The Urban Institute is a nonprofit research organization that provides data and evidence to help advance upward mobility and equity. They are a trusted source for changemakers who seek to strengthen decision-making, create inclusive economic growth, and improve the well-being of families and communities. For more than 50 years, Urban has delivered facts that inspire solutions.
They recently released a study of the small business ecosystem in the Interstate 90 (I-90) Corridor, which includes the cities of Syracuse, Rochester and Buffalo. Industries that became household names – like Carrier, Kodak and Xerox – once employed tens of thousands of people in the region. In recent decades, however, jobs and population have declined.
According to the report, “The three cities are among the lowest in small business lending per small business employee among midsize cities. In response, the I-90 corridor now seeks to leverage its rich and diverse supply of resources to reignite its entrepreneurial spark and rebuild its small business ecosystem.”
Community Development Financial Institutions (CDFIs) could play a vital role in this effort, but the study shows that they lack capacity to meet the need.
Several members of the NYS CDFI Coalition were mentioned in the study as “working to build up the capital access ladder in the I90 corridor, including Westminster Economic Development Initiative (WEDI), Launch NY, Pathstone, and Pursuit Lending. WEDI is a microlender focused on immigrant and refugee communities. Launch NY is a provider of equity capital in the area, with some signature successes. Pathstone prioritizes business in 'the middle territory,' as its average loan size is about $80,000. Pursuit is a higher volume small business lender and is especially active in its use of the US Small Business Administration (SBA) 504 program. It is based in New York City and has expanded its operations into the I-90 corridor.”
Unfortunately, the study uncovered a history of municipalities and regions “competing against one another as opposed to collaborating, which has pushed the I-90 corridor’s cities to silo their efforts.”
As the NYS CDFI Coalition assesses its priorities for 2025, one of our goals is to facilitate our members’ efforts to identify partners and opportunities to collaborate. As the Urban Institute reported, “small businesses and the institutions that serve them face significant challenges and can benefit from robust public and philanthropic support and greater regional coordination.”
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