2023 Annual Report — New York State Assembly Committee on Small Business
Summary
The 2023 Annual Report of the New York State Assembly Committee on Small Business, chaired by Albert A. Stirpe, Jr., with a transmittal letter to Speaker Carl E. Heastie dated December 15, 2023. The letter says the committee worked on solutions for small businesses struggling because of the COVID-19 pandemic, supply chain disruptions and employee shortages. The report lists the 2023-24 budget outcome, including $12 million for new Small Business Innovation Research grants and an increase in the Excelsior Linked Deposit maximum loan from $2 million to $4 million. It also notes an extension of the application deadline for the COVID-19 Capital Costs Tax Credit Program from March 31, 2023, to September 30, 2023, and says the committee reported three bills favorably in 2023.
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“2023 Annual Report — New York State Assembly Committee on Small Business.”
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NEW YORK STATE ASSEMBLY
Carl E. Heastie, Speaker
Albert A. Stirpe, Jr., Chair
2 0 2 3 A N N U A L R E P O R T
COMMITTEE ON
Small Business
CHAIR
THE ASSEMBLY Committee on Small Business
STATE OF NEW YORK COMMITTEES
Agriculture
ALBANY Alcoholism and Drug Abuse
Economic Development, Job Creation,
Commerce and Industry
Higher Education
ALBERT A. STIRPE, JR.
Assemblyman 127th District
December 15, 2023
Honorable Carl E. Heastie, Speaker
New York State Assembly
Legislative Office Building, Room 932
Albany, New York 12248
Dear Speaker Heastie:
I am pleased to submit the 2023 Annual Report of the Assembly Standing Committee on Small
Business. Throughout this Legislative Session, the Committee worked on policy and budget
solutions for small businesses struggling through tough economic times due to the COVID-19
pandemic, and subsequent imposed restrictions, supply chain disruptions, and employee
shortages.
The Enacted State Fiscal Year 2023-24 Budget invests in programs that support small business
and encourages innovation that will help rebuild New York’s economy. Included in the enacted
budget is: $15.03 million for the Centers for Advanced Technology and $14 million in total
support for each of the Centers of Excellence; $12 million for the new Small Business
Innovation Research (SBIR) program grants; $1 million for a statewide study of public and
private museums; and we expanded the Excelsior Linked Deposit program by increasing the
maximum loan amount from $2 million to $4 million and the lifetime cap from $2 million to $6
million.
I join my colleagues in commending you for your continued commitment to supporting small
businesses. The Committee looks forward to a productive legislative session so we can continue
to rebuild and create a healthy environment for small businesses to thrive across New York State.
Sincerely,
Al Stirpe, Chair
Committee on Small Business
DISTRICT OFFICE: 7293 Buckley Road, Suite 201, N. Syracuse, New York 13212 • 315-452-1115, FAX 315-452-1119
ALBANY OFFICE: Room 622, Legislative Office Building, Albany, New York 12248 • 518-455-4505, FAX 518-455-5523
EMAIL: stirpea@nyassembly.gov
2023
ANNUAL REPORT
NEW YORK STATE ASSEMBLY
STANDING COMMITTEE ON SMALL BUSINESS
Al Stirpe
Chairman
Committee Members
Majority Minority
Carrie Woerner John McGowan
Inez Dickens Marjorie Byrnes
Billy Jones Eric Brown
Taylor Darling Scott Bendett
Emily Gallagher Michael Novakhov
Chantel Jackson
Sarah Clark
Jenifer Rajkumar
Manny De Los Santos
Monique Chandler-Waterman
John Zaccaro
Staff
Fletcher Whyland, Assistant Secretary for Program and Policy
Mary Ellen O’Connor, Analyst
Sally Block, Program and Counsel Secretary
2
TABLE OF CONTENTS
I. INTRODUCTION, COMMITTEE JURISDICTION AND ACTIVITY………….………4
II. 2023-2024 SMALL BUSINESS BUDGET OUTCOME …………………………………..5
III. ISSUES BROUGHT THROUGH COMMITTEE IN 2023 ………..…………………10
IV. PUBLIC OUTREACH ………………………………………………………………11
V. OUTLOOK FOR 2024 ……………………………………………………………………..12
APPENDIX A: 2023 SUMMARY SHEET …………………………………………………..13
APPENDIX B: CHAPTERS OF 2023 ………………………………………………………..14
APPENDIX C: ADDITIONAL BILLS REPORTED IN 2023 ……………………………..15
APPENDIX D: SMALL BUSINESS WEEK RESOLUTION ……………………………..16
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I. INTRODUCTION, COMMITTEE JURISDICTION AND ACTIVITY
Small businesses are defined in State law as those businesses employing 100 or fewer people.
According to Empire State Development in the most recent Annual Report on the State of Small
Business, New York State small businesses comprise 98 percent of the State’s established firms
and an estimated 40 percent of the state workforce. Just about all industries in the state are
represented by small businesses, including trade, professional services, leisure activities,
construction, financial services, health care, manufacturing, transportation, information, and
education.
New York’s small businesses are integral to the State’s economy, but the effects of pandemic,
supply chain disruptions, and the current rise in inflation are proving to be difficult for many
businesses across the State. In last year’s and again in this year’s enacted budget, the State
Legislature has created funding programs to help small businesses through various funding
programs and statutory changes. Additionally, the Committee continues to promote budget
programs and legislation that will improve access to credit, financial programs and technical
assistance services for small businesses of all kinds, including minority-, women-, and veteran-
owned businesses.
The Committee also works closely with several State agencies and entities to ensure they serve
the needs of the small business community. This includes the Department of Economic
Development and the Empire State Development Corporation, which are the State’s chief
economic development entities.
During the 2023 Legislative Session, the Standing Committee on Small Business reported three
bills favorably.
4
II. 2023-2024 SMALL BUSINESS BUDGET OUTCOME
In the most recently enacted state budget, the Committee on Small Business supported key
initiatives to boost New York’s economy, create jobs, and facilitate opportunities for small
businesses and entrepreneurs. The following are budget highlights that affect small businesses in
New York State:
The enacted State Budget provided an All Funds appropriation of $107.3 million, an increase of
$4.4 million over the Executive proposal, for the Department of Economic Development.
Further, the budget provided an All Funds appropriation of $1.58 billion, an increase of $292.3
million over the Executive proposal, for the Urban Development Corporation. The following are
highlights of some of the programs that are funded to promote economic development and
businesses in New York via the State Fiscal Year 2023-2024 Budget:
• Workforce Development:
o $2 million for the Empire State Entertainment and Diversity Training
o $400,000 for the establishment of a pilot entrepreneurship training grant program
o $180.4 million to support the new Office of Workforce and Economic Development at
Empire State Development to provide resources to: leverage Empire State
Development’s relationships with employers to help identify employer needs; develop
tailored regional training strategies; support programs to train New Yorkers in the skills
necessary to succeed in in-demand fields; and make targeted investments in teachers,
healthcare workers, apprenticeships and internships, mental health professionals, and
caregivers
• University-Based Programs:
o $15.03 million in total support for the Centers for Advanced Technology (CATs). The
CATs collaborate with New York companies on the development of new technologies
and products and create new businesses and high-quality jobs throughout the State
o $14 million in total support for each of the Centers of Excellence (CoEs). The CoEs
collaborate with New York companies in commercializing scientific discoveries in fields
such as nanoelectronics, bioinformatics, photonics, environmental systems, wireless
applications, and information technology.
5
Also, the following additional CoE programs received funding as follows:
▪ $1 million to the University at Albany CoE in data science in atmospheric and
environmental prediction and innovation
▪ $1 million to New York Medical College to create and operate a CoE in Precision
Responses to Bioterrorism and Disaster
▪ $1 million to the Clarkson - SUNY ESF CoE in Healthy Water Solutions
o $1.503 million for SUNY Polytechnic Institute College of Nanoscale Science and
Engineering and Rensselaer Polytechnic Institute Focus Center
o $1 million University of Rochester Laser Energetics Program
o $2.7 million for Small Business Development Centers
o $1 million for Stony Brook Medicine’s National Cancer Institute
• General Economic Development:
o $400 million for the New York Works Economic Development Fund
o $50 million for the Restore New York Communities Initiative
o $45 million for economic development initiatives of the State for promoting tourism and
expanding business investment and job creation and retention
o $26.18 million for the Empire State Economic Development Fund
o $15 million for the Market New York Program
o $7.5 million for Retention of professional football in western New York
• Business Assistance:
o $15.470 million for the Manufacturing Extension Partnership Program
o $12 million for the High Technology Matching Grants Program which includes Security
Through Advanced Technology (START) initiative, the Small Business Innovation
Research (SBIR) program, and the Small Business Technology Transfer (STTR) program
6
o $5 million for the New York State Innovation Hot Spots/ New York State Incubators
o $1.76 million for the Entrepreneurial Assistance Program (EAP)
o $1.382 million for the Technology Development Organizations (TDO)
o $1.495 million for the Community Development Financial Institutions (CDFI) Program
o $2 million for the Minority- and Women-Owned Business Development and Lending
Program and for Minority- and Women-Owned Business Development
o $921,000 for the Industrial Technology Extension Service Program
o $343,000 Science and Technology Law Center
o $3.404 million for the Urban and Community Development Program
• Commerce, Regional Economic Development, Trade and Tourism:
o $24 million for FeedMore Western New York
o $5 million for arts and cultural venues of ALIVE! Downtowns
o $1 million for a statewide study of public and private museums
o $700,000 for CenterState CEO
o $250,000 for the Adirondack Sports Council
o $100,000 for the Adirondack North Country Association
o $750,000 for the Rochester-Monroe Anti-Poverty (RMAPI) Initiative
o $225,000 for the North Country Chamber of Commerce
o $150,000 for the Association of Community Employment Programs
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o $150,000 for the Finger Lakes Tourism Alliance
o $100,000 for the Buffalo Niagara Partnership
Reginal Economic Development Councils
The 10 Regional Economic Development Councils (REDCs) of New York State, which include
community, business, academic leaders, and members of the public in each region, use their
knowledge and understanding of local priorities and assets to help direct state investment in
support of job creation and economic growth. REDCs have developed and implemented
comprehensive Strategic Plans for their respective regions and regularly issue updated plans.
These plans play an important role in determining how millions of dollars in existing economic
aid are awarded through the State’s Consolidated Funding Application (CFA).
o $150 million for REDC grants program
o $200 million for a seventh round of the Downtown Revitalization Initiative (DRI) to be
used to revitalize downtowns areas in each of the 10 economic regions of the State.
Funds are to be distributed as follows:
▪ $100 million for main street redevelopment programs
▪ $100 million for the NY Forward grant program to support redevelopment
in smaller and more rural areas
Article VII – Economic Development
In the 2023-2024 enacted State budget:
• The Legislature modified the Executive proposal to increase the Excelsior Linked Deposit,
by increasing the maximum loan amount from $2 million to $4 million and the lifetime cap
from $2 million to $6 million.
• The Legislature modified the Executive proposal to extend the general loan powers of the
Urban Development Corporation by providing a one-year extension to July 1, 2024.
• The Legislature modified the Executive proposal to extend the authorization of the Urban
Development Corporation to administer the Economic Development Fund by providing a
one-year extension to July 1, 2024.
8
• The Legislature modified the Executive proposal to establish a matching grant program for
small businesses who have been awarded funds under the federal Small Business Innovation
Research or Small Business Technology Transfer programs by increasing grant amounts,
authorizing Empire State Development (ESD) to issue a commitment letter to those seeking
a federal grant and to provide businesses with assistance to access the entire suite of all ESD
grant, lending and financing programs as well as business mentoring and related services.
• The Legislature added a statewide study of public and private museums.
• The Legislature added a new Pilot Entrepreneurial Training Grants Program. This program
will provide grants to entrepreneurs and small businesses of at least $5,000 up to $25,000.
Eligible businesses would have to successfully complete the Entrepreneurial Assistance
Center training program to qualify for a grant. This pilot program would sunset after two-
years.
• The Legislature modified and enhanced the Film Tax Credit as follows: extended the
program for an additional five years; increased the annual aggregate cap from $420 million to
$700 million, beginning in tax year 2024; increased the annual post-production credit amount
from $25 million to $45 million; increased in the credit for qualified expenses from 25
percent to 30 percent; included “Above the Line” salaries of writers, directors, and other such
professionals in the calculation of the credit; included language to allow non-wage
production costs within the enhanced portion of the Upstate credit computation, for certain
productions with a minimum budget of $500k and shot principally Upstate; amended
language to remove the current $5 million annual aggregate cap for the Enhanced Upstate
portion; included language to allow qualified relocation costs to be included in the
calculation of the credit, to the extent such costs do not exceed $6 million; and included
language to allow for a certain re-branded variety show to be eligible for the credit.
• The Legislature modified the Executive proposal to extend the Application Deadline for
COVID-19 Capital Costs Tax Credit Program from March 31, 2023, to September 30, 2023.
Under this program, small businesses with $2.5 million or less of gross receipts are eligible
for a credit of 50 percent of their qualifying costs, up to $25,000, with a minimum credit of
$1,000.
• The Legislature rejected the Executive proposal to rebrand the START-UP NY program as
EPIC.
9
III. ISSUES BROUGHT THROUGH COMMITTEE IN 2023
• Creates the Small Business Compliance Guide
(A.2364 Stirpe; Delivered to Governor)
This bill would require the Secretary of State to publish in the State Register a Small
Business Compliance guide that would outline the statutory and regulatory changes made in
the prior year.
• Assists Dry Cleaning Businesses and Appearance Enhancement Businesses
(A.4696 Kim, Delivered to Governor)
This bill would expand the eligibility criteria of the Economic Development Fund to provide
assistance to dry cleaning and appearance enhancement businesses to make necessary capital
improvements through grants and flexible financing programs.
• Marketing the Small Business Revolving Loan Program to Veterans
(A6140-A Cook; Chapter 617 of the Laws of 2023)
This law requires the Small Business Revolving Loan Fund to target and market to veteran-
owned enterprises and service-disabled veteran owned enterprises.
10
IV. PUBLIC OUTREACH
Oversight of Economic Programs funded in the enacted 2023-2024 State Budget
On October 26, 2023, the Committees on Economic Development and Small Business held a
hearing to examine the impact and effectiveness of the economic development programs funded
in the enacted 2023-2024 State Budget.
This hearing sought to provide Committee Members with information related to the effectiveness
of State funded economic development programs as they relate to promoting an equitable and
inclusive economy and ensuring that such programs are meeting the needs of businesses, the
workforce, and communities historically or currently disproportionately impacted by economic
pressures. The hearing also examined how programs can be improved to provide a greater
economic impact across the State and enhance their impact in promoting equitable and inclusive
policies.
11
V. OUTLOOK FOR 2024
The Small Business Committee’s support for New York’s small businesses is unwavering. The
Committee will continue to address the needs of small businesses, minority- and women-owned
business enterprises (MWBE), and veteran-owned businesses, creating a supportive environment
that encourages their growth, expansion, and stability here in New York.
The priorities of the Committee include increasing access to capital and the expansion of
MWBEs while supporting the development and commercialization of innovative new
technology, adoption of alternative energy and energy conservation, workforce and economic
development, improving contracting opportunities with State and local governments, veterans’
business assistance, immigrant-owned business assistance and continuing to help small
businesses recover from the effects of the pandemic and persistent inflation concerns.
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APPENDIX A
2023 SUMMARY OF ACTION ON ALL BILLS REFERRED TO THE COMMITTEE ON
SMALL BUSINESS
TOTAL NUMBER OF COMMITTEE MEETINGS HELD 1
2023 Summary Sheet
BILLS REPORTED FAVORABLE TO:
Assembly Senate Total
BILLS REPORTED FAVORABLE TO: Bills Bills
Codes 0 0 0
0 0 0
Judiciary
2 0 2
Ways and Means
0 0 0
Rules 1 0 1
Floor 3 0 3
TOTAL
COMMITTEE ACTION
Held For Consideration 0 0 0
Defeated 0 0 0
Enacting Clause Stricken 0 0 0
REMAINING IN COMMITTEE 12 2 14
BILLS REFERENCE CHANGED TO
TOTAL 0 0 0
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APPENDIX B
Chapters of 2023
ASSEMBLY SENATE
CHAPTER BILL BILL DESCRIPTION
(SPONSOR) (SPONSOR)
This law requires the Small Business
Revolving Loan Fund to target and market
A.6140-A S.1671-A
Chapter 617 to veteran-owned enterprises and service-
Cook Addabbo disabled veteran owned enterprises.
14
APPENDIX C
Additional Bills Reported in 2023
ASSEMBLY
BILL LAST ACTION DESCRIPTION
(SPONSOR)
This bill would require the Secretary of State
to publish in the State Register a Small
Business Compliance guide that would outline
A.2364 the statutory and regulatory changes made in
Delivered to Governor
Stirpe the prior year.
This bill would expand the eligibility criteria
of the Economic Development Fund to
A.4696 provide assistance to dry cleaning and
Delivered to Governor
Kim appearance enhancement businesses to make
necessary capital improvements through
grants and flexible financing programs.
15
APPENDIX D
NYS Assembly Resolution – Small Business Week
No. K419, Sponsored by Assembly Member Stirpe
MEMORIALIZING Governor Kathy Hochul to proclaim May 8-12, 2023, as Small Business
Week in the State of New York.
WHEREAS, From Montauk to Buffalo, Plattsburgh to Binghamton and every community in-
between, small businesses are the heart of those communities; and
WHEREAS, According to the 2022 Annual Small Business Report prepared by Empire State
Development, small businesses continue to be a significant economic driver in New York State
with an estimated 98 percent of New York businesses having fewer than 100 employees and
which employ 39 percent of the workforce; and
WHEREAS, Small businesses of all kinds, from family-owned restaurants and farmers markets
to antique stores and landscapers, are crucial to the health of our communities and to the State's
economy overall, but have been greatly tested during these past three years; and
WHEREAS, The COVID-19 pandemic had an outsized effect on New York’s small business,
and its ramifications continue to be felt by small businesses across the State; and
WHERAS, Small businesses showed great ingenuity and resilience by adapting quickly to
pandemic related restrictions and weathered economic hardship; and
WHEREAS, New York State continues to actively support minority and women-owned
business enterprises and veteran-owned and service-disabled veteran-owned businesses; and
WHEREAS, The innovation, diversity, competitive strength, job creation, and quality of life
that small businesses bring to our economy are vital elements for our State's long-term economic
health; and
WHEREAS, The entrepreneurial spirit of New York residents has led to the creation and growth
of emerging agricultural industries in New York, such as craft beverages, artisanal foods, and the
production of hemp, hops and adult-use cannabis; and
WHEREAS, Small business owners demonstrate extraordinary resilience in the face of larger
forces beyond their control, such as challenging economic times, supply chain disruptions, and
pandemics; and
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WHEREAS, The future welfare of our State depends on the continued development of small
businesses; and
WHEREAS, The members of the New York State Assembly wish to proclaim their recognition
of small businesses as a crucial element in the economy of New York State; now, therefore, be it
RESOLVED, That this Legislative Body pause in its deliberations to memorialize Governor
Kathy Hochul to declare May 8 -12, 2023, as Small Business Week in the State of New York;
and be it further
RESOLVED, That a copy of this Resolution, suitably engrossed, be transmitted to The
Honorable Kathy Hochul, Governor of the State of New York.
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