SEFCU in NY Biz Program
New York Gov. Andrew Cuomo announced the launch of a new program that aims to expand access to short-term bridge loans for minority and women-owned business enterprises.
Among the participating lenders in the Bridge to Success program is the $2.7 billion State Employees Federal Credit Union in Albany, N.Y., and the only credit union partner in the statewide effort.
The Empire State Development division will provided $2.73 million in loan loss reserves to five participating lenders who will make $20 million available in short-term, working capital loans to qualifying MWBEs, according to Cuomo's office.
Loans made under the program will typically be under $200,000 with terms under two years. Funds will provide qualified MWBEs with the bridge capital they need to hire staff, buy materials, or purchase equipment, giving them a better chance to secure and perform on the up to $1 billion that is currently available in state contracting opportunities, said program officials.
“We believe by providing these young companies, as well as seasoned ones, the necessary cash flow, they can compete and expand their business, boosting the economic vitality of our region,” said SEFCU President/CEO Michael Castellana.
The Bridge to Success program complements the New York State Surety Bond Assistance Program, which provides training and financial support to help MWBEs and other small businesses access the surety bonding necessary to bid and perform on state construction contracts, according to Cuomo's office. More than $40 million in surety bonding has been secured by small firms to date through the surety bond assistance program.