“Another factor was that even in the midst of the SBS pandemic [the Department of Small Business Services] the staff went awry. Everyone very quickly, almost overnight, switched to an online service to the population, ”added Kim.
The agency stands ready to continue serving city business owners even as federal money dries up, he said.
Mayor Eric Adams’ economic review earlier this year announced plans to pool private money to create a $75 million Small Business Opportunity Fund. The fund will lend capital to both start-up and established businesses and target minority and immigrant entrepreneurs who have not received federal support during the pandemic. The program is expected to be launched before the end of the year, according to SBS.
Kim stressed that the administration is looking to improve support for business-improving neighborhoods, especially in suburban neighborhoods and especially those that have traditionally been underfunded in previous years, such as Bridge Street Development Corporation in Crown Heights and the Brooklyn Chinese American District. Association in Bensonhurst. To this end, the current budget has allocated $5.3 million in multi-year grants to fund tenders throughout the city in the fiscal year that began in July.
“We have been able to help some of the smaller BIDs with limited resources so that small businesses can use support services to help them thrive,” said Kim.
The new SBS data is for fiscal year 2022, which began in July 2021 and ended in June of this year. SBS served 26,688 unique clients or businesses, up 7,700 from the previous year. In fact, at no time in the previous four fiscal years has the agency served more than 21,000 unique companies or clients in a single year.
According to the report, the number of unique businesses that received financial support from the agency rose from 1,424 in FY 2021 to a staggering 10,627 businesses in FY 2022. Between FY2018 and FY2021, SBS served fewer than 8,800 businesses combined.
An unprecedented amount of federal support has flowed into the state — and therefore SBS — during the pandemic. In fiscal year 2022 alone, the agency committed $261 million to federal, state, city, and private grant programs, up from the $83 million it committed the previous year.
SBS has helped New York City small businesses connect to:
• $15 billion National Closed Facility Operations Grant, of which the State has awarded $1.98 billion by December 2021 in more than 2,500 individual grants.
• $623 million in various federal, state, local, and private funding efforts between March 2020 and December 2021.
• $100 million Small Business Sustainability Grant offering individual grants up to $10,000 for each business.
• $2.1 million in grants from the Federal Community and the American Plans of Rescue Act to fund Avenue NYC and the 40 Open Streets plans.
The Department of Small Business Services is counting on regulatory relief to make life easier for small businesses after federal funding runs out.
In accordance with the January decree of Adams, the State Border Service has already reformed 118 existing fines and penalties since the beginning of the year – 30 violations have been eliminated, fines have been reduced for 49 violations, and warnings or penalties have been replaced for 39 violations. treatment periods, Kim said.
Small business owners in the city are expected to save more than $8 million a year from these reforms, he said.
“It’s not just about providing money and providing access to capital,” Kim said. – Another aspect … . . . look for ways to educate rather than punish.”
This article has been updated to better reflect the national nature of the Shuttered Venue Operations grant.