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Crain's New York Business

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CRAINSNEWYORK.COM

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APRIL 10, 2023

BAIL REFORM PHARMACY BENEFITS

ANDREA STEWART-COUSINS MTA

POLITICS

BUDGET BLOCK These are the proposals that could transform New York—if the state budget ever gets passed

HOUSING

BY NICK GARBER

likely beyond. In an April 3 statement announcing the exteny this time in April, Gov. Kathy Hochul had sion, Hochul appeared to telegraph her top priorities: changing the bail law, pushing hoped to be touring the state through her “housing compact,” and liftand touting a transformative, ing a cap on charter schools in the city. $227 billion budget that would “New Yorkers are concerned about kick start housing growth, respublic safety, the rising cost of housing, cue the city’s transit system, expand and ensuring high-quality schools for all health care coverage and tighten bail laws. our kids, and any budget deal must make Instead, as of press time, Albany was SIZE OF Gov. progress on these core issues,” the goverstill waiting impatiently as talks dragged Kathy Hochul’s nor said. on between the governor’s office and proposed budget Other big issues have scarcely figured in leaders from the state Senate and Assemso far in the public budget debate, such as bly. The stalemate, blamed largely on bail reform, forced the April 1 budget deadline to be pushed until at least April 10, and See BUDGET on page 19

B CRAIN’S COMPOSITE

KATHY HOCHUL

BY THE NUMBERS

$227B

FINANCE

With little evidence of credit crunch, small biz still plans for worst BY KATHERINE DAVIS, CARA EISENPRESS, NICK MANES, ALLY MAROTTI, JEREMY NOBILE, JOHN PLETZ AND MARK SANCHEZ

I

t’s a painful memory: In 2009 the banking crisis and housing recession led to a credit crunch, and business owners suddenly couldn’t access the capital they needed to operate and grow. The latest banking crisis so far

NEWSPAPER

VOL. 39, NO. 14

bears little resemblance to the one that kicked off the Great Recession. Crain’s reporters in New York, Michigan, Illinois and Ohio set out to understand how the dynamic between small businesses and their bankers are playing out in the

© 2023 CRAIN COMMUNICATIONS INC.

weeks following the banking crisis sparked by the failure of Silicon Valley Bank and Signature Bank. We discovered much concern but little tangible evidence of a credit crunch just yet. In fact, lending has increased since the failures. But there are signs of worry as small and midsize businesses shore up finances ahead of a potential re-

ger lead times from their clients opening up new stores and restaurants in the event credit applications take longer. In Oak Park, outside Chicago, a mobile-spa owner has turned to community banks and his credit card processor for funding, noting that the amount of See CREDIT on page 11

SMALL-BIZ SPOTLIGHT

THE LIST

INTRODUCING SUSTAINABLE PACKAGING TO MEDICINE

The city’s largest residential sales PAGE 12

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cession and banks reassess their balance sheets. In western Michigan, community banks say they are doing more diligence on every loan application. In New York City, one accountant’s clients are turning to credit cards as a short-term solution when loans are expensive or slow to close. In Chicago, retail real estate brokers are banking on lon-

4/7/23 6:12 PM


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