ALBANY, N.Y. (11/22/10)--Four community development credit unions (CDCUs) are among the 20 organizations receiving allocations from New York State's new Small Business Revolving Loan Fund, announced Gov. David A. Paterson and the Empire State Development (ESD) Thursday. The four credit union recipients are:
* Alternatives FCU, Ithaca, $1 million; * Bethex FCU, Bronx, $230,000; * Brooklyn FCU, $400,000 * Syracuse Cooperative FCU, $250,000.
"The funding allocations announced today are a major step in easing the small business capital crisis and promoting the growth and development of small businesses in New York," Paterson said. He noted the program "will provide the critical capital necessary to help businesses retain employees, create new jobs, and help grow our state economy." The fund will provide $50 million in loans to small businesses across the state over the next two years. The allocations will support microloans of $25,000 and below, and larger loans of up to $250,000 or above. The fund provides low-interest loan capital to alternative lenders--community development financial institutions, credit unions and small business lending consortia--to address the small business credit crisis and get millions of dollars into the hands of small businesses quickly. The Credit Union National Association and credit unions have supported federal legislation that would lift credit unions' member business lending cap to 27.5% from 12.25% so credit unions could help businesses by providing more than $10 million in loans and more than 100,000 in jobs.