U.S. Department of Commerce Invests $6 Million in CARES Act Recovery Assistance to Support Business Capital and Resiliency Efforts in New York
WASHINGTON – Today, U.S. Secretary of Commerce Gina Raimondo announced that the Department’s Economic Development Administration (EDA) is awarding $6 million in CARES Act Recovery Assistance grants to provide critical gap financing and technical support to New York businesses impacted by the coronavirus pandemic.
“President Biden is committed to unleashing the full power of the federal government to ensure our nation not only recovers from this pandemic but builds back stronger,” said Secretary of Commerce Gina Raimondo. “These EDA investments will provide New York businesses with the capital and technical assistance needed to bring them back better than ever before.”
“The Economic Development Administration plays and important role in helping communities across the nation implement strategies to mitigate economic hardships brought on by the coronavirus pandemic,” said Dennis Alvord, Acting Assistant Secretary of Commerce for Economic Development. “These EDA investments will establish a Revolving Loan Fund to support small businesses in New York City and assist businesses in the Adirondack North Country region with developing long-term recovery and resiliency plans.”
“The Federal Government's support is just as crucial in the economic recovery from COVID-19 as it was during the height of the pandemic, when a national response was needed to help combat the virus,” said Eric Gertler, Empire State Development Acting Commissioner and President & CEO-designate. “Under Governor Andrew M. Cuomo, New York State has committed hundreds of millions of dollars towards creating innovative programs designed to assist businesses, and the CARES Act Recovery Assistance grants will help accelerate our rebuilding efforts. Thanks to President Biden, Secretary Raimondo and the Commerce Department's EDA for their ongoing positive, productive partnership.”
“In these trying and unprecedented times, it’s critical that we support businesses across New York to help put local economies on track to recovery,” said Senator Charles Schumer. “That is why I fought hard to include EDA funding in the CARES Act, and additional EDA funds in the American Rescue Plan to help business owners weather the devastating economic impact of the COVID-19 pandemic and invest in the recovery of local economies. This federal investment will provide a lifeline to small businesses, saving over a thousand jobs and creating hundreds of new ones.”
“The COVID-19 pandemic strained businesses and entrepreneurs across New York State as costs surged and revenues dwindled,” said Senator Kirsten Gillibrand. “I am proud to have secured this CARES Act funding that will bring $6 million in federal relief to help our local business leaders stay afloat, grow their businesses, and build economic resilience in our communities. This funding is great news for Saranac Lake and New York City, and it will help create hundreds of jobs and opportunities in the state. Rebuilding our regional economies is dependent on local companies like TruFund Financial Services and the Adirondack North Country Association, and I will continue serving as a fierce advocate to provide the resources needed to rebuild a strong and equitable economy.”
The EDA investments announced today are:
- TruFund Financial Services, Inc., New York, New York, will receive a $5 million EDA CARES Act Recovery Assistance grant to capitalize and administer a Revolving Loan Fund that will provide gap financing to small businesses throughout the five boroughs of New York City. The project is expected to create 125 jobs and retain 250 jobs.
- Adirondack North Country Association, Saranac Lake, New York, will receive a $1 million EDA CARES Act Recovery Assistance grant to provide technical support services to help small businesses across New York’s 11-county Adirondack North Country region develop plans to address COVID-related impacts, with a focus on improving e-commerce strategies, developing new markets, and reducing overhead through shared services and energy savings. The project, to be matched with $253,384 in local funds, is expected to create 210 jobs and retain 1,425 jobs.
This project is funded under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (Public Law 116-136 PDF), which provided EDA with $1.5 billion for economic assistance programs to help communities prevent, prepare for, and respond to coronavirus. EDA CARES Act Recovery Assistance, which is being administered under the authority of the bureau’s flexible Economic Adjustment Assistance (EAA) (PDF) program, provides a wide-range of financial assistance to eligible communities and regions as they respond to and recover from the impacts of the coronavirus pandemic.
About the U.S. Economic Development Administration (www.eda.gov)
The mission of the U.S. Economic Development Administration (EDA) is to lead the federal economic development agenda by promoting competitiveness and preparing the nation's regions for growth and success in the worldwide economy. An agency within the U.S. Department of Commerce, EDA makes investments in economically distressed communities in order to create jobs for U.S. workers, promote American innovation, and accelerate long-term sustainable economic growth.