Empire State Development can lend 40% of buyout costs

[Joe Marraffino]

Hi NYS list,

In a recent conversation with someone at Empire State Development they lifted up the Employee Ownership Assistance section of the NYS Job Development Authority. In brief, when an employee association is acquiring a manufacturing plant that is at risk of closing or relocating, they would participate in up to 40% of the buyout costs. Verbally they told me that employees would need to  contribute 10%, and that interest rates are currently below 4%. The legislative rationale is to stem unemployment and keep jobs rooted in NYS.       

Has anyone used or explored using this with ESD?  It is referred to as dormant in this 2017 article, around the time the State passed the Promoting Employee-Owned Businesses Act.  But it seems to be alive from ESD's perspective. 

Joe 

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Joe Marraffino

Cooperative Fund of the Northeast

j...@cooperativefund.org | ‪(607) 241-0051‬

[Angela D.]

I haven't. I just forwarded to the folks at The Working World (and suggested they hop on this list if they aren't already).

Angela

[Tammy Shapiro]

Hi All,

I don't know about this, but I do know that Senator Jamal Bailey is pushing a bill to make even more funding available to converting businesses through  Empire State Development.  As far as I know, it has not passed the Assembly yet, but it did pass the senate.  It passed in past years, but Cuomo didn't sign it.

Not sure that helps at all.

Best,

Tammy

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Tamara Shapiro | She/Her/Hers

NYC Network of Worker Cooperatives

Director of Programs

ta...@nycworker.coop | Tel: (212) 390-8178

[Rebecca Lurie]

I asked a few peeps in Albany who do workforce and econ dev. Let's find out!

Rebecca

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