New York Creates First State Export-Import Bank
New York Gov. Andrew M. Cuomo launched “Global NY,” an initiative aimed at making New York state more competitive by attracting foreign investment and exporting more products and services, Oct. 7 at the first Global NY Summit on World Trade and Investment Conference.
Cuomo said he will “aggressively market (New York), and share with the global business community that there is no better place, with no better tools and resources, than the Empire State to grow and compete.”
Cuomo’s initiative includes the development of the first state-run export-import bank, a stronger focus on international trade and investment missions, and the development of a new one-stop shop website for New York state business opportunities.
Global New York Development Fund—Touted as the first state export-import bank, this initiative would develop a $25 million lending program by the Empire State Development Fund, which will work in conjunction with 20 private sector lenders that will leverage more than $50 million of additional funding. These new loans will be available for small and medium-sized enterprises that have difficulty obtaining private sector finance needed to enter new markets. Cuomo also announced the development of a $10 million grant fund aimed at providing small businesses with up to $25,000 to help develop export marketing plans, product adaptation, market certification and website translation. In addition, the fund seeks to work more closely with the U.S. Export-Import Bank to help New York businesses obtain export financing of up to $500,000. More information regarding the grants and funds can be found on the Global NY website, which is described in more detail below.
International Trade and Investment Missions—The governor’s office is taking a much more proactive role in international trade missions. In his first three years as governor, Cuomo did not travel abroad often and did not attend trade missions. This year, the governor has traveled to Israel and Afghanistan, and has announced plans to attend trade missions to Mexico, Canada, China, Israel and Italy in the next few years. Cuomo said international trade and investment missions are necessary to open “up those global markets” for New York businesses.
New One-Shop Stop Website—Cuomo’s office recently launched the Global NY website, which aims to be New York state’s one-stop shop for those interested in doing business in the state and for local companies looking to export their products . Businesses can find information about incentive programs or connect with international trade specialists from across the world on the website.
Global NY builds on the governor’s earlier economic development plans including Start-UP NY and his Regional Economic Development Council initiatives. START-UP NY seeks to lower companies’ corporate tax rate by having companies move to newly established tax-free zones in New York state. Following these requirements, a company may be able to avoid New York state taxes for up to 10 years.