New York small business grants
If you are thinking of starting a new business then one of the most pivotal requirements is to get your startup off the ground. There are several elements that come into the launch of a new business and the most important of them is getting the right funding. There are different types of funding options although the New York small business grants are most sought after by small businesses. This article will provide you with an insight into NY business incentive programs and New York grants for a small business that you can leverage.
Doing Business in New York
Home to the two largest stock exchanges globally, New York is a dream market for small businesses. The state has an unparalleled economy boasting a gross state product of US$1.9 trillion in 2021. NY State is considered the 10th largest economy in the world and offers everything an entrepreneur needs right from top accelerators to crowd-sourcing innovation platforms and New York state small business incentives for startups. There are several industries in which doing business in NY State can be highly rewarding including banking, finance, and communication.
Why is New York State a good place to do business?
New York is considered one of the best places to form a startup especially because of the funding options available including New York small business grants. Of course, there are numerous other benefits of transacting in a state that enjoys a robust infrastructure and vibrant economy. If your long-term goals are business growth and expansion then this is the state to conduct your business in as you can reach out to local as well as global customers with ease. There are several factors that contribute to the fact that doing business in NY State is beneficial to any form of business. Some of the factors and top advantages are:
- A Strong Innovation Ecosystem – New York boasts of a robust and resilient tech ecosystem that has taken the state rankings to #2 and right on the heels of Silicon Valley. The technology sector is valued at $147 billion and according to the 2020 Global Startup Ecosystem Report (GSER); NY has the second best startup ecosystem in the world. The state also attracts both funding and acquisition thus ensuring doing business in NY State is lucrative and growth oriented.
- Deep Talent Pool – New York is home to 2.3 million small businesses and 4.1 million small business employees. Whatever your business may be, you will always require employees to handle specific areas of your company. This is one of the reasons entrepreneurs prefer New York as it is home to one of the largest talent pools. A survey reveals that 44 percent of New Yorkers have a college education and the state also attracts talent from surrounding states and cities including Boston (Massachusetts) and Washington D.C. In fact, there are New York state small business incentives targeted at employment like the Employment incentive credit (EIC), which provides tax credits to new businesses. Some of the top universities in New York adding to the existing talent pool include Columbia University, New York University (NYU), and Cornell University among others.
- Robust Infrastructure – One of the factors integral towards doing business in NYS is infrastructure. This includes commercial space, transportation, and logistics. The state has been making strategic investments towards modernizing their rail and maritime assets along with the creation of new distribution facilities with the objective of providing a resilient and sustainable logistics network. The state also has an established Foreign Trade zones program (FTZ) that provides special status like duty elimination to foreign imports. The FTZ is a part of the New York state small business incentives programs and caters to a wide variety of industries like construction, pharmaceuticals, fashion, food production, green tech, and luxury goods.
- Tax Benefits and Incentives – Taxes can be financially draining for new and small businesses. If you plan on doing business in NY State then one of the advantages you or your business can enjoy is the tax incentives or benefits. There is a wide variety of New York state small business incentives programs including different types of tax credit programs. The tax credits are available according to industry, regarding employment, job creation and workforce training incentives, commercial tax credit programs, and opportunity zone programs among others.
Small Business Incentive Programs and Grants in New York
If you are planning to form a startup in New York then one of the advantages you will enjoy is access to a wide range of New York small business grants and incentive programs. The importance of these grants and incentives can be established in the very fact that whatever the type or size of business, there is an initial cost of formation and operation. Sometimes this cost can be higher than what you had worked out in your business financial plan and the inability to meet such costs can negatively impact business operations. This is where New York grants for a small business and incentive programs can help in offsetting short-term as well as long-term operational costs.
Tax Based Incentives
There are different types of New York small business grants and incentive programs administered by state agencies as well as the Federal government. The incentives can be categorized according to the industry, business activity, financial relief programs, and tax credits. One of the most popular business incentives apart from New York grants for a small business is the tax based incentive programs. You can qualify for these incentive programs after you form or register your company in New York. Let’s look at some of the top tax-based incentive programs in the state.
- Commercial Tax Credit Program – The New York State Commercial Tax Credit Program has been specifically designed for increasing commercial film production in the state. It is a form of New York state small business incentives program that allocates credits of up to $7 million each year. As an applicant or new business, you can receive a credit of almost 30% on production expenses that qualify under this program. This program is also known as the Empire State commercial production credit program and you will be issued an allocation certificate by the New York State Governor’s Office of Motion Picture & Television Development.
- Life Sciences Tax Credit Program – The Life Sciences Research and Development Tax Credit Program as it is known is different from a New York small business grants program. This program has been specifically designed for supporting companies that are locating, commercializing, inventing, and producing in the life sciences department in the state. Through this program, you can get credits of up to $10 million each year. The credit provided is 15% for any company that employs 10 or more people and 20% for any company employing less than 10 people. The program is being administered by the Empire State Development and you will have to file the New York grant application for tax credits also known as Form CT-648 or Form IT-648.
Are you planning to start a New Business in New York?
If you have recently launched your business in New York and are looking for finance options then New York small business grants like investment funds can be quite helpful. An investment fund is basically a supply of capital that belongs to multiple investors and is used for collectively purchasing securities where-in each investor retains control and ownership of his/her shares. New York investment funds provide much broader selections in terms of investment opportunities and new businesses can leverage this. Some of the most common investment funds include exchange-traded funds, mutual funds, hedge funds, and money market funds.
Innovate New York Funds
If you plan on doing business in NY State then the Innovate NY Fund can be quite beneficial. It is a type of seed stage business equity fund that has been designed to provide investment capital to business owners and managers across the state. This type of New York small business grants are used primarily for investment in seed-stage businesses that support innovation, employment or job creation, and high-growth entrepreneurship in this state. This program is supported by a grant of up to $35.6 million from the US Department of Treasury and up to $10.3 million from Goldman Sachs.
Minority and Women-Owned Business Investment Funds
The Minority and Women-Owned Business Investment Funds (MWBE Fund) is one of the best forms of New York grants for a small business. The primary objective of this grant is to provide financial assistance to minority and women-owned business enterprises (MWBE) in the state of New York. The fund also supports programs and projects that assist the overall entrepreneurial development amongst minority people and women in the state. The MWBE is a New York small business grant that provides funding through:
- Incubator assistance
- Direct financial assistance
- Lending through joint efforts with the local, community as well as regional entities
- Lending for eligible government contractors and certified government contractors
- Technical assistance
New York Ventures Direct Fund
Seed funding for small businesses is one of the most difficult to find and this is where the New York Ventures Direct Fund can be quite helpful. It is targeted at small business owners with funds available worth $100 million. You can file a New York grant application for this fund if your business is specializing in the emerging technology field. The seed investments for each startup can vary from $500,000 to $1.5 million.
Innovation Technology Commercialization Funds
The Innovation Technology Commercialization Investment Fund is also known as the “Innovation TC Fund” and it is focused on helping small businesses have access to investment capital. This type of New York small business grants is targeted at pre-seed stage companies across the state. Some of the participating investment entities include Accelerate NY Seed Fund, Z80 Labs Innovation TC Fund, and Z80 Labs Innovation TC Fund among others. The funding amount of New York grants for a small business through the Innovation TC Fund can vary according to the investment partners like the CenterState Growth Innovation TC Fund awards up to $150 million in capital grants.
Venture Capital – New York Ventures
If you are a first time entrepreneur searching for New York small business grants then venture capital through New York Ventures is a good option. New York Ventures invests in entrepreneurs and small business owners from diverse backgrounds whose objectives focus on using innovative technology to solve a variety of large-scale problems. The sectors primarily targeted are Health Tech and Life Sciences, Climate Technology, Advanced Manufacturing, Ag-tech Systems, Data, AI, SaaS, and other technologies. The state provides $100 million to a direct investment fund, which is used to provide financial support to seed and series A rounds. You don’t need a New York grant application to qualify for venture capital; instead, send them your investment presentation for a review.
Ready to Start a Business in New York?
Every business requires financial assistance in the form of startup capital when it comes to establishing business operations, New York state small business incentives and grants play a key role. In order to qualify or apply for these grants and incentives, you have to register your business in the state and this is where IncParadise can assist you.
IncParadise is an expert incorporation service provider in New York and we can help you to start your business in New York quickly and efficiently. We can also help you with all state required annual filings and compliances through our business related additional services.