Comptroller says $200M fund to finance small NY businesses

ALBANY — New York’s comptroller says a new $200 million fund will provide credit financing to eligible small businesses that can provide solid returns to the state pension fund.

Comptroller Thomas DiNapoli, trustee of the $184.5 billion in retirement investments for state and local government workers, says Hamilton Lane will manage the New York Credit Small Business Investment Company Fund.

The state pension fund has committed $50 million to the new program. Additional investors are TD Bank, Bank of NY Mellon, HSBC Bank, Deutsche Bank and First Niagara Bank.

According to the comptroller’s office, many banks have been reluctant to lend capital to smaller businesses because of scale, efficiency and risk requirements.

DiNapoli says these investments will fit the priorities of generating returns while helping boost New York’s economy.