Empire State Development Corp., a state economic development agency, recently partnered with the Metropolitan Transportation Authority and Manhattan-based Carver Federal Savings Bank to make it easier for small businesses to bid on construction projects with the MTA.
The state’s aim is to increase the availability of funds for the MTA’s high-capital projects through its Small Business Mentoring Program, which provides businesses with mentoring, training, surety bonding services and access to loan capital.
“Lack of access to start-up capital is probably the most significant barrier preventing small firms from doing business with us,” said Thomas F. Prendergast, chairman and CEO of the MTA, in a written statement.
The maximum amount of loans Carver Federal Savings Bank will provide increased to $900,000, up from $150,000. The increase in the amount of lending through the bank will not only help small businesses grow and create jobs, but it will provide more competitive prices for MTA construction contracts, saving the state money, Prendergast added.
Through a competitive bidding process, Carver Federal Savings Bank was selected to provide loan capital for the MTA Small Business Mentoring Program. Empire State Development will establish a $480,000 loan loss reserve to support the Small Business Mentoring Program.
