Legislation introduced by Senator Jim Alesi to provide greater resources to assist emerging businesses and to foster job growth was signed into law by the governor yesterday. Senate bill 5782, introduced in consultation with Empire State Development, will make available millions of dollars to small businesses in New York State to encourage innovation and job creation.
“From January to now, my top priority this Session has been revitalizing New York’s economy and putting people back to work,” said Senator Alesi, Chairman of the Senate Committee Economic Development. “Today’s legislation will provide a mechanism whereby New York’s hundreds of small businesses will be able to access more than $50 million in federal funds to reinvigorate the state’s dormant Capital Access Program, and to empower emerging businesses through the Innovate NY Fund. Ultimately, these vital funds will further my efforts to revitalize our struggling economy and create new jobs, and no one could argue that New York doesn’t need new jobs right now.”
To support emerging business ideas and products that result in job growth and retention in New York State, this legislation will revive New York’s Capital Access Program by strengthening the statute governing its function and by providing for new funding. This will greatly assist small businesses by enhancing the climate for lending in traditional and alternative financial institutions. In addition to funding the Capital Access Program, funds will be used to finance the Corporation's bonding guarantee assistance program. This program will aid small businesses, including minority-owned and women-owned firms, in obtaining the necessary bonding authority to secure State contracts.
This law also establishes the Innovate NY Fund that would leverage federal funding by providing monies to entities, including regional and local economic development organizations, technology development organizations, research universities and investment funds, which will use the funding to make seed-stage investments in New York State small businesses.
Senator Alesi is a former small business owner, and as Chairman of Economic Development, brought real experience and common sense to several of this year’s top economic initiatives – most importantly as the Chairman of the Joint Budget Conference Committee on Economic Development, spearheading a state budget that reduces government spending, cuts the deficit, removes crippling regulations on New York’s small businesses, and sets New York on the path to economic recovery. For these efforts, among others, Senator Alesi was re-appointed to the New York State Small Business Advisory Board.
In January, the Senate passed Senator Alesi’s 2011 Job Creation and Retention Package, a comprehensive proposal to improve our state’s economic climate by providing businesses with a three-year tax credit, up to $5,000 for every new job created, eliminating taxes for small businesses and manufacturers with 50 or fewer employees, or less than $2 million in net income, that pay the state corporate franchise tax, and rolling back the income tax surcharge imposed on small businesses during the last legislative cycle. The legislation also places a moratorium on new taxes, fees and regulations.
“The simplicity of my plan is also its strength,” said Senator Alesi of the Job Creation and Retention Package. “Give businesses incentives and the ability to stay and grow here in New York and then leave them alone as they try and do so. Instead of repeatedly taxing and regulating them, let us reward businesses and manufacturers when they create new jobs and give them incentives to create more!”