New York Broadband Initiative Highlights Growing Recognition of Revenue-Based Financing

Washington, D.C. — The Revenue Based Finance Coalition (RBFC) today highlighted a new broadband investment initiative from the state of New York that includes revenue-based financing (RBF) as part of a strategy to expand internet access in underserved communities and to support innovative economic development.

As part of more than $8.3 million in ConnectALL awards announced by New York State, Connect Humanity received funding to establish the NY CONNECT Fund, a lending platform designed to provide flexible, impact-focused capital and RBF to community-based internet service providers serving low-income and rural communities.

The investment reflects a growing recognition of innovative financing models. Innovative models like RBF help small businesses access capital to expand services, invest in infrastructure, and meet community needs. For many small businesses, traditional financing is not always the best option.

“This announcement demonstrates the growing recognition that revenue-based financing is a powerful tool for expanding access to capital and supporting businesses,” said Mary Donohue, Executive Director of RBFC. “Revenue-based financing provides flexible funding that allows businesses to invest in growth while aligning repayment with actual revenue performance.”

RBF has become an important source of capital for businesses seeking funding solutions that reflect the realities of fluctuating revenues and evolving market conditions. By tying repayment to future revenue rather than fixed monthly payments, RBF can provide greater flexibility while helping recipients pursue growth opportunities.

The NY CONNECT Fund will provide flexible financing to community-based internet service providers while reinvesting a portion of returns into local digital skills and device access programs. The initiative is intended to help expand affordable broadband access in communities that have historically faced barriers to connectivity.

“The inclusion of revenue-based financing in New York’s broadband strategy highlights the important role flexible capital solutions can play in addressing real-world challenges,” Donohue said. “For businesses and organizations that may face barriers to traditional financing, revenue-based financing can provide the resources needed to expand operations, invest in technology, create jobs, and pursue new opportunities.”

The announcement also underscores the broader role innovative financing solutions plays in supporting economic development, infrastructure investment, and entrepreneurship. As policymakers work to encourage growth and expand opportunity, access to diverse financing options remains critical.

“Revenue-based financing helps fill important funding gaps and provides organizations with another pathway to access capital,” Donohue said. “Whether supporting small business growth, community investment, or innovative infrastructure projects, flexible financing solutions help drive economic activity and create opportunities for long-term success.”

RBFC encourages policymakers and stakeholders to continue supporting financing models that expand access to capital and empower businesses to grow and serve their communities.

About RBFC
The Revenue Based Finance Coalition (RBFC) represents responsible providers of flexible growth-oriented funding for small and medium-sized businesses. Bringing together funders, brokers, ISOs, and industry vendors, RBFC advocates for policies that expand access to revenue-based financing, promotes regulatory compliance, and supports a sustainable financial ecosystem that helps businesses invest, hire, and grow. For more information, visit www.rbfc.net.