$55.4M now available for small tech firms in NY

In twin announcements Wednesday, Gov. Andrew M. Cuomo unveiled New York's bid to secure federal money for small businesses and a sweeping overhaul of how Albany does economic development.

Cuomo said he signed into law a bill making the state eligible for up to $55.4 million in federal aid for small high-technology companies and those owned by either women or minorities. He said the federal money would foster at least $800 million in private investment.

The bill, passed last month, establishes the Innovate NY Fund to support small businesses that have inventions, technologies and other services to commercialize. Universities, economic development groups and others would invest $25 million from Washington in helping these companies to grow.

The rest of the federal aid would go to banks to encourage more lending to entrepreneurs and to help small businesses and women- and minority-owned firms secure big contracts.

"These programs will help increase access to critical capital and credit for a wide range of small businesses, giving them the tools they need to kick-start the economy," said Cuomo, noting most new jobs occur at small firms.

The law was praised locally.

Kevin Law, president of the Long Island Association, said it would boost the Accelerate Long Island initiative, which aims to commercialize inventions and research.

Cuomo also provided more details Wednesday of his plan to streamline New York's myriad economic development efforts, first unveiled last year. He said companies seeking state help would work with one of 10 regional development councils instead of multiple agencies. A universal grant application will be used to hasten decision-making.

The councils will determine whether projects are compatible with a region's economic strategy. If so, applications will be forwarded to Albany for a statewide competition.

Such a process is expected to award up to $1 billion in grants and tax credits in the 2011-12 fiscal year, according to Cuomo aide Joshua Vlasto. The money comes from nine agencies and authorities, including Empire State Development Corp.

In a 60-page book, the governor outlined duties for regional councils and a timeline for action. The councils are to begin work next month and must complete a five-year strategic plan by Nov. 14. The plans then will be judged for a portion of $200 million.

Long Island will have its own council. Members will serve two years, and two vice chairs will come from business and academia. Andrea Lohneiss, head of Empire State Development's local office, will serve as executive director. The county executives and supervisors of Hempstead, Oyster Bay, Brookhaven and Islip towns will serve as advisers.