NEW YORK — Tuesday, July 21, 2026 — As first reported today by Crain’s New York Business, the Multicultural Business Coalition (MBC) is calling on New York State to establish a new lending program aimed at helping small businesses that have been left without access to federally backed financing following changes to U.S. Small Business Administration (SBA) loan eligibility rules.

The coalition is proposing that the state create a Community Development Financial Institution (CDFI) to provide loans ranging from $5,000 to $100,000 for green card holders and other underserved entrepreneurs who no longer qualify for SBA-backed financing. The initiative is designed to bridge the capital gap while preserving entrepreneurship, supporting job creation and strengthening New York’s small-business economy.

The proposal calls for an initial capitalization of approximately $20 million, with plans to attract additional public and private investment over time. Once fully operational, coalition leaders estimate the fund could support more than 150 small businesses during its initial phase.

Frank Garcia, Chairman of the Multicultural Business Coalition, said the proposal is intended to ensure entrepreneurs continue to have access to responsible financing that allows businesses to grow, hire employees and invest in their communities.

“Small business is the heartbeat of America,” Garcia said. “Our coalition believes New York has an opportunity to help responsible entrepreneurs who are ready to build businesses and create jobs but have lost access to an important source of capital. This proposal is about strengthening communities and expanding economic opportunity.”

Earlier this year, the SBA revised its lending eligibility rules to limit SBA-guaranteed loans to U.S. citizens. SBA Administrator Kelly Loeffler said at the time that the agency’s financing should prioritize American citizens who are building businesses and creating jobs in the United States.

The federal policy change prompted business organizations across New York to examine alternative financing solutions for entrepreneurs who no longer qualify for SBA-backed loans despite operating established businesses and employing local workers.

According to Crain’s New York Business, the coalition commissioned Calva Consulting to develop the proposal. The report estimates a state-backed CDFI could initially be capitalized at approximately $20 million, creating a revolving source of financing that would eventually leverage additional capital while helping businesses secure affordable loans.

Duvi Honig, Co-Founder and Secretary of the Multicultural Business Coalition and Founder & CEO of the Orthodox Jewish Chamber of Commerce, said expanding access to responsible capital is essential to maintaining New York’s economic competitiveness.

“Access to capital remains one of the greatest challenges facing entrepreneurs,” Honig said. “Small businesses are the engine of our economy, creating jobs, revitalizing neighborhoods and generating opportunity. Our coalition looks forward to working with Governor Kathy Hochul, Empire State Development, financial institutions and community partners to develop practical financing solutions that help qualified entrepreneurs continue investing in New York’s future.”

Empire State Development responded that New York already operates numerous capital access initiatives through partnerships with CDFIs and financial institutions. According to the agency, those programs have supported approximately 5,400 financings between January 2023 and March 2026, deploying more than $1.4 billion in state and private capital, with the majority directed toward socially and economically disadvantaged businesses.

Coalition leaders say the proposed CDFI would complement—not replace—existing state lending programs by focusing specifically on businesses affected by recent federal eligibility changes while expanding the overall availability of responsible small-business financing.

The Multicultural Business Coalition, launched earlier this year, brings together a broad alliance of chambers of commerce and business organizations, including the Orthodox Jewish Chamber of Commerce, Greater New York Chamber of Commerce, United Bodegas of America, the Black Institute, the New York State Mexican Chamber of Commerce, and other organizations representing entrepreneurs across New York.

Supporters say the proposal reflects a broader effort to strengthen New York’s entrepreneurial ecosystem by ensuring viable businesses continue to have access to the financing needed to grow, create jobs and contribute to the state’s economy.

JBizNews Desk | Wall Street

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