Proposed legislation approved May 27 by both the State Senate and Assembly would give industrial development agencies more to support small businesses and nonprofit organizations during the coronavirus pandemic. The measure needs to be signed by the governor.
The bill enables IDAs to offer grants and in-kind donations to small businesses and small not-for-profit organizations for personal protective equipment and fixtures - like plexiglass - needed to prevent the spread of Covid-19. It authorizes IDAs to provide up to $25,000 in loans to small businesses and small nonprofits to help remain viable. Industrial development agencies help to foster economic development.
“It is devastating to see many small businesses close in our communities putting thousands out of work,” State Sen. Todd Kaminsky, (D-Long Beach), a co-sponsor of the measure, said in a news release. “We need to make it easier for our downtowns to bounce back and this bill will help jump-start the economic rebirth of Long Island.”
Through the current health crisis, small businesses and small not-for-profit organizations have been forced to pare services or shut down operations. The result has been thousands of people unemployed and communities devastated. Current law limits IDAs from providing loans and donations to businesses even though they are in desperate need of short-term financial assistance to remain viable.
“I commend Senator Kaminsky for leading the way to give IDAs the ability to give grants and loans to small businesses to help them recover and reopen after this horrible pandemic,” Nassau County IDA Chair Richard Kessel stated in the same release. “IDAs all across the state have millions of dollars that can be used to invest in the economy and help our downtowns. Nassau will certainly be part of this.”