Submitted by Naomi M on Wed, 12/12/2007 - 06:00.
NY Business Owners Get a Boost From New Micro-Loan Program
The Small Business Administration is lending a hand to small businesses in Schuyler, Steuben and Chemung counties by providing the Regional Economic Development and Energy Corp. with $500,000 to fund the agency's new micro-loan program.
The maximum loan amount to a single applicant is $35,000, and the total budget for the project can't exceed $105,000. The interest rates will be based on the prime rate and determined when the loans are approved.
Although the formal launching of the new direct loan program is scheduled for this morning -- when the SBA's associate administrator of field operations, William Manger, and Bernard J. Paprocki, Syracuse SBA district director, will present REDEC with a symbolic check -- the loan program has already created quite a bit of interest.
"Loans can be used for any business use, but they are really intended for smaller businesses that may need working capital or some additional financing," Lantz said.
The current applications are all from existing businesses, which is how the agencies envisioned the new program being utilized.
"It can help start-ups, but we also see it working for existing businesses increasing their inventory, or buying a new piece of equipment," said Bonnie Gestwicki, director of the Corning Community College Small Business Development Center in Corning. "It's an opportunity for funding, more access to capital."
"It's another tool available because sometimes the smaller businesses do get overlooked. The new program will be an alternative but the applicants will still have to go through the same due diligence," Lantz said.
In addition to the loan, said Manger, the borrowers also get counseling and training. The loan program, he said, is designed for entrepreneurs who don't require a large loan for the business and who also might not have a lot of business experience.
"They can get the money at a much lower rate. It's perfect for people looking to start a business out of their house, people who need help developing the business ideas and just need a small loan," Manger said.
Apply online for a business loan from $25,000 and up through this website. Details are on the homepage.
Source: http://www.stargazettenews.com/apps/pbcs.dll/article?AID=/20071212/BUSINESS/712120319
The maximum loan amount to a single applicant is $35,000, and the total budget for the project can't exceed $105,000. The interest rates will be based on the prime rate and determined when the loans are approved.
Although the formal launching of the new direct loan program is scheduled for this morning -- when the SBA's associate administrator of field operations, William Manger, and Bernard J. Paprocki, Syracuse SBA district director, will present REDEC with a symbolic check -- the loan program has already created quite a bit of interest.
"Loans can be used for any business use, but they are really intended for smaller businesses that may need working capital or some additional financing," Lantz said.
The current applications are all from existing businesses, which is how the agencies envisioned the new program being utilized.
"It can help start-ups, but we also see it working for existing businesses increasing their inventory, or buying a new piece of equipment," said Bonnie Gestwicki, director of the Corning Community College Small Business Development Center in Corning. "It's an opportunity for funding, more access to capital."
"It's another tool available because sometimes the smaller businesses do get overlooked. The new program will be an alternative but the applicants will still have to go through the same due diligence," Lantz said.
In addition to the loan, said Manger, the borrowers also get counseling and training. The loan program, he said, is designed for entrepreneurs who don't require a large loan for the business and who also might not have a lot of business experience.
"They can get the money at a much lower rate. It's perfect for people looking to start a business out of their house, people who need help developing the business ideas and just need a small loan," Manger said.
Apply online for a business loan from $25,000 and up through this website. Details are on the homepage.
Source: http://www.stargazettenews.com/apps/pbcs.dll/article?AID=/20071212/BUSINESS/712120319
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