NYS roadmap for small business innovation released today

Governor David A. Paterson today accepted the final report of the Small Business Task Force that includes proposals to increase access to capital and accelerate the commercialization of technology.

One of the recommendations in the report is the creation of a state seed capital fund. Linda Dickerson Hartsock, executive director of The Clean Tech Center was a member of the task force and worked on the access to capital team, particularly focused on addressing the early stage funding gap that exists for technology entrepreneurs and early stage companies.

In addition to accepting the final report, Governor Paterson today announced the launch of the New York State Small Business Lending Guide, a free online manual aimed at connecting small business owners and entrepreneurs with alternative banks and credit unions who are lending right now. This is the second guide New York State has launched this year.  In September, New York State released a Directory of Small Business Programs – an interactive online directory of State business resources.

Following the Governor’s response, accepted recommendations will be developed into actionable initiatives aimed at spurring economic growth and making doing business easier.  Key proposals from the Small Business Task Force include:

Create a New Small Business Revolving Loan Fund. Small businesses comprise 98 percent of all businesses in New York and employ 52 percent of the State’s private sector workforce. A new revolving loan fund dedicated to supporting small business owners who cannot access capital from traditional sources; data suggests that a $50 million State fund allocation would generate approximately a 10:1 leverage from the private sector, or close to $500 million, and would generate more than 14,000 jobs in New York State.

Create a State-Supported Seed Capital Fund. A seed capital fund would leverage private venture capital (VC) and support the development of seed-stage and start-up companies. Matching funds could come from New York’s approximately 64 VC firms, the several Angel Networks located in New York State, or other outside sources.  

Supprt the Commercialization of Technology. The Task Force recommends the development or enhancement of seven to 10 technology incubators throughout the State around a model that includes connections to capital, management coaching and recruitment of talent and connections to technology and market planning assistance. Working in tandem with the additional seed capital resources, this effort would assist 250-300 entrepreneurs to develop viable technology companies and secure $200-$300 million in investment over the next three years.