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Small‑business advocates call for grants, procurement access and $5M for SBDC network

Assembly Committee on Economic Development, Job Creation, Commerce and Industry · October 8, 2024
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Summary

Small‑business advocates and SBDC leaders asked the Assembly to shift some economic development dollars toward Main Street grants and procurement access, and Sonya Smith requested $5,000,000 in direct state funding to preserve Small Business Development Center operations and maintain federal match eligibility.

A coalition of small‑business advocates, economic development associations and members of the Small Business Development Center network urged lawmakers to devote more resources to micro and main‑street businesses and to stabilize the SBDC statewide network.

Ashley Ranslow of the National Federation of Independent Business said many ESD programs are loan‑based or focused on large projects, leaving main‑street employers with limited access to grant support and procurement opportunities. She urged increased use of grants and procurement set‑asides so small businesses can make capital improvements, adopt e‑commerce or build outdoor dining infrastructure.

Sonya Smith, state director of the New York SBDC, told the committee the SBDC network provides hundreds of thousands of hours of counseling, helped launch thousands of businesses and secured millions in capital for clients, yet the state provides less direct funding to SBDCs than peer states. She asked the legislature to allocate $5,000,000 in direct funding to stabilize operations so the SBDC network can meet federal maintenance‑of‑effort requirements and avoid staff reductions that would cut services to entrepreneurs.

Why it matters: Small businesses provide the bulk of private sector jobs in New York and rely on technical assistance and predictable state procurement policies to survive. SBDC matching requirements mean state investments are leveraged by federal funds; loss of state match could reduce federal allocations.

What’s next: Legislators asked for follow‑up details on the $5,000,000 request and for more information on procurement outreach and program redesign to reach micro businesses. ESD pointed to SSBCI programs and entrepreneurial assistance centers as existing technical and capital supports.