New York state announced this past Weds the creation of a $50 million Small Business Revolving Loan Fund, an actualized recommendation of last year's NY State Small Business Task Force report.

This may be relevant to your business - if it's an independently owned and operated outfit belonging to a NY state resident with fewer than 100 employees. It will also target minority and women-owned enterprises and other entrepreneurs having difficulty accessing regular credit markets, the governor's office said in a news release.

Beneficiaries must be "main street' businesses needing working capital, refinancing of debt or capital to fund property improvements and equipment purchases. The application process, similar to NYDesigns' own incubator residency program, asks for a working business plan that demonstrates long term growth as well as sufficient collateral.

Revolving loan funds (RLFs) step in to diversify the small business loan package when access to credit is restrained - a neutral way of describing one painful aspect of the current recession blues - and supports the development and expansion of new businesses, employment opportunities and the local economy. Public impact must be demonstrated by borrowers in their reporting schedules and may include the number and type of jobs created or retained, increase in tax revenue etc.

NY state's RLF pool will be supported by $25 million of state funds; the remainder will be matched by the investments of select lending institutions. The fund's capitalization is meant to be self-replenishing: the interest and principal payments on old loans issue new ones.

The RFP just came out for private sector investments so expect some activity on the borrowing front towards the last quarter of 2010.

Find out more on RLFs at the Coucil of Development Finance Agencies.