds to support Low-Income Microenterprise Development MicroBizNY would urge County Governments to include provisions for microenterprise development in their county bi-ennial employment plans. We believe that all counties (under the FFFS Block Grant) should include financial support for microenteprise development as the federal government has deemed it an eligible use of TANF Funds.  We further believe that local Workforce Investment Boards should also provide funding for microenterprise training services. National research indicates that low-income people can and do open and operate successful small business ventures and approximately half of the clients served by EAP would be eligible to receive services under the TANF eligibility guidelines.  These funds could also be used to develop child-care businesses that would help meet both the need for affordable child-care in our state and provide low-income women the opportunity to develop profitable businesses.